Debt in Honduras

Banks, state banks, credit-card issuers, financial companies, savings and loan associations, pension institutions, cooperatives and other providers can offer credit in Honduras. CNBS supervises authorized financial institutions, consumer transparency, the Central de Información Crediticia (CIC) and the Unidad de Protección al Usuario Financiero (GPUF). CONSUCOOP supervises cooperatives. Microfinance providers outside the CNBS system also operate, but their supervision and consumer protections can differ, so check the provider's authorization and current status before signing. A lender normally requests an application, identity and income documents and a solvency or risk assessment. Credit approval is not automatic. Before signing, the institution should provide the contract and the applicable interest rate, Costo Anual Total (CAT), installment amount, term, moratory rate, total debt, amortization schedule, collection arrangements and possible legal actions. A variable-rate contract can change the payment or total cost. An aval, fiador or codeudor may also become liable if the borrower does not pay. The real cost is higher than the advertised installment when interest, CAT charges, commissions, guarantees or other security, moratory interest and enforcement costs are added. A longer term usually lowers each installment but increases total interest. CNBS's Conoce y Compara service helps compare available credit conditions. Total or partial early repayment is allowed under CNBS consumer rules, with a proportional reduction of interest and no prepayment penalty. A workable debt plan starts with a budget showing income, essential expenses, every installment and each due date. Paying the highest-rate debt first while maintaining minimum payments on other debts can reduce interest, provided the household can still meet essential expenses. Keep contracts, statements, payment receipts and written agreements. Contact the lender before arrears begin and compare the total cost of any readecuación or refinancing with the existing debt rather than comparing installments alone. Mora means that a payment was not made by its due date. A borrower should contact the lender in writing and request a documented restructuring or refinancing review. If the institution does not resolve the issue, file a Hoja de Reclamación with that institution; it has up to 10 business days to respond. An unsatisfactory response or no response can be taken to CNBS through the GPUF or its SGE complaint process, also within the applicable 10-business-day period. Credit-card holders who cannot keep up with payments may be able to request an Arreglo de Pago under the Ley de Tarjetas de Crédito. The issuer converts the balance into a personal loan and removes the card, provides the new contract within a maximum of five days and can set a term of up to 60 months. The arrangement does not add a commission, prime or extra documentation requirement, and the borrower generally cannot obtain a new credit card until two-thirds of the obligation has been paid. Interest and payment allocation rules are subject to the current law and CNBS and BCH provisions; Decreto 34-2025 revised some of those rules. The Ley de Alivio de Deuda para Trabajadores can help highly indebted public- and private-sector workers consolidate debts owed to regulated or non-regulated financial entities, casas comerciales and colegios profesionales. Financial institutions, cooperatives and pension institutions may provide the consolidation, which is repaid through an authorized payroll deduction. The worker may choose the lender and may repay early without a charge, but approval, terms and rates are not automatic and depend on the provider's policy. CNBS states that consolidated credit is classified as category I in the CIC and private credit bureaus under the applicable rules. The CIC records information reported by lenders about debtors, codebtors, avales and fiadores. A borrower or authorized representative may request the report, and private bureaus such as TransUnion and Equifax also provide credit information. According to the CNBS FAQ, positive history remains permanently, paid negative information remains for two years, and unpaid debt can remain visible for a maximum of five years counted from 90 days of delay. After repayment, retain the cancellation or settlement proof and check both the CIC and relevant private-bureau records for correction; payment does not erase a negative record immediately. Extrajudicial collection is permitted within the contract and the law, but collection agents may not threaten, humiliate, defame or intimidate the debtor, send notices that appear to be judicial claims or direct collection contact to unrelated third parties. A written extrajudicial agreement should be given to the debtor and the relevant guarantors. If a creditor has a liquid, due and enforceable monetary title, it can seek judicial execution. The process can include a payment demand, limited opposition, apremio, attachment and sale of assets. A secured debt may lead to enforcement of a pledge or mortgage. A monitorio procedure is available for documented monetary debts up to L200,000; the Poder Judicial states that a filing for L5,000 or less does not require a lawyer, while amounts above L5,000 require one. Honduras has a formal debt system, but the reviewed official sources identified no general household insolvency or discharge procedure. A business person may instead fall under the Código de Comercio rules distinguishing quiebra from suspensión de pagos or convenio preventivo. A preventive proposal can combine a reduction of the debt with a payment extension, but it requires a court filing and supporting documents. Case-specific legal advice is appropriate when enforcement, secured property or business insolvency is involved. CNBS financial-inclusion reporting documents rural access gaps. At December 2024, the household debt-service-to-income indicator was 39.5% and household mora was 3.1%; consumer credit mora was 4.4%, credit-card mora 2.8% and housing-credit mora 2.9%. These are national or sector indicators, not a calculation of an individual's ability to pay. Debt problems therefore require checking the specific contract, provider, income, collateral, guarantors and payment history.