Argentines’ debt with digital wallets hits an all-time high as ‘irrecoverable’ loans double in 2025

[lemonade]

I keep reading about debt loads of Argentines. Almost everyone I talk to here is living on the edge and up to their eyeballs in debt. And it seems like it is getting worse each month. Total debt up to 140% of the average household income. Not sure this is going to turn out well.

Argentines’ debt with digital wallets hits an all-time high as ‘irrecoverable’ loans double in 2025 - Buenos Aires Herald

Families allocate 33% of their income to repay virtual wallet and non-bank loans, according to a study based on Central Bank data

buenosairesherald.com

 

[Bettina]

I know many that are in debt and buying items with many payments. Even kitchen appliances. A friend told me they have a bankruptcy system but it doesn't work well. I am reading about many companies that are also in debt. I read on this board of many wineries that are going bankrupt or that took out many loans and now can't pay them off.

 

[Finance Prof]

I know many that are in debt and buying items with many payments. Even kitchen appliances. A friend told me they have a bankruptcy system but it doesn't work well. I am reading about many companies that are also in debt. I read on this board of many wineries that are going bankrupt or that took out many loans and now can't pay them off.

Nothing with the legal system here works very good or is very very slow. It's much different here in Argentina vs. the USA or other places. In the US a bankruptcy is a fresh start. In Argentina it's more like structured damage control. Everything is more complicated here.

It's clear to me people are tapped out. Look at people cutting back on wine and beef and spending. Consumption is down all over the place. Figure we are a few years from flipping again. Always the same here.

 

[Stan]

Nothing with the legal system here works very good or is very very slow. It's much different here in Argentina vs. the USA or other places. In the US a bankruptcy is a fresh start. In Argentina it's more like structured damage control. Everything is more complicated here.

It's clear to me people are tapped out. Look at people cutting back on wine and beef and spending. Consumption is down all over the place. Figure we are a few years from flipping again. Always the same here.

I agree. It's only a matter of time. That's the thing about Argentina. If you wait long enough it gets cheap again.

 

[jbeas176]

i remember everybody baling around 2009 on real estate. look at it now. crazy place i love so much because its unpredictable. if you can rool with the flow its fun to be apart of. i have learned so much about economics that would never happen in the ol usa. i just call the everyday problems as argentina moments

 

[JonJLA]

i remember everybody baling around 2009 on real estate. look at it now. crazy place i love so much because its unpredictable. if you can rool with the flow its fun to be apart of. i have learned so much about economics that would never happen in the ol usa. i just call the everyday problems as argentina moments

I bought my first two apartments in 2004. I still own one of them and sold the other one in 2017 for a huge premium to what I purchased it at.

There are 4 kinds of countries: developed, undeveloped, Japan and Argentina.

 

[Sylvia]

Debt payments keep going up. 🙁

Crece el endeudamiento de las familias: ya destinan un tercio de sus ingresos al pago de compromisos con entidades no bancarias

El peso del crédito no bancario sobre los ingresos familiares creció de forma sostenida, acompañado por un aumento de la morosidad

www.infobae.com

 

[Finance Prof]

 

[mc kenna]

No denying people are falling behind on their loans. Facts are facts.

1-Delinquency on personal loans WITH BANKS (reached 12%) hit a record in December, once again, since 2010 when the latest BCRA series begins.

2- Delinquency on debts WITH virtual wallets and financiers also hit a record in December, once again. Of all those who took out this type of debt, 25% can't pay the installments on time and in full.

3- Loans of up to 1 million pesos are the ones that can be paid the least! Nearly 25% of those loans are delinquent.

4- All consumption indicators show a decline. ALL OF THEM. There are not any exceptions.

5- The interest rate isn't just high but volatile! The market is starting to feel impatient about the rate's volatility, the recession in the domestic market, and the dollar that's at the same low level as Dec 2017.

 

[import export]

To be fair debt levels pretty much everywhere are going up. Look at the stock market in the US.


Margin debt surged +$53 billion in January, to a record $1.28 trillion.

This marks the 9th consecutive monthly increase.

YoY, margin debt jumped +$342 billion, or +36%, the biggest increase since the 2021 meme stock frenzy.

Furthermore, margin debt as a % of real disposable personal income exceeded 6.0% for the first time on record.

The percentage is now nearly 3 TIMES higher than the 2000 Dot-Com Bubble peak.

Market-cap adjusted margin debt has also hit an all-time high.Investors are using more leverage than ever.

 

[Used]

Looks like a huge amount of Argentines are struggling to pay the bills.

 

[Peabody]

i remember everybody baling around 2009 on real estate. look at it now. crazy place i love so much because its unpredictable. if you can rool with the flow its fun to be apart of. i have learned so much about economics that would never happen in the ol usa. i just call the everyday problems as argentina moments

Argentina doesn't seem like it has anything to do with normal economics. Doesn't seem like anything works here well. Milei's experiment doesn't seem like it is going well.

There is record breaking delinquency at Frávega, Cetrogar, Megatone, and Coppel: up to 70% of customers cannot pay their installments according to reports.

The other side of the model? Loans with CFT of up to 880% annually. It will be interesting to see if this works out. But what is going to turn Argentina around? Doesn't look like there are many investments going on in Argentina. Every day I look at the news it's mostly negative news. Job losses, companies closing, people losing jobs, people with 3 jobs struggling to get by.

 

[Petey]

Argentina doesn't seem like it has anything to do with normal economics. Doesn't seem like anything works here well. Milei's experiment doesn't seem like it is going well.

There is record breaking delinquency at Frávega, Cetrogar, Megatone, and Coppel: up to 70% of customers cannot pay their installments according to reports.

The other side of the model? Loans with CFT of up to 880% annually. It will be interesting to see if this works out. But what is going to turn Argentina around? Doesn't look like there are many investments going on in Argentina. Every day I look at the news it's mostly negative news. Job losses, companies closing, people losing jobs, people with 3 jobs struggling to get by.

View attachment 10529

View attachment 10530

I guess we will know within 2 years before the next election. I just don't know who will challenge Milei? Many people seem like they aren't happy with Milei but there is no other option.

 

[ElQueso]

Argentina doesn't seem like it has anything to do with normal economics. Doesn't seem like anything works here well. Milei's experiment doesn't seem like it is going well.

There is record breaking delinquency at Frávega, Cetrogar, Megatone, and Coppel: up to 70% of customers cannot pay their installments according to reports.

The other side of the model? Loans with CFT of up to 880% annually. It will be interesting to see if this works out. But what is going to turn Argentina around? Doesn't look like there are many investments going on in Argentina. Every day I look at the news it's mostly negative news. Job losses, companies closing, people losing jobs, people with 3 jobs struggling to get by.

View attachment 10529

View attachment 10530

Yep. Just saw that on the news.