The use of credit cards to cover everyday expenses is growing rapidly in Paraguay, especially among lower-income segments. According to data from the Central Bank of Paraguay (BCP), by May 2026, balances on credit lines of up to G. 3 million had increased by 50.6% compared to the same period the previous year, reaching G. 1.62 trillion. This accelerated growth suggests that many families are using "tarjeteo" (reliance on credit cards) as a strategy to make it to the end of the month.
In addition to the increase in credit volume, the quality of the financing is also a concern. The delinquency rate on lines of up to G. 3 million rose to 7.4% in May 2026, compared to 7.2% in the same month of 2025. Although the increase is moderate, it is occurring alongside a very rapid expansion of the balance, which is raising alarms in financial supervision.
In total, the credit card portfolio reached G. 7.02 trillion in May 2026, a 30% growth compared to the previous year. However, most of the balance is still concentrated in higher-value lines. For example, lines above G. 10 million recorded a balance of G. 3.42 trillion, with a delinquency rate of 3.7%.
The International Monetary Fund (IMF) has already warned about the risks associated with the rapid growth of consumer credit in Paraguay, recommending the application of prudential measures to avoid future problems should economic or financial conditions deteriorate. To date, the Paraguayan regulator has not commented on the IMF's observations.