Millions of Argentines face debt trap amid deregulation, rising costs

Nearly 6 million Argentines are now at least 90 days behind on debt payments, with arrears jumping from 4.2% to 17.5% of the population since late 2023, as President Javier Milei's deregulation pushes borrowers toward fintech lenders charging rates topping 1,375% annually. One resident, Andrea, saw a $130 bill balloon to $4,500 in debt within a year after turning to a loan from Mercado Pago to cover basic costs.

Consulting firm Management & Fit finds a third of indebted Argentines are borrowing to pay for food, while fewer than 10% did so buying appliances, directly contradicting Milei's public claim that debt stems from people buying televisions to watch the World Cup. Opposition lawmakers have filed more than 30 bills to address the crisis, all rejected so far by Milei's party, whose lawmaker Lilia Lemoine says managing the 'microeconomy' isn't government's job.

Grassroots groups like Movida Ciudad and Endeudados Organizados report surging membership as citizens like teacher Elena Trotta, earning about $600 a month, struggle to avoid falling further behind. Milei maintains he 'kept his promises' and won't budge on fiscal policy ahead of his 2026 reelection bid.

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