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
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
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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