In Argentina today, we face a worrying paradox: while INDEC reported a growth of private consumption of 11.6% in the first quarter of 2025, our families are increasingly indebted. It is said that 3 out of 10 Argentines spend more than you earn. This situation, which for many is a daily struggle to reach the end of the monthreveals a deeper problem.
The figures are clear: an alarming 91% of Argentine households have some type of debt. Much of these debts contracted in 2024, driven by devaluation and strong inflation that eroded our purchasing power. For many families, the debt ceased to be a transient tool to become a structural phenomenon.
The worrying thing is that indebtedness is not for “waste”, but, in many cases, to meet basic needs. 58% of credit card debts are used to buy food, unequivocal sign of impoverishment. This effort to live above income generates deep financial stress, affecting our mental health.
The mirage of the “cheap dollar.” The growth of reported consumption is not reflected in supermarkets or shopping malls. How do you explain? The averages deceive. Per capita consumption grew just 1.2%. The import and tourism boom abroad by the dollar torn on the global figure. This consumption, which is counted within GDP, does not benefit the majority, but deepens inequality: while a minority sector consumes in dollars, the working class sees its consumption fall in pesos. For 64% of the poorest, not to reach the end of the month is the standard.
The situation is aggravated by increasing delinquency. Credit cards reached a 4.2% record in March (maximum in 3 years) and personal loans reached 5.6%. This exerts enormous pressure on the available income, representing almost 19% of the average family budget. 56% of households allocate between 40% and 60% or more of their monthly income to the payment of debts. Many fall into “circular debt”, refining creditswhich prevents paying previous liabilities.
This is not about judging indebtedness out of necessity, but about managing it with conscience and responsibility. It is relevant to make a budget, know well the income, fixed and variable expenses. Likewise, you have to blame aside and assume responsibility to act and modify what does not work. It is also relevant to understand interest rates to prioritize debt payments with higher rates. The monthly credit card payment should not exceed 30% of the income. Finally, it is relevant to have an emergency fund for unforeseen situations.
In this regard, financial education is a powerful tool to take control of our economy and our life. When talking about money openly and acquire knowledge, we contribute not only to our individual well -being, but also to the economic health of our country. Family indebtedness in Argentina is complex, but with conscience, responsibility and the appropriate tools, we can transform this reality into an opportunity for a quieter and more financially solid future.
*Gabriela Totaro is Advisor on Finance and Expert in Financial Education.
By Gabriela Totaro
