Full Breakdown
Rising Household Debt Tests President Javier Milei’s Support
9/10/2026, 9:54:41 AM
Background & Economic Context
Since taking office in late 2023, President Javier Milei has cut the fiscal deficit and reduced annual inflation from a 2024 peak of 289 percent to roughly 34 percent by July. The tighter monetary stance has lowered inflation-driven wage hikes, while steep cuts to subsidies for gas, electricity and transport have pushed household bills up faster than incomes. Consequently, many Argentines, especially those under 25, are turning to high-interest digital payment apps and short-term loans to cover basic expenses.
Data & Statistics
- The Centre for City Studies, an Argentine nonprofit that tracks debt using central-bank data, reports that nearly half of Argentina’s 45 million people owe money and more than 5 million are behind on payments.
- Borrowers under 25 have the highest delinquency rate at 37.6 percent.
- Martín Taborda, an 18-year-old law student, is $1,300 in debt after borrowing just over US$100 through a mobile app in 2024; his balance later grew tenfold as interest accrued.
- A poll by Argentine pollster Zuban Córdoba, conducted July 22-26, found Milei’s approval at 33 percent, down from 49 percent in December 2025, with a margin of error of ±2.5 percentage points.
Official Statements & Responses
President Milei has dismissed calls for government relief, characterising unpaid debts as a private matter between borrowers and lenders. Speaking to investors in Rosario, he blamed “irresponsible spending,” noting that some citizens bought televisions for the World Cup and then failed to repay.
Opposition lawmakers, including left-wing deputy Nicolás del Caño, have scheduled a special session of Congress to debate interest-rate caps and other measures to help debtors renegotiate loans. Labor unions and the advocacy group Organized Debtors plan to protest the debate, arguing that the debt surge reflects a broader economic crisis.
Verbatim Quotes
- “There’s hardly any work for anyone in this country right now,” — Martín Taborda
- “There was a time when people took out loans to buy a house, an apartment, a car,” — Vanesa Bittoco, the advocate
- “They’re going to have to provide a solution,” — Vanesa Bittoco, the advocate
These statements illustrate the personal hardship faced by young borrowers and the mounting political pressure on Milei as household debt continues to rise.