Argentina faces rising debt delinquency as millions struggle to afford basic needs

Argentina is facing a severe surge in household delinquency, with approximately six million people in formal default amid a deepening economic crisis. National data indicates that nearly 20 million people carry personal debt, driven largely by the inability to afford basic necessities such as food, medicine, and utilities.

Regional reports highlight extreme disparities in delinquency rates. In Catamarca, the rate has reached 34.34%, with residents increasingly using credit to cover primary expenses like food. Other provinces showing high levels of default include Santa Cruz (26.75%), La Rioja (25.44%), and San Luis (25.12%).

The crisis is characterized by a cycle of debt where many consumers take on new loans simply to service old ones. Approximately 26% of debtors use credit primarily for food purchases. Furthermore, debt restructuring efforts have seen limited success, as roughly 30.5% of those who refinanced their debts fell back into delinquency. As mainstream credit becomes less accessible, vulnerable populations are increasingly turning to unregulated lenders.