Credit card debt hit a record in 2023

In 2023, a year when lending was reined in, citizens turned to credit cards. Credit card debt reached a record level, exceeding 1 trillion TL with a 2.5-fold increase compared to the previous year.

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Due to the constantly rising exchange rate, high inflation, and the high cost of living, citizens found a solution in credit cards. The increasing usage rate was also reflected in debt data.

Following the elections, the new economic management tightened monetary policy. With high interest rates and certain tightening measures, credit usage decreased. However, credit cards replaced the declining loans.

2.5-FOLD INCREASE IN CARD DEBT

According to data from the Banking Regulation and Supervision Agency (BDDK), credit card debt rose to a record level in 2023. The total amount of credit card debt, which was 446 billion lira in 2022, increased 2.5-fold by the end of 2023, exceeding 1.1 trillion lira.

CONSUMER LOANS CONTRACTED

Despite the increase in card debt, the decrease in personal loans drew attention. During this period, consumer loans contracted by 12 percent.

In the BDDK's 2023 data, an expansion in vehicle loans is notable.

Vehicle loans increased by 93 percent in 2023.

HOUSING LOANS CAME TO A STANDSTILL

In the same year, housing loans virtually came to a standstill. Throughout the year, housing loans grew by only 22 percent. When adjusted for inflation, this rate represents a 26 percent contraction.

When the 2023 debt report card is examined, the total debt of individual loans and cards reaches 2.7 trillion lira.

News Source: 12punto