According to a recent report released by the Central Bank of Brazil, the country is poised to witness a substantial 30.9% growth in the number of credit card users between 2019 and 2022. The data highlights a significant shift in consumer behavior, indicating a rising preference for credit card transactions among Brazilians. In June of last year, the report revealed that approximately 84.7 million individuals carried credit card debt balances, compared to 64.7 million in June 2019. This substantial increase indicates a notable surge in the adoption of credit cards as a preferred payment method in Brazil.

Within this context, it is essential to understand the concept of ‘debit balance,’ which refers to the unpaid amount resulting from a purchase, either in installments or as a lump sum, on which interest may be charged. The report’s findings shed light on the escalating prevalence of debit balances among credit card users in Brazil.

The data further highlights an interesting trend, revealing that 54% of customers possess debit balances with a single financial institution, while 25% have balances with two institutions, and 20% have balances with three or more. This correlation between the number of credit card ties and higher average debt balances suggests that customers utilizing cards from multiple institutions tend to expand their spending capacity through additional credit limits, ultimately resulting in higher consolidated debit balances.