50.11% of income. That is how indebted Brazilian families were in August, the highest level in the Central Bank's historical series. In practice, half of everything households earn is already spoken for: it goes to debt.

The figure was released by the Central Bank on Thursday (29), according to CNN Brasil. The indicator rose 0.2 percentage point from July and 1.2 points over twelve months.

Income commitment, the share of the paycheck used to service debt, reached 29%. For someone living on a minimum wage, it is as if almost a third of the money left their pocket every month before paying rent, electricity or groceries.

What "risk debt" means

The Central Bank splits credit into two groups. The first is low-risk debt, such as mortgages and payroll-deducted loans, which carry collateral and lower interest. The second is high-risk debt: credit cards, overdrafts and personal loans, the most expensive credit in the market.

The report shows that risk debt grew in August. That means families are turning more often to the priciest kind of credit, which squeezes the budget even harder at the end of the month.

Defaults dip but stay high

The report also brought September figures. The default rate of the National Financial System's total credit portfolio fell from 5.05% in August to 4.98% in September, after hitting a record the previous month.

For individuals, the rate went from 6.04% to 5.99%. For companies, it dropped 0.1 percentage point, to 3.3%.

The decline is welcome, but the level remains high. With credit expensive in Brazil, where the benchmark interest rate is among the world's highest, monthly installments weigh heavily on families already at their limit.