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Argentine Families Borrow for Basics as Loan Delinquency Hits Post-2009 High

Soaring service costs are forcing families to take on debt for essentials.

Overview

  • A UBA study released Thursday found household loan delinquency at 10.6% and consumer credit delinquency at 12.1%, topping levels seen since 2009, including the pandemic.
  • Since December 2023, services prices rose about 362% versus roughly 170% for goods, pushing the services share of paychecks to around 42%.
  • Consumer credit has grown 57% since the start of the Milei administration, reflecting borrowing to cover daily expenses and raising the risk of costly refinancing cycles.
  • Supermarket payments have shifted toward credit, with credit cards up to 43% of purchases as debit and cash fell and e‑wallets doubled to 15%.
  • A private survey cited by El Ancasti found 57% of middle‑income households now borrow to make ends meet, with 83% using debt for food and 60% for basic services.