Brazil’s central bank president Gabriel Galípolo warned the government against adding further stimulus as household debt reached a record 82% in July 2026. The CNC survey showed the measure rising for a sixth consecutive month, from 81.6% in June and 78.5% a year earlier, marking its highest level since tracking began in 2010. Galípolo identified revolving credit-card balances, personal loans and unsecured payroll-deductible credit as greater risks than mortgages because they do not create assets for borrowers. Revolving credit-card rates exceed 400% annually, while Brazil has between 96 million and 100 million credit-card users. Household debt-to-income ratios reached roughly 49.8% to 49.9% in mid-2026. The Selic rate (Brazil’s benchmark interest rate) is near 14%, after a reduction from 14.25%, reflecting the contractionary monetary stance Galípolo has supported. Although government debt-renegotiation programs have offered short-term relief, banks are shifting toward secured loans and higher-income borrowers. That is leaving lower-income, heavily indebted households more reliant on expensive unsecured credit. Galípolo also urged responsible use of Pix (Brazil’s instant-payment system) and fintech services as Brazil moves toward elections, when governments may face incentives to increase spending.