Argentina locals taking loans to afford food

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Economic pressures hit households

In Argentina, rising living costs are forcing citizens to take loans, sell belongings, and rely on credit cards to cover basic expenses, including food. Diego Nacasio, 43, a hardware store salesman in Florencio Varela, says he and his wife often run out of money by the middle of the month, prompting extra work and borrowing to get by.

Widespread financial strain

Reports show nearly half of Argentinians are relying on savings, selling assets, or borrowing to make ends meet. Sociologist Violeta Carrera Pereyra noted the troubling trend, highlighting that even employed individuals are taking loans to buy essentials rather than large purchases like cars or appliances.

Uneven economic growth

President Javier Milei’s austerity plan, aimed at fiscal balance and boosting reserves, has produced mixed results. While some sectors like banking and agriculture have grown, others, including manufacturing and commerce, have declined. Food consumption has dropped 12.5 percent, leaving many households struggling despite official claims of economic recovery.

Inflation and income disparities

Though inflation has been officially reduced, critics argue that real prices for essentials such as food, electricity, and fuel continue to rise. Many salaries remain stagnant or below inflation rates, further reducing purchasing power. Carrera Pereyra adds that these shifts have widened inequality, with some citizens able to buy more luxury items while others struggle for basic necessities.

Everyday survival challenges

Citizens describe managing monthly expenses as an obstacle course. Multiple jobs, borrowing, bulk purchases, and credit reliance have become normal. Teacher Veronica Malfitano described the stress of using credit cards for food and taking loans just to cover daily living costs. Official data shows nearly half of supermarket purchases are now paid with credit cards, while unpaid personal loans have reached record highs.

Calls for sustainable solutions

Economics analyst Lucia Cavallero stresses the need for structural change, noting that temporary debt-relief measures are insufficient. She advocates for wages that align with the cost of living to prevent families from needing loans for essentials.

A desperate hope

Despite the hardship, many Argentinians remain grateful for what they have. Nacasio reflects, “At least we own our house. If we didn’t and had to pay rent, I don’t know what we would do. Things cannot continue like this.”


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