Inflation is choking the financial stability of Argentinean households.
Over 90% of Argentinean homes are currently in debt, with 26% of their financial burden corresponding to credit card-related loans, according to a survey conducted by the Center for Grocers and Retail Traders.
Approximately 7% of Argentina’s population has found itself forced to borrow money in order to pay rent. Some are borrowing money to cover other essential expenses, such as taxes, clothing and gas.
About 9% of the 4,200 Argentineans surveyed said that they had to secure loans from banks to meet their financial obligations.
Not all are depending on banking to pay their bills, however. About 10% of the surveyed said they borrowed funds from family and friends.
The financial pressures have grown so large in Argentina that some families find themselves using credit to pay credit card debt. Economist José Castillo warned that such a strategy could lead households to dig themselves into a deeper hole.
However, it seems as if there isn’t much Argentineans can do about the situation. Most of their debt has been used to buy essentials, such as groceries, which have seen their prices skyrocket due to ridiculously high inflation.
The survey revealed that 35% of respondents hold only a single debt, 57% hold two to three debts, and the remaining 8% have more than three financial obligations.
Additionally, 55% of households surveyed believe they will be able to pay their debt within the next year, with 23% anticipating repayment by the end of 2024. However, 18% expressed doubt that they would ever be able to fully pay.
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