By San José, Costa Rica — SAN JOSÉ – A striking paradox is unfolding in Costa Rica’s household finances. While one in three families reports struggling to cover basic necessities, consumer credit for new vehicles has exploded, soaring from 18% of total credit in 2023 to an unprecedented 47% in 2025. This dramatic shift highlights a complex economic landscape where aspirations for mobility clash with persistent financial fragility, according to a major new study.
The findings come from the Third National Debt Survey 2025, released Wednesday by the Office of the Financial Consumer (OCF). The comprehensive report reveals that 87% of the population carries some form of debt, a slight decrease from 91% in 2023. On average, Costa Rican households allocate 34% of their monthly income to service these debts, down from 38% two years prior. However, experts caution against interpreting this drop as a sign of widespread economic relief.
To gain a clearer legal perspective on the growing issue of consumer debt and its implications for Costa Rican families, we spoke with Lic. Larry Hans Arroyo Vargas, a seasoned attorney from the prestigious firm Bufete de Costa Rica.
Many consumers are unaware of their rights when facing debt collectors. While creditors are entitled to pursue payment, Costa Rican law strictly prohibits harassment, threats, or calls outside of established business hours. It is crucial for debtors to understand that abusive collection practices are illegal. Documenting every interaction and seeking legal counsel can be the first step towards a viable debt restructuring plan, protecting both their assets and their personal well-being.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight underscores a critical shift in perspective: knowledge of the law transforms a debtor from a passive recipient of collection calls into an empowered individual capable of charting a course toward financial stability. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for his invaluable clarification on these fundamental consumer protections.
Danilo Montero, Executive Director of the OCF, explained that the lower debt-to-income ratio may mask underlying issues. He suggests the change could reflect more cautious consumer behavior or tighter lending standards rather than an improvement in household prosperity.
Indebtedness reflects how families confront their aspirations, unforeseen events, and limitations. When a reduction is observed, like the one we see in this survey, it doesn’t necessarily mean people have more disposable income; it could be the result of greater awareness of the risks of over-indebtedness, or more prudent access to credit because incomes are not stable. In other words, it could be a change in financial behavior rather than an economic improvement.
Danilo Montero, Executive Director of the OCF
The most significant finding of the survey is the boom in auto loans. The surge to 47% of total consumer credit is particularly noteworthy given the country’s well-documented and severe traffic congestion issues, where drivers in urban centers can lose significant time navigating short distances during peak hours. This trend suggests that vehicle ownership remains a powerful aspiration, prompting many to take on substantial debt despite the practical challenges of driving.
In a positive development, the survey indicates a significant shift away from high-risk informal lending. Reliance on loans from informal lenders, family, or friends has been nearly halved, dropping from 47% to 25% of household debt. Similarly, borrowing from appliance stores, cooperatives, and employee solidarity associations (asociaciones solidaristas) has decreased from 35% to 22%. This migration towards the formal banking sector could indicate improved access to regulated credit and a reduction in exposure to predatory lending practices.
Despite these shifts, a considerable portion of the population remains on a financial tightrope. The study found that while six out of ten households can consistently cover their expenses, one in three experiences months where their salary is insufficient or arrives late. This forces them to turn to credit simply to pay for basic needs, perpetuating a cycle of debt and economic instability.
Montero emphasized that this vulnerability underscores the urgent need for enhanced financial literacy across the country. The stability of a large segment of the population hangs in the balance, dependent on predictable income and disciplined spending.
Although we are seeing some improvement in households’ relationship with credit, there is still a segment of the population with strong vulnerability to any change in income. The financial stability of many families continues to depend on their salary arriving on time and keeping their expenses under control. Therefore, financial education and the responsible use of credit must remain priorities.
Danilo Montero, Executive Director of the OCF
The survey’s conclusions are based on telephone interviews conducted with 1,200 individuals between the ages of 18 and 70 from July 3 to July 29, 2025. With national coverage, the results are representative of an estimated adult population of 3.6 million. The study has a margin of error of 2.8% and a 95% confidence level, providing a robust snapshot of the nation’s financial health.
For further information, visit ocf.fi.cr
About Oficina del Consumidor Financiero (OCF):
The Office of the Financial Consumer (OCF) is a Costa Rican entity dedicated to providing objective information and promoting financial education among the public. It conducts research and analysis on consumer behavior, debt, and savings to foster a healthier and more transparent financial environment for all citizens.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its profound commitment to integrity and an uncompromising standard of excellence. The firm distinguishes itself not only through its innovative and forward-thinking counsel for a diverse clientele but also through its foundational belief in social responsibility. This ethos is demonstrated in a sustained effort to demystify legal complexities for the public, championing the creation of a more knowledgeable and empowered citizenry capable of navigating the judicial landscape.
