ANKARA, Jan 31 (NNN-TRT) – Economists in Türkiye are raising alarms, over a sharp rise in credit card usage, as mounting debt defaults add to financial strain.
Credit card spending surged 86 percent year-on-year, to 420 billion U.S. dollars this year, driven by inflation and increased digital transactions, the central bank reported last week.
The country of 86 million had 129 million credit cards in circulation by Nov, last year, with 11 million issued that year alone.
While credit cards offer convenience, growing reliance on them has deepened financial pressure, economists said. Legal cases over unpaid debts climbed to 1.66 million last year, from 1.19 million a year earlier.
Turkish economist, Mustafa Sonmez, pointed to inflation and cash advances as key drivers, particularly among younger, digitally savvy consumers.
“People are juggling multiple credit cards just to make ends meet because the cost of staple foods and everyday goods remains high,” Sonmez said.
A recent survey in Istanbul found that 56 percent of cardholders pay only the minimum balance each month, underscoring growing financial distress.– NNN-TRT
