Argentine courier Albert Quintero highlights how rising household debt is impacting gig workers and families across the country.
Argentine courier Albert Quintero earns an average of 70,000 pesos ($46) per day delivering takeaway meals. However, recovering an impounded motorcycle can cost around 140,000 pesos ($90) in fines and fees, a bill many workers cannot afford without borrowing.
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This has led many gig workers to turn to fintech loans, including credit offered by the same delivery platforms they work for, despite interest rates reaching triple digits. Fintech lending in Argentina has expanded 20-fold to 10 million individual loans. While inflation has slowed and economic stability has improved, government austerity measures have squeezed household budgets, increasing credit demand. Nearly 6 million people are more than 90 days behind on repayments, with the ratio of bad loans among households reaching 12.8% in June. The administration has resisted calls for state-backed debt relief, characterizing rising household debt as a matter between private parties. Banking groups and fintech firms are calling for lower taxes on loans to reduce borrowing costs.