Personal credit card debts increased by 2.85 times compared to last year

According to the data of the Banking Regulation and Supervision Agency (BRSA), personal credit card borrowing has started to rise again. A comparison website that investigates how successive interest rate increases on credit card and cash advance usage are reflected in decoupling encazip.com , revealed that the demand of citizens for personal credit card and cash advance borrowing continues to increase.

Accordingly, the amount of credit card debts, which was TL 808 billion 710 million on July 14, decreased to TL 807 billion 273 million on July 21, while it rose again in the last week of July and reached TL 839 billion 830 million.

PERSONAL CREDIT CARD BORROWING INCREASED BY 2.85 TIMES

According to BRSA data, personal credit card borrowings in TL and foreign currencies amounted to TL 839 billion 830 million in the last week of July. Of these, TL 399 billion 534 million was made up of installment debts and TL 440 billion 296 million was made up of non-installment debts. Credit card borrowing, which has been on the rise since April 2023, continued to increase in July as well. Personal credit card borrowing increased by a factor of 2.85 compared to the same period last year. In credit card borrowings, it was seen that non-installment borrowings were at 160 percent and installment borrowings were at 219 percent.

THE MAIN INCREASE WAS IN INSTALLMENT CREDIT CARD BORROWINGS

It was also seen that the largest increase compared to last year was experienced in installment credit card borrowings.

Regarding the issue and expert said, “We think that this increase in installment credit card debts is due to installment cash advances used by consumers on credit cards. Due to the low growth rate of consumer loans, we see that consumers meet their cash needs by withdrawing installment cash advances from credit cards. In addition, zero-interest installment cash advance campaigns applied by banks to new customers also have a share in this increase.”