Jaw-dropping interest on credit card debt restructuring! How much is the repayment for a 100,000 TL debt?

While struggling to make ends meet due to high inflation and the cost of living, citizens have found a solution in credit cards.

There has been an explosion in the debt of citizens who have turned to credit cards and consumer loans.

The Central Bank of the Republic of Turkey (TCMB) and the Banking Regulation and Supervision Agency (BRSA) have decided to allow credit card debts to be restructured with a 60-month maturity. However, this formula also adds a high interest burden to the citizens' backs.

According to the report by Mehtap Özcan Ertürk from Sözcü, the interest rate to be used in restructuring individual credit cards will be 3.11 percent. However, a 15 percent Resource Utilization Support Fund (KKDF) and a 15 percent Banking and Insurance Transaction Tax (BSMV) will be added to this interest rate. Thus, the monthly interest rate for the restructuring will reach 4.04 percent. While this rate offered through restructuring may seem like a relief at first glance in a process where the average interest rate on consumer loans has risen to 5.9 percent, citizens will be signing up for a heavy interest burden over the 5-year repayment period.

For example, in the case of restructuring a 100,000 TL debt with a 60-month maturity, the monthly payment will be 4,454 TL. The total repayment of the debt reaches 267,375 TL. Thus, a citizen who wants to lighten their card debt will have paid a total of 167,375 TL in interest to close their 100,000 TL debt.