Delinquency rates on Argentine consumer loans and credit cards shooting up

[Piranha]

In doing some research it is clear to see that consumer debt (personal loans, credit cards, et al) is shooting up. When you talk to people they say they are at their limit. I am reading posts about banks starting loans to pay off monthly condo expenses. These are troubling signals.

When people aren't paying their credit cards or personal loans it means they are in deep trouble. These default rates are up double digits, surpassing levels not seen since 2010 when the Central Bank began tracking this data. This is on top of rising unemployment.

So all the posts talking about inflation outpacing salaries is valid and if this keeps up it is game over for Milei.

 

[Finance Prof]

Wow I had no idea delinquency rates were so high. This matches what everyone I talk to locally tell me. They are tapped out. I read the news today of banks having to give loans out just to pay HOA bills. That in a nutshell tells us how bad things are.

 

[sophos]

And those numbers are from November. Probably worse now after Christmas. People go overboard here going into debt on Christmas presents and vacations.

 

[Betsy Ross]

Interesting. I wonder what will cause genuine wage rebounds that are above inflation? Seems like companies are cutting back and laying off more vs. hiring.

 

[Uncle Wong]

I guess this explains the need for these loans to pay off condo fees!

Deudas de expensas: cómo es el nuevo préstamo para ponerse al día en 18 cuotas

Dueños o inquilinos en mora pueden pedir hasta $1.500.000.Los requisitos, cuánto se paga por mes y todos los detalles.

www.clarin.com

 

[Bettina]

And lots of stores are closing down. Places going out of business. Record levels of places that are empty. Not good.

 

[Bettina]

 

[Nasdaq]

You can see a graph here which tells the real story. It was going down but look how it is skyrocketing up on defaults.

 

[jbeas176]

i think most countries are in the same shape. it just has not burst yet. i know the usa is on the brink. mortgages and car loans with lots of credit card debt. our president will tell you it the best economy in ten years. its not and when the medicad benifits run out and the disadvantaged don’t have health care or lunches at school, say good night.

 

[Finance Prof]

i think most countries are in the same shape. it just has not burst yet. i know the usa is on the brink. mortgages and car loans with lots of credit card debt. our president will tell you it the best economy in ten years. its not and when the medicad benifits run out and the disadvantaged don’t have health care or lunches at school, say good night.

Many are in denial. But this is also why no one can have kids. Not even that they don't want them but many I know just tell me no way in hell they can afford them now.

Everything coming out now in Argentina is showing how the typical consumer is tapped out. Family debt keeps going up. This chart shows family debt with virtual wallets and it too is hitting a record high of delinquency. Typical household accumulated commitments with banks and fintech equivalent to 140% of their monthly income.

According to EcoGo consulting company, delinquency on loans from wallets and non-bank entities reached 21.4% in November, and unrecoverable loans rose to 6.4%, more than double that of a year earlier. On $12.6 trillion lent, $2.7 trillion show repayment problems, and $810 billion are already considered uncollectible.

 

[jbeas176]

they did away with the dodd franklin act. it required banks to have more reserves on the the money they lend. thanks pres. 2008 can repeat itsself

 

[jbeas176]

dodd/ franks act

 

[Edmonton]

they did away with the dodd franklin act. it required banks to have more reserves on the the money they lend. thanks pres. 2008 can repeat itsself

I have always been impressed with how Americans always seem to consume consume consume. It seems like credit cards keep lending. I recently read Trump was going to try to limit and cap interest rates at 10%. If that happens I would think banks will start to finally cut off credit. I doubt it will make sense for them without charging sky high rates.

 

[Blockchain]

I have always been impressed with how Americans always seem to consume consume consume. It seems like credit cards keep lending. I recently read Trump was going to try to limit and cap interest rates at 10%. If that happens I would think banks will start to finally cut off credit. I doubt it will make sense for them without charging sky high rates.

This will never happen. Bank lobby groups are too powerful. Doubt this could ever happen.

 

[Betsy Ross]

This will never happen. Bank lobby groups are too powerful. Doubt this could ever happen.

Agree. That is their bread and butter. Consumers paying 25% APR. It's wild how many people pay that kind of debt in America but lots of keeping up with the Jones. That is happening here too. My doorman complains all the time how he can't make it month to month and he is taking a nice long month trip to Mar del Plata this month. I joked with him that he is not doing too bad. But he said he is using credit for it.

 

[Bill]

Interesting seeing the surge in defaults from Argentine households from 2.5% in late 2024 to 8.6% in November 2025. The drop resulted from inflation eroding debt values and accounting adjustments instead of genuine income gains. Rates rebounding sharply alongside 2025 credit growth expansion.

BCRA's own numbers verify that this rate is a 16 year high driven by personal loans and credit cards and interest rates exceeding 100%

The government has made progress cutting spending but many are sinking into the abyss. Look at the necessary loan programs for owners to pay their monthly condo bills. Never before have banks had to do that. Much like Milei's plan it all depends on borrowing more money.

This isn't going to end up well. The thing about Argentina if you wait long enough things change. Usually for Argentina this means what goes up must come down.