Argentina sees surge in household credit delinquency

Argentina's household debt burden has sharply intensified. An economic study shows that credit arrears jumped from 2.9% in February 2025 to 11.2% a year later, putting more than 6.3 million adults – about one in six – in serious delinquency on personal loans, credit cards and consumer loans.

The crisis is driven by falling real wages and a rapid rise in utility tariffs that have more than doubled, eroding disposable income. Over 40% of borrowers under 25 years old now struggle to meet payments, up from roughly 25% a year earlier, as youth unemployment rose sharply. Regional data highlight Santa Cruz as the hardest‑hit province, where formal employment fell 16% and credit irregularities surged by 13.8 points. While the lagging delinquency does not yet pose a systemic risk to banks, it signals a growing financial strain on Argentine families.