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More Argentines turn to apps for loans as debt stress hits record
AOL.com • • world
Key Points:
- Delivery riders in Buenos Aires often resort to costly fintech loans, including those offered by their delivery apps, to pay fines for impounded motorcycles, creating a cycle of debt binding them to gig work.
- Argentina's fintech lending sector has surged twentyfold in recent years, driven by rising living costs, government austerity, and improved economic stability under President Javier Milei's reforms, despite high interest rates often exceeding 100%.
- Nearly 6 million Argentines are over 90 days behind on loan repayments, with bad debt rates reaching a record high of 12.8%, as borrowers struggle with sharply positive real interest rates and costly credit products.
- The Milei administration has resisted calls for state-backed debt relief, framing household indebtedness as a private issue, even as rising personal debt and precarious employment pose political risks ahead of the 2027 elections.
- Fintech companies provide credit to those excluded from traditional banking due to unstable incomes, but advocacy groups warn that many people are incurring debt just to cover basic living expenses amid stagnant wages and high inflation.
