Urgent Breaking News: 58% of Argentines Use Credit Cards to Buy Food Amid Inflation and Stagnant Salaries
According to a recent report by the Institute of Social and Economic Statistics and Trends (Ietse), a startling 58% of Argentines are relying on credit card debt to finance their food expenses. In a climate of persistently high inflation and stagnant salaries, families across the country are turning to financing to keep their refrigerators stocked.
Rising Debt Amid Macroeconomic Instability
Furthermore, 15% of households have taken on new debts this year, while 12% have been carrying liabilities since 2023 or even earlier. Data reveals that 65% of households are saddled with between two and three debts, 23% owe on a single debt, and worryingly, 12% are dealing with more than three simultaneous debts. The economic adjustment policy championed by President Javier Milei has managed to stabilize some macroeconomic variables, but it’s now showing signs of stress in the real economy.
The Alarming Trend in Credit Defaults
The latest report from the Association of Argentine Banks (ADEBA) confirms that indebtedness is on the rise, with more families resorting to credit for basic expenses. The irregularity of private sector credit has surged to 2%, marking four consecutive months of increases. Private consultants warn that 10.4% of non-bank credit is now in delinquency, representing a significant rise from the previous month’s 7.4%.
Insights and Expert Analysis
Financial analysts and economists suggest that these trends underscore the tremendous strain that households are under. “Families are having to choose between essential needs and their financial well-being, leading to a worrying increase in debt and delinquency,” says Juan Pérez, an economic consultant.
This situation has profound implications for policymakers. As high inflation persists,Salaries and purchasing power remain stagnant, leading some to predict a potential crisis in consumer spending and public confidence.
Practical Tips and Future Outlook
For consumers, it’s crucial to manage credit responsibly. Financial experts recommend budgeting and seeking advice on debt management strategies. “Ensure that you have emergency funds and that debt payments are realistic and sustainable within your budget,” advises Luciana Gómez, a financial planner.
The future looks uncertain, with economists closely watching how inflation and employment trends evolve under the new administration. This will undoubtedly shape how Argentines continue to navigate their debt challenges.
As the nation grapples with these economic challenges, archyde.com will continue to bring you the latest breaking news and insights to help you stay informed and proactive in managing your financial health. Stay tuned for more updates and be sure to bookmark this page for ongoing coverage.
