Interest paid on credit card debt has also risen: A 194 percent increase compared to last year

BRSA data showed that the interest income banks generated from individual loans and credit card debt increased by approximately 194 percent compared to the same period last year.

The increase in credit card debt and bank interest income was significant. While individual loan debt increased by 24.4 percent in one year, credit card debt rose by 80.3 percent.

According to a report by Havva Gümüşkaya from Birgün, while banks' total interest income reached 2 trillion 31 billion 982 million TL, individual debt accounted for 717.6 billion TL of this amount.

A 193 PERCENT INCREASE COMPARED TO THE SAME PERIOD LAST YEAR

Spending in areas such as grocery, healthcare, and basic needs, which constitute non-installment credit card debt, increased rapidly. The interest income banks generated from individual loans and credit card debt reached 717.6 billion TL, an increase of 193.9 percent compared to the same period last year.

The non-performing loan ratio also rose, indicating that customers are struggling to pay their debts and banks are having difficulty collecting their receivables.

While the non-performing loan ratio, which was 1.60 percent in the same period last year, rose to 1.68 percent in July, interest collected from non-performing loans reached 22 billion 630 million TL, an increase of 147.5 percent.

INDIVIDUAL LOAN DEBT AMOUNT IS 1 TRILLION 760 BILLION 278 MILLION TL

According to BRSA data, the amount of individual loan debt in July increased by 24.4 percent in one year to 1 trillion 760 billion 278 million TL.

The amount of debt originating from credit cards increased by 80.3 percent to 1 trillion 545 billion 480 million TL. Non-installment credit card debt accounted for 1 trillion 16 billion TL of this amount. Non-installment payments used for grocery, healthcare, and basic needs expenditures increased by 124.5 percent compared to the same month last year.

The use of only monetary policy in the fight against high inflation leads to interest rates remaining high, while loans and credit cards are being closely monitored to reduce domestic demand. While the decline in citizens' purchasing power increases borrowing, experts point out that the consequences of this could create serious effects.

News Source: 12punto