According to data from the Turkish Banking Association, 2013 witnessed a worrying phenomenon: 55% of one million people failed to pay off their debts, with credit cards being the main cause. In just one year, the number of unpaid debts increased by 228,000, of which 155,000 were credit card debts alone. Furthermore, statistics from the Turkish Interbank Card Center revealed that credit card purchases amounted to a staggering $409 billion.
However, the problem is not limited to excessive credit card use. In fact, 15% of spending is spent on food, while 11% is spent on gasoline and 8% on clothing and electronics.
But what about other forms of debt? Mortgages, car loans, and personal loans are also in the spotlight. From 2012 to 2013, the number of people unable to repay these loans increased significantly, from 308,000 to 464,000.
In response to this growing concern, measures are being taken to prevent and reduce excessive credit card spending. These measures will include government intervention to limit and, in some cases, eliminate the option of installment payments for certain purchases.
It is clear that personal financial management has become a critical issue in Turkey and around the world. Maintaining a proper balance between expenses and income is more important than ever to avoid spiraling into debt.
