Eight in ten Argentines barely make it or fall short by the end of the month, survey finds

A recent survey reveals that nearly eight out of ten Argentines either barely make it or fall short on their expenses by the end of each month, illustrating a state of financial stress and rising debt. Conducted by consultancy Brain Network in September, the study categorizes respondents into three groups: the "Jugglers" making up 57%, those who manage to keep up with payments through frequent adjustments and a fragile balance; the "Up to date" at 22%, who are more stable in their financial situation; and the "Overwhelmed" comprising 21%, who struggle due to insufficient income and recurring arrears.

The majority of respondents, 79%, own a credit card. Those who have trouble paying employ various strategies, including cutting spending (31%), borrowing from family or friends (23%), delaying payments (17%), and taking out loans (16%). Among those with bank debts, 60% faced difficulties paying in the past six months, as did 65% of those owing digital finance platforms. Interestingly, 21% of the "Overwhelmed" group took out a new loan to cover existing debts.

Brain Network's Lionel Holzman warned that the market is not in default but rather individuals are juggling their finances. He suggested that lenders should offer refinancing before the situation worsens. However, 45% of those in arrears claim they have not received any refinancing offers. President Javier Milei recently dismissed concerns about people struggling to make ends meet, stating, "If they really run out of money on the 20th, how do they live ten days without eating or drinking?" according to the survey, 44% of respondents believe their situation will improve next year, 36% expect it to stay the same, and 20% foresee it worsening.