In a televised May Day speech, Brazil's president said workers can renegotiate credit card, overdraft, revolving credit, personal and FIES student loan debts.
The measure is Lula's latest effort to support household consumption as he heads toward Brazil's October election and seeks to improve public support.
No further operational details were provided in the report, but the plan targets heavily used consumer credit lines that can strain family finances.
Is Brazil's massive debt relief a cure for its economic crisis or just a pre-election painkiller?
With student loans in the bailout, how will sanctions on 54 medical schools impact students' promised relief?