Household debt relief as financial inclusion policy: Quasi-experimental evidence from Desenrola Brasil

IMPACTThis article provides evidence-based insights for policy-makers and public finance professionals in debt management and financial inclusion. The authors’ analysis of Brazil's Desenrola program shows that publicly supported household debt relief can effectively reduce over-indebtedness and national credit arrears, even amid economic volatility and low financial literacy. The findings offer actionable guidance for emerging economies designing debt relief programs where digital infrastructure, public guarantees, and income-targeted eligibility are central design features. Beyond Brazil, the evidence contributes to debates on the state's role in credit market stabilization and the conditions under which public intervention reduces financial exclusion without fiscal or behavioural distortions.