Debt Crisis in Turkey: Credit Card Debt Exceeds Income for One in Two People

Economic Expectations and Inflation Forecasts The February "Turkey Report" prepared by Istanbul Economy Research has provided significant data regarding the public's economic status and future expectations.
According to the research, while citizens' evaluations of the current economic situation remain stagnant, there has been a limited increase in hope for the upcoming period.
The public's inflation expectation decreased by 4.5 points compared to the previous month, falling to 50.8 percent.
Increasing Dependence on Borrowing Tools Research results indicate that household dependence on borrowing tools has reached critical levels.
Within the last year, the rate of those who borrowed from their immediate circle to meet basic needs exceeded 50 percent.
Furthermore, it was determined that for one out of every two people, the monthly credit card statement is higher than their total income.
This situation proves that the balance between income and expenditure for citizens is maintained through borrowing.
Borrowing Preferences by Education Level Another striking element in the report is that borrowing methods vary according to socio-economic and education levels.
While the tendency to borrow from immediate circles is more dominant among individuals with lower education levels, credit card debt exceeding income is a more common problem among university graduates.
This divergence reveals that strategies for coping with the economic crisis differ among social groups.
Use of Cash Advances and Overdraft Accounts Data shows that one in three people actively uses short-term borrowing tools such as cash advances or overdraft accounts (KMH).
A significant portion of participants reported applying for consumer loans and struggling even to meet the minimum payment amounts for credit cards.
This picture indicates that financial sustainability is becoming increasingly difficult for large segments of the population.