Argentina’s Loan Apps Fuel Debt as Delinquencies Rise

Argentina’s worsening household finances are driving millions of people—including gig workers—to rely on digital loans to pay for food, rent, utilities and work-related costs. Couriers and drivers may borrow to recover impounded vehicles, while some delivery platforms provide loans to their own workers at annual rates above 100%. Household debt has reached record levels, with nearly 6 million borrowers at least 90 days behind on payments and about 13% of families carrying debt; some borrowers face extremely high interest rates that can deepen a cycle of indebtedness. The surge in fintech lending reflects both easier access to credit as inflation begins to slow and the pressure created by President Javier Milei’s austerity policies, including subsidy cuts that have reduced household purchasing power. Analysts warn that rapid digital lending, limited credit assessments and opaque algorithms could increase risks for consumers and the broader financial system.