New Option for Credit Card Debt: Restructuring with up to 60 Months to Pay – Latest News from Turkey
New Measures Introduced for Credit Card and Consumer Loan Debt
Recently, the Central Bank of the Republic of Turkey (CBRT) made an amendment to the Communiqué on the Maximum Interest Rates to be Applied in Credit Card Transactions. This change was complemented by a relevant decision from the Banking Regulation and Supervision Agency (BDDK), which has been made available on their website for public access.
One of the key highlights of this new amendment is the introduction of the possibility of restructuring individual credit card and consumer loan debts for up to 60 months. For individuals who are struggling to make payments on their personal credit cards and loans, this new measure offers some relief. Those who cannot pay the minimum amount of their credit card debt can now opt to pay off their balance in installments over a period of 60 months.
The installment amount will be added to the minimum payment required each month. Additionally, the credit card limit allocated by the bank will not be increased until at least 50% of the restructured debt is paid off.
In a statement released by the BDDK, it was emphasized that these measures are part of a broader strategy aimed at maintaining financial stability. The decision taken by the Banking Regulation and Supervision Board outlines the specific conditions under which individuals can benefit from debt restructuring for their credit cards and consumer loans.
Furthermore, the CBRT has also announced changes to the maximum contractual interest rates applied to individual credit cards. These rates will depend on the reference rate and the amount of credit card debt. The new rates will be implemented on November 1, following an announcement on October 24.
Overall, these measures aim to provide support to individuals who are facing financial difficulties due to credit card and consumer loan debts. By offering extended installment options and revised interest rates, the hope is to alleviate some of the financial burdens faced by consumers in Turkey.
