Citizens’ Credit and Credit Card Debt Increased by 55% in 1 Year!

While the purchasing power of Turkey has decreased drastically due to the enormously rising inflation and exchange rate in less than a year, today Banks Association of Turkey (TBB) Risk Center data revealed a striking picture. The data of TBB pointed out that a wave of individual bankruptcies is at the door in our country.

According to TBB data, the receivables to be liquidated in individual loans, including individual credit cards, in short, the debt of the citizen, compared to the previous year. It increased by 55% and reached 30.5 billion TL. As of May 2022, the number of people who are legally pursued for not being able to pay their debts It reached 4 million 147 thousand 977.

The number of people under legal follow-up has almost doubled:

• Number of people followed legally for personal credit card debt: 403 thousand
• Number of people followed legally for personal loan debt: 513 thousand
• Number of people followed legally for personal loan or credit card: 748 thousand 437
  • In the same period of 2021: 408 thousand 913 (-339 thousand 524)

The use of personal credit cards has increased significantly:

• Number of people using personal loans, excluding non-performing loans, in the last year 1.6 million people increased and reached 36.1 million.
• The average credit card balance of borrowers increased to 31,500 TL.

60% of the loans drawn are consumer loans:

Zehra Tükenmez, Head of Loans Unit from Interactive Credit, 60% of personal loans are consumer loans stated that. Tükenmez explained what this means as follows:

“This situation is based on the instant needs of the citizen rather than buying real estate such as vehicles and housing. prefers to use a loan to save the day It causes us to make such an inference. While the limits for consumer loans can go up to around TL 150,000, now these limits are between TL 50,000-70,000.”