Argentina's household debt surges as delinquency hits record

Analysts report that household delinquency in Argentina has risen sharply, reaching about 16 % of families in May and affecting roughly one‑third of all debtors. Data from Analytica and the consultancy 1816 show that nearly 7 million people—about 30 % of the adult population—are unable to meet their loan obligations, with the highest default rates among those under 30 years old (42.8 % for ages 18‑25).

Total household debt has climbed to approximately 75 trillion pesos, equivalent to 6.6 % of GDP, driven by high interest rates (real rates around 58 %) and inflation near 30 %. Credit growth outpaced income, leading families to allocate up to 30 % of earnings to debt service. The government’s debt‑repayment plan for 2026‑2027 foresees borrowing of about $19 billion, but the escalating morosidad poses a systemic risk to the broader economy.

Youth are particularly affected, with gambling and fintech lending contributing to higher arrears. Experts warn that refinancing schemes offered by banks will not resolve the underlying issue of millions of households being excluded from formal financing.