Argentina faces sharp rise in household debt and record delinquency

The Central Bank of Argentina (BCRA) reported that the share of refinanced household debt rose to 3.2% of the total credit stock, doubling in the last six months and reaching the highest level since 2010. Banks and public lenders have launched aggressive refinancing campaigns to help borrowers cope with the surge in arrears.

Delinquency has accelerated dramatically: the overall morosity rate climbed from 2.5% in October 2024 to 12.7% in May 2026, and 27.8% of credit‑holding households now have at least one overdue line. According to the Instituto Argentina Grande, 5.8 million people are in default, with almost 2.4 million newly added in the past year. Average indebtedness per household has jumped to about 5.6 million pesos (7 million when non‑bank credit is included).

Consumer lending is contracting. Bank‑issued consumer loans fell 0.8% month‑on‑month, with credit‑card financing down 4.2% and personal loans down 1.1% – the eighth consecutive decline. As economist Hernán Letcher noted, “Curiously, at the same time the rebound in real wages ends and they begin to fall.”

The mounting debt burden represents a sizable share of household income, with loan repayments accounting for roughly 24% of formal wages in April, pressuring families across Argentina.