The Number of Individuals Subjected to Legal Action Due to Loan or Credit Card Debt Has Increased
In November 2024, there was a notable increase in the number of individuals subjected to legal action due to personal loan or credit card debt compared to the previous year. According to statements from the Turkish Banking Association (TBB), this situation indicates that economic difficulties persist.
Legal Action Intensity on Personal Credit Card Debt According to TBB data, the number of individuals under legal action due to personal credit card debt during the period from January to November 2024 was identified as 1.237 million. This figure highlights the severity of the challenges faced concerning credit card debts. Additionally, the increase in the number of individuals struggling to manage credit card debts emerges as a significant concern emphasized by the TBB.
The rise in legal actions regarding personal credit card debts is considered an indicator that credit card users are experiencing payment difficulties. It is noted that the increasing financial burdens have raised the number of individuals facing challenges in repaying their debts.
Increase in Personal Loan Debts The number of individuals under legal action due to personal loan debts was recorded at 1.039 million in the January-November 2024 period. This number demonstrates serious issues in personal loan repayments as well. The rise in individuals struggling to repay their loan debts reveals the impact of economic instability on individuals.
Particularly, the increase in the number of individuals entering legal proceedings related to personal loans poses risks for banks and financial institutions. The growing number of debtors also reflects the pressure of economic fluctuations on consumers.
Overall Assessment: 39% Increase in Legal Actions In the January-November 2024 period, the number of individuals who entered legal proceedings due to personal loans or personal credit card debts increased by 39% compared to the same month of the previous year, reaching 1.664 million. This rate of increase paints a striking picture of the overall state of economic hardship and personal borrowing.
The legal action figure of 1.664 million during this period indicates that the financial burdens on individuals are growing. Economic uncertainties and the difficulties individuals face in accessing financial resources are listed among the primary reasons for the increase in legal proceedings.
Increase in Personal Loan Balances by November 2024 Data from the Risk Center shows that, as of November 2024, non-performing receivables, including personal loans encompassing credit cards, surged by 146% year-on-year, reaching 116 billion TL. This significant increase underscores the weakening of individuals' debt repayment capacities and stands out as a development that requires close monitoring within the financial sector.
In this context, the rise in personal loan balances is regarded as a problem that could jeopardize financial stability. The decreasing repayment capacity of debtors ranks among the barriers to economic recovery.