Income is insufficient, debt is rising: Citizens' desperation reflected in research

The debt burden in Turkey is steadily increasing. According to a study, one in every two people is currently in debt, and the majority of these debts stem from credit cards and bank loans. While 51 percent of participants stated that they owe money to an institution or an individual, credit card debt ranks first at 46 percent. This is followed by bank loans at 40 percent. The research also revealed that the most significant reason for being unable to save money is 'insufficient income'.

67 percent of participants expressed that their income is insufficient and that they are therefore unable to save. Low wages, unemployment, high rent, and rising utility bills are among the primary factors preventing savings. 40 percent of participants said 'the money I have is not enough', 25 percent said 'I cannot find a job', and 24 percent said 'bills such as electricity, water, and natural gas are too high'.

The research also highlighted changes in citizens' spending habits. Regarding grocery shopping, 55 percent of citizens stated they only purchase essential needs, while 56 percent indicated they wait for discount campaigns. A similar situation exists in social life. While 61 percent of participants said 'I cannot set aside money for events like theater or concerts', 54 percent stated they have had to postpone their social lives due to financial difficulties.

SAVINGS PREFERENCES AND 'UNDER-THE-PILLOW' SAVINGS

The research shows that both those who save and those who do not are in debt. While the debt rate among those who save is 48 percent, this rate rises to 54 percent among those who cannot save. As for savings preferences, gold remains the most popular option. 'Under-the-pillow' gold ranks first at 35 percent, while cash in TL and foreign currency kept at home ranks second at 28 percent. Bank TL time deposit accounts attract 21 percent interest, stocks and the stock market 19 percent, and precious metal accounts 18 percent.

News Source: 12punto