Over-indebtedness Law completes four years with advances in consumer protection
Union between justice and credit brings relief to families and shows that it is possible to start again with dignity
For millions of Brazilians, the word "over-indebtedness" means sleepless nights, anguish and loss of control over their lives. But it has also become synonymous with a fresh start. Four years after the enactment of Law No. 14,181/2021, known as the Over-indebtedness Law, consumers are finding support to reorganize their finances, renegotiate debts and regain financial stability.
Passed with the aim of strengthening citizens' rights, the law guarantees that any renegotiation respects the existential minimum - currently set at R$ 600.00 - protecting essential resources for survival. The legislation also inhibits abusive practices when offering credit and encourages financial education as a prevention tool.
Progress is concrete. According to data from the Central Bank, in March 2025, the commitment of income to debt service was 27.2%. Although the index still represents a challenge, it shows a slight decline compared to previous years and signals that public and private initiatives have made a difference.
Among them is the State Program to Combat Over-indebtedness, launched by the São Paulo Court of Justice (TJSP). The action brings together public authorities, companies and financial institutions on a digital platform for mediation between consumers and creditors. The proposal is straightforward: to facilitate fair agreements that allow debts to be settled without sacrificing quality of life.
The program has the support of the credit bureaus Quod, Serasa and SPC Brasil, all members of the National Association of Credit Bureaus (ANBC). This networking strengthens a culture of conciliation and shared responsibility.
For Elias Sfeir, president of ANBC, the fight against over-indebtedness requires coordinated actions and a focus on financial education. “More than resolving debts, we need to build paths of autonomy and awareness. The Over-indebtedness Law, combined with initiatives such as the TJSP program, show that Brazil has made progress. However, there is still a lot to be done to ensure that everyone has access to information, responsible credit and real opportunities to start over,” says the executive.
In addition to legislation and mediation, ANBC reinforces that simple attitudes - such as planning spending, avoiding revolving credit and seeking qualified information - are fundamental to maintaining good financial health. Coping with over-indebtedness is, above all, a journey of reconstruction. And the good news is that no one has to face it alone.
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