Argentina faces rising household debt and fintech investigations

Argentina is facing a significant surge in household debt and delinquency rates. The Financial Times reported that a record number of households are struggling to make payments, with 16.3% of individual credit being at least three months overdue. This trend is attributed to radical economic shifts under President Javier Milei, including austerity measures and a transition from high inflation to positive real interest rates that have exceeded triple digits.

In the Buenos Aires province, authorities are taking action against fintech companies and digital wallets. Following approximately 2,240 complaints in the first half of 2026, the provincial government has opened investigations into several major players, including Mercado Pago, Ualá, and Naranja Digital. The probe focuses on potential violations of consumer protection laws, specifically regarding exorbitant interest rates, lack of transparency in total financial costs, and aggressive debt collection practices.

Security Minister Javier Alonso also warned of the rise of informal usury in popular neighborhoods, noting that some families risk losing their homes due to predatory lending cycles. While the national government views high interest rates as a tool for economic stabilization, provincial officials and social groups have raised concerns regarding the social impact of these financial conditions.