The CBA Retailers’ Centre reported that 9 out of 10 Argentines are in debt. The largest percentage of debts are with credit cards.
How Argentines deal with their financial debts.
9 out of 10 Argentines are in debt. According to a report by the CBA Retail Merchants Centrea 9% from them they take Bank credits to be able to meet its financial commitments.
The largest amount of debts are presented in the Credit cards with 26%, then followed by the family debts with 10%, 9% with banks8% in services, school and taxes7% rentals and credit and 5% with prepaid after the increases it had during 2024.
9% of Argentines take out bank loans to pay off debts
In dialogue with C5Nthe Economist Jose Castillo He explained the situation and said that “more than half of the population went into debt since the end of last year until now to buy food.” Of that 9% who took out bank loan debt, used it to pay off the credit card balance.
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In this regard, he explained that when you leave a 100% balance on the card, you run these risks. “There are people who accumulate an unpaid balance with this, The bank offers a loan and people take it to pay off their card debt.“, he detailed.
Another debt is with rents, more specifically with expenses: “The expenses are terrible. The astronomical increase in rents, what is happening is terrifying and those who have to renew their rent annually have a 247% increase, that is, they paid $100 thousand and now it is $350 thousand. Those who are under the new law have a 60% adjustment. In CABA, 80% are apartments, everything pays expenses and they have skyrocketed in a terrifying way.”.
Argentina’s economic future
Regarding the country’s economic future, the economist said: “The government is playing at continuing the adjustment no matter what, having passed the debt from the Central Bank to the Treasury. The money that the banks collected monthly was $600 billion, no more is being issued, but they will continue collecting it. The adjustment is going to have to be bigger”.
Finally, He explained that the Government will wait for Donald Trump to take office as president: “Argentine debt levels are not sustainable and that is Argentina’s structural problem. The debt is unpayable. Now the problem that the government has is that the next payments cannot be paid. It does not have a financing grade. We are waiting to see if Trump wins in November, if he takes office in January and puts pressure on the board of the fund.”
Source: Ambito
