03 Jan

Turkish credit card market is a growing market which also carries a high potential and there is the accelerating role of credit card debt problems, so the most issue is that consumers should be conscious while making expenditures with their credit cards.

A credit card enables ones to have a cashless payment medium combined with a revolving credit and cash advance facility. Many banks have introduced credit card which impact the rate of credit card usage in the negative ways since majority of people prefer to spend via credit cards. However, the plenty of credit card usage leaves bad impression on the society because personal finance experts spend a lot of money through credit cards and many of us commence to abuse of them, so all of them end up in debt.

Credit cards usage can pose a risk

A credit card is a tool which allows you to but items now and pay for them later. Although credit cards can be very useful tool, they can bring huge problems in terms of budget. As a result of this, credit cards encompass different kinds of disadvantages for societies. Providing that you make a late payment, do not pay the balance in full or exceed your credit limit, you will have to pay extra in fees and interest. In respect to this, credit cards can lead to debt and adversely impact your credit history if it is not managed properly. Moreover, if you do not track your purchases, it can be tough to know how much you spend in one month until your statement arrives. The main problem is that it is ease to have credit cards and there are several ways you can get a credit cards, yet majority of ones are not able to use credit cards, so these circumstances arise trouble of credit cards usage.

Under these circumstances, Turkish government started to regulate the credit card market and there is an intention to prevent unjustifiable usage of credit cards. This new regulation which has been promulgated in the Official Gazette dated November 31, 2013, numbered 28868 which indicate the limitation of bank cards and credit cards usage. Turkey’s banking watchdog (BDDK) had announced new regulations which a consumer’s credit cards limit shall not exceed nine months. This new regulations promises stricter standards for the evaluation of credit card applications and tighter alignment of account limits with regular income. Through the new rules, credit cards holders cannot exceed the upper limit which will be set by regulation of their monthly income and the credit card usage prevents the informal economy.

On the contrary, the limitation of credit cards usage has an adverse impact on tradesmen because this causes stagnancy in their business. Hence, both the expenditure side and payments system side are trying to digest the effects of the credit card debts occurred as a consequence of this extensive and unconscious usage. Notwithstanding this process is essential so as to control inflation, it also causes some disadvantages in the growth in the domestic market, so both sides which are banks and consumers have important roles in the process of gathering solutions for credit card problems.

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