Selic at 15% and Year-End Purchases Push Default Rates to Record High in BH

Written by Sara Aquino

Published on 16/01/2026 at 19:03

Foto: IA

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Household Debt Rises in Belo Horizonte; Delinquency Reaches 64.8% With Impact from Credit Card and High Interest Rates.

The delinquency rate in Belo Horizonte reached 64.8% of consumers in December 2025, one of the highest levels since the start of the historical series in 2014.

The index, released this Friday (16), shows a 0.1 percentage point increase compared to November and reflects the combination of Selic Rate 15%, year-end shopping, and growing difficulties in debt renegotiation.

The survey is from the Consumer Debt and Delinquency Survey (Peic), compiled by Fecomércio MG.

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Selic at 15% Pressures Budget and Makes Renegotiation Difficult

The Selic Rate of 15% per year appears as the main pressure factor on household budgets.

According to the economist at Fecomércio MG, Fernanda Gonçalves, the cost of credit limits both consumption and the ability to reorganize debts.

“With this interest rate, it ends up losing both purchasing power concerning durable and semi-durable goods, as well as being able to find better options to finance the debt.

This renegotiation becomes more challenging, and thus it loses credit power as well, which can create a snowball effect,” warns the economist.

Thus, delinquency does not only impact the consumer. Commerce also feels the effects, as credit restrictions lead families to prioritize essential expenses and postpone purchases.

Household Debt Slows Consumption and Affects the Economy

With compromised income, household debt reduces cash circulation and affects local economic activity.

According to Fernanda Gonçalves, the need to honor accumulated debts forces cuts in goods and services.

“There is a commitment of income to debt payments, which becomes an alarming scenario.

Families end up reducing spending on goods and services, which generates a direct impact on the economy, as they cannot meet these already accumulated debts,” she adds.

The scenario is more severe among families with monthly income of up to 10 minimum wages, where delinquency reaches 75.7%.

Among those earning above this level, 62.6% are reported to have overdue bills.

Year-End Shopping Increases Risk at the Beginning of 2026

Year-end shopping, especially when installment payments are involved, has contributed to pressuring the budget. The problem tends to worsen with typical first-quarter expenses, such as school tuition, insurance, and IPVA.

“In January, seasonal expenses, such as tuition, insurance, and in February there’s IPVA, if the consumer fails to get organized financially, it increases the chances of having overdue bills and delinquency.

The year-end purchases impact if there’s poor planning, and one ends up overwhelmed by multiple installments of the purchases made,” warns the economist.

Among those in delinquency, 42% believe they will not be able to regularize their debts in the following month, indicating persistence of the problem throughout the year.

Drop in Debt Does Not Prevent Increase in Delinquency

Despite the challenging scenario, Peic shows a 0.5 percentage point drop in indebtedness, which reached 87.6% in December.

Compared to the same month in 2024, when 90.8% were indebted, there is a significant improvement.

Of the total respondents, 38.9% say they are slightly indebted, 30.8% consider themselves moderately indebted, and 18% claim to be very indebted.

Thus, only 12.4% do not have any type of active debt.

Credit Card Leads Financial Commitments

The credit card remains the main villain of the budget: 96.5% of indebted consumers mention this payment method.

The recurring use for daily expenses, combined with high interest rates, requires strict control.

Other debts mentioned include installments (31.6%), vehicle financing (12.6%), and personal credit (8.7%). For many, the problem is not just the amount but the duration: 40% state that their debts will extend for more than 12 months.

Income Commitment Raises Concerns

The portion of monthly income allocated to debt payments varies between 11% and 50% for 60.9% of consumers in the capital of Minas Gerais.

Therefore, in an environment with a Selic Rate of 15%, this high share reduces the margin for consumption and increases the risk of new delinquencies.

While rising interest rates may benefit those who can invest, especially in the middle and upper classes, the challenge remains for most families.

The balance between planning, conscious use of the credit card, and caution after year-end shopping will be decisive in containing delinquency in Belo Horizonte in the coming months.

See more at: In December, Delinquency Reaches 64.8% in Belo Horizonte

Selic at 15% and Year-End Purchases Push Default Rates to Record High in BH

Household Debt Rises in Belo Horizonte; Delinquency Reaches 64.8% With Impact from Credit Card and High Interest Rates.

Selic at 15% Pressures Budget and Makes Renegotiation Difficult

Household Debt Slows Consumption and Affects the Economy

Year-End Shopping Increases Risk at the Beginning of 2026

Drop in Debt Does Not Prevent Increase in Delinquency

Credit Card Leads Financial Commitments

Income Commitment Raises Concerns

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Selic at 15% and Year-End Purchases Push Default Rates to Record High in BH

Household Debt Rises in Belo Horizonte; Delinquency Reaches 64.8% With Impact from Credit Card and High Interest Rates.

Selic at 15% Pressures Budget and Makes Renegotiation Difficult

Household Debt Slows Consumption and Affects the Economy

Year-End Shopping Increases Risk at the Beginning of 2026

Drop in Debt Does Not Prevent Increase in Delinquency

Credit Card Leads Financial Commitments

Income Commitment Raises Concerns

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A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

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