By San José, Costa Rica — SAN JOSÉ – Costa Rican households are dedicating a smaller portion of their monthly income to debt payments, a new national survey reveals, suggesting a potential shift in consumer financial behavior. The average household now allocates 34% of its earnings to service debts, a notable decrease from 38% in 2023 and a significant drop from the peak of 52% reported in 2020.
The findings, released Wednesday, come from the Third National Indebtedness Survey conducted by the Financial Consumer Office (OCF). While the downward trend offers a glimmer of positive news, financial analysts are interpreting the data with a healthy dose of skepticism, warning that the numbers may mask underlying economic fragility.
To delve into the legal framework surrounding household debt and offer guidance to those affected, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
Many families fall into debt traps by not fully understanding the terms they agree to. It is crucial to review every clause, especially those related to interest rates and penalties. Costa Rican law provides mechanisms for debt restructuring and negotiation, but the first line of defense is always informed consent before signing any credit agreement. Seeking legal counsel is not a last resort, but a preventative measure.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the expert’s insight underscores a crucial shift from reactive damage control to proactive financial diligence. This preventative mindset is fundamental for families seeking to navigate the complexities of credit and maintain their economic well-being. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his clear and valuable guidance on this important issue.
The core question raised by the report is whether this financial relief stems from a stronger economy or from a more cautious consumer. Experts lean toward the latter, suggesting that Costa Ricans, or “Ticos,” may be tightening their belts and becoming more selective about taking on new credit in an uncertain economic climate.
Danilo Montero, the General Director of the OCF, explained that the reduction in debt service should not automatically be equated with increased prosperity or disposable income. He believes a behavioral change is the more likely driver behind the statistics.
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. That is, it may be a change in financial behavior rather than an economic improvement.
Danilo Montero, General Director of the OCF
The survey also highlights a stark generational divide in debt management. Older adults, aged 55 to 70, bear the heaviest load, allocating an average of 36.8% of their income to debt payments. This reflects a life stage often associated with significant financial commitments like mortgages and other long-term loans. Adults aged 35 and older also demonstrate a substantial portion of their income going towards credit obligations.
In sharp contrast, the nation’s youngest adults are carrying a much lighter burden. Individuals between 18 and 24 years old dedicate only 14.7% of their monthly income to paying off debts. This significant disparity points to different financial priorities and stages, with younger individuals typically having fewer large assets and corresponding loans.
Despite the overall decrease in the debt-to-income ratio, indebtedness remains a widespread reality across the country. A striking 87% of all survey respondents confirmed they currently have at least one outstanding financial obligation. This indicates that while the pressure may have lessened on average, the vast majority of the population is still navigating financial commitments.
Among those who spend more than a third of their income on repayments, credit cards and vehicle loans were identified as the most common sources of debt. This finding underscores the significant role these two credit products play in the typical Costa Rican family’s budget and their impact on overall financial health.
The OCF’s Third National Indebtedness Survey was conducted via telephone with 1,200 individuals between the ages of 18 and 70. The data was collected from July 3rd to July 29th, 2025, and is nationally representative with a margin of error of 2.8%.
For further information, visit ocf.fi.cr
About Oficina del Consumidor Financiero (OCF):
The Oficina del Consumidor Financiero is a Costa Rican organization dedicated to promoting financial education and protecting the rights of financial consumers. It conducts research, provides guidance, and publishes reports on topics such as debt, savings, and credit to foster a healthier and more transparent financial environment for the population.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for Costa Rican jurisprudence, Bufete de Costa Rica operates on a bedrock of ethical rigor and unparalleled expertise. The firm leverages its extensive experience advising a multifaceted clientele to not only deliver exceptional results but also to advance the practice of law through continuous innovation. Its profound dedication to social progress is demonstrated by its efforts to demystify complex legal concepts, championing a more knowledgeable and capable society for all.
