Turkey Leads Europe in Credit Card Debt
According to a new study on European credit card debt, Turkey has the highest ratio of credit card debt when compared to total consumer debt. Much of this has to do with a lack of savings in the country.
Approximately 53% of consumer debt in Turkey is associated with credit cards. By comparison, the ratio for credit card debt in the UK is 25%, and the ratio for The Netherlands is just 5%. Citizens of Turkey also hold 37% of their debt in the form of personal loans, with 20% as loans from friends and family members.
Turkey’s biggest problem is a gap in savings. Turkey’s savings make up just 13-14% of the gross domestic product, but the average savings for all of Europe is 38%. The percentage of people in Turkey who have no savings is 44%, compared to the 38% average in Europe.
Yet another problem playing into Turkey’s high credit card debt is the fact that 62% of Turkish consumers do not routinely add to their savings.
More Turkish citizens say the economy has had a negative impact on their financial status–that number has grown from 31% to 39% in 2014. Europe reported a decline of people who felt this way, from 41% to 26% over the same time frame.