While personal loan and credit card borrowings continue to increase in recent months, comparison site encazip.com researched the repayment charts of borrowings. According to data received from the Banks Association of Turkey Risk Center (TBB Risk Center), the number of people who have not paid their personal loan and credit card debts decreased by 2023 percent in 11.64, falling to 1 million 320 thousand 376 people. In 2022, this number was 1 million 494 thousand 395 people. Again, according to TBB Risk Center's December 2023 data, individual loans provided by banks and non-bank financial institutions increased by 76 percent and reached 2,7 trillion TL. It was observed that 99 percent of these loans were provided by banks. 44 percent of individual loans were credit cards, 30 percent were consumer loans, 16 percent were housing loans, 4 percent were vehicle loans and 6 percent were overdraft accounts.
Excluding non-performing loans, the number of people using personal loans increased by 2023 million compared to the previous year, reaching 2 million people in 40. The average loan balance was 69 thousand TL. In December 2023, 385 thousand people benefited from credit cards for the first time and 112 thousand people benefited from consumer loans. While the number of people using housing loans was 4 thousand, 512 thousand people used overdraft accounts for the first time and 33 thousand people used vehicle loans.
ISTANBUL IS THE CITY WITH THE HIGHEST SHARE IN PERSONAL LOAN
The provinces with the highest average personal loan total balance per capita, including credit cards, were Istanbul, Ankara and Izmir, respectively. As of December 2023, Istanbul was recorded as the province with 28 percent, Ankara with 10 percent and Izmir with 7 percent of the personal loan share. Bayburt was the province with the highest increase in personal loan balance in the last 12 months.
BORROWINGS INCREASED, THE NUMBER OF PEOPLE WHO HAVE NOT PAID THEIR DEBTS DECREASED
Individual credit card usage continued to increase. According to the data of the Banking Regulation and Supervision Agency (BDDK), individual credit card borrowings increased by 153 percent compared to last year. While credit card debts increased, the decrease in the number of people who had not paid their debts attracted attention. The number of people who did not pay their personal credit card debt in 2023 was recorded as 865 thousand 648. Here too, there was a decrease of 3.83 percent. In 2022, this number was 900 thousand 094 people. The situation has not changed in personal loans. Here, too, there was a 14.77 percent decrease in the number of people who had not paid their debts compared to the previous year. According to TBB Risk Center data, the number of people who have not paid their personal loan debts was recorded as 2023 thousand 852 people in 727. In 2022, this figure was 1 million 627 people.
“MONETARY TIGHTENING POLICIES HAVE STARTED TO BEAR THEIR FRUIT”
Speaking on the subject, Çağada Kırım, founder of encazip.com and savings expert, said: “In recent years, the number of people who could not pay their credit card or loan debts has constantly increased on a yearly basis. However, when we look at last year's data, we see a decrease, albeit partial. This is important because when macroeconomic conditions are evaluated, we think that the change in banks' loan or credit card granting policies is behind the decline. Because the most serious measures have been taken on the banking side. Although this situation was interpreted as a difficulty in citizens' access to credit, a decrease was observed as a result. "If monetary tightening is implemented in this way and a bitter prescription is taken for a certain period of time, we can see that the unpaid debts will decrease even more seriously."
