Credit cards sound the alarm

As the government prepares for new regulations that limit the use of credit and credit card spending, citizens who resort to debt after rising inflation and melting purchasing power are struggling with debts they cannot pay. The Risk Center of the Turkish Banks Association (TBB) published data on “personal loans and credit cards of negative quality, July 2023.” According to data from the Risk Center, the number of people subject to judicial proceedings for individual credit card debts reached 96 thousand people in July, with an annual increase of 23 percent. The number of people facing court proceedings over personal loan debts rose 14 per cent annually to 114,000 in the same period. The number of people subject to court proceedings for personal loans or credit card debts increased by 15 percent, from 156,000 to 180,000, in this period.

YOU CANNOT PAY 40 BILLION TL

According to data from the Risk Center, in July, accounts receivable to be settled on individual loans, including individual credit cards, reached 40 billion TL, an increase of 26 percent compared to the previous year. The number of real people who have not paid their personal loan and credit card debts and whose debts remain is 3,834,908 as of July. Although the number of people behind on their loans and credit card debt increased in July, the sharp increase in credit card spending also attracted attention. In July, there was a 149 percent growth in credit card spending compared to the same period of the previous year. In July alone, credit card payments worth 618.4 billion Turkish lira were made.

Citizen card debt exceeds credit debt

According to data from the Banking Regulation and Supervision Agency (BDDK), the total amount of debt accumulated on individual credit cards as of September 1 reached 922 thousand 296 million TL. However, just a year ago, in September, individual credit card debts amounted to 323 billion 607 million lira. The economic leadership took measures to prevent a 185 percent increase in credit card debt in one year. As of September 1, the size of consumer loans reached 903.404 million Turkish liras, with an annual increase of 60.6 percent. Thus, for the first time, a citizen’s total credit card debt exceeded his or her consumer loan debt.