Argentina's household debt surge drives record refinancing and rising defaults

Argentina faces a deepening household debt crisis. Public banks such as Banco de La Pampa have already refinanced more than one trillion pesos of credit‑card debt, while the Central Bank reports that refinancings now account for 3.2% of total household credit – the highest level since 2010. The average debt per person has risen to between $5.6 million and $7 million, with many households allocating a large share of income to debt service.

A private study estimates that about 6.8 million Argentines are now classified as delinquent, with a 12.7% default rate on loans and credit cards – the highest in 19 consecutive months. Over 90‑day arrears affect roughly 27% of borrowers, limiting their access to new credit and pushing them toward higher‑cost non‑bank lenders.

At the same time, the Central Bank’s monthly report shows a decline in consumer credit use in June, with personal loans down 1.1% year‑on‑year and credit‑card financing falling 4.2%. Meanwhile, the government is evaluating a new housing‑credit scheme to revive construction, but details remain under review.