President Luiz Inácio Lula da Silva signed a provisional measure creating the Novo Desenrola Brasil program to help low-income families renegotiate debts.

The initiative aims to reduce household delinquency and restore access to credit for millions of Brazilians struggling with high-interest obligations. By providing a structured pathway to clear arrears, the government seeks to stabilize consumer spending and improve financial mobility for the working class.

Under the terms of the program, eligibility is limited to families earning up to five minimum wages, which equates to R$ 8,105 [1]. This income cap ensures that the relief reaches those most affected by financial instability, specifically those dealing with credit-card and overdraft debts.

The program is designed as a short-term intervention with a duration of 90 days [2]. This window provides a concentrated period for debtors to engage with creditors and reach sustainable repayment agreements.

To qualify for the renegotiation, the debts must have been incurred up to January 2026 [3]. This cutoff date defines the scope of the relief and prevents the program from covering very recent defaults that may not fit the intended profile of long-term delinquency.

Government officials said the measure is a necessary step to combat the rising tide of household debt in Brazil. By targeting specific debt types like overdrafts, the program addresses some of the most expensive forms of credit available to the public.

“President Luiz Inácio Lula da Silva signed a provisional measure creating the Novo Desenrola Brasil program”

The Novo Desenrola Brasil program represents a strategic effort by the Lula administration to stimulate the domestic economy by cleaning up household balance sheets. By capping eligibility at five minimum wages and limiting the window to 90 days, the government is attempting a surgical strike on delinquency rather than a broad debt jubilee. The success of the measure will depend on the willingness of private banks to accept the renegotiated terms and the ability of low-income borrowers to maintain payments after the initial relief.