Spending has soared: New regulations coming for credit card limits
Following a 103 percent increase in credit card spending in May, which reached 1.3 trillion TL, it has been learned that steps will be taken in the coming days to reduce credit card usage by lowering limits and installment numbers.
As the purchasing power of the Turkish Lira declines due to high inflation and the rising cost of living, citizens struggling to make ends meet have found a solution in credit cards.
According to data from the Interbank Card Center (BKM), credit card spending in May increased by 103 percent, rising to 1.3 trillion TL.
Steps are expected to be taken in the coming days to reduce credit card usage by lowering limits and the number of installments.
A TOTAL OF 410 MILLION CREDIT CARDS
According to a report by Dünya newspaper; credit card usage in Turkey is increasing rapidly. According to BKM data, while card payments have more than doubled in the last year, the total number of cards has approached 410 million.
Experts evaluating the increase in credit card usage state that inflation, which exceeded 75 percent in May, is the primary reason for the rise in credit card spending. They also note that credit card usage is increasing because annual personal loan interest rates, which are approaching 80 percent, remain significantly higher than credit card interest rates.
TIGHTENING HAS NOT REDUCED USAGE
In this context, the Central Bank made a regulation in March to restrict credit card usage and increase monetary tightening, raising the interest rate on credit card cash advances from 4.42 percent to 5 percent and increasing the interest rate on overdraft accounts to 5 percent. However, it is observed that this increase has not reduced credit card usage.
NEW REGULATIONS COMING FOR CREDIT CARDS
It is being discussed that the Banking Regulation and Supervision Agency (BDDK) will introduce a regulation regarding credit card limits in the coming days.
It is planned to allocate a maximum limit of 4 times the monthly income for those who have been using credit cards for a short time, and a limit of 8 times the total of salaries and side incomes for customers who have held cards for a long time and make regular payments.
Additionally, it is among the topics being discussed that the number of installments will be reduced to curb high-installment spending.
News Source: 12punto
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