Sharp Rise in Credit Card and Loan Defaults in Turkey

In the first two months of 2025, 259,000 individuals in Turkey faced legal proceedings due to unpaid personal loans or credit card debt, marking a 44% increase compared to the same period in 2024. According to data shared by Prof. Dr. Şenol Babuşcu, legal cases specifically tied to credit card debt rose to 345,000, while the total number of unresolved debtors has reached nearly 4 million.

The findings are based on data from the Risk Center of the Banks Association of Turkey, and reflect growing financial strain among consumers amid a shifting economic landscape.

“The number of individuals facing legal action due to personal loan or credit card debt rose by 44% year-on-year, reaching 259,000,” Babuşcu said, highlighting the spike in credit card delinquencies.

Credit Card Defaults Jump 52%

In the same January–February 2025 period, the number of people legally pursued solely for credit card debt increased by 52%, reaching 167,000.

As of February 2025, the total number of individuals who remain in default on personal credit or credit card debt is 3,998,602. This group includes those with debts still with banks, as well as those whose loans have been transferred to asset management companies.

“As of February 2025, the number of individuals facing legal proceedings over credit card debt rose 58.6% year-on-year to reach 345,000,” Babuşcu stated.

Breakdown of Debt and Borrower Figures

• 1.69 million people still owe on personal loans

• 1.67 million people remain indebted through credit cards

• 2.57 million people hold both types of debt

• 2.04 million people are under active legal collection with asset management firms

Personal Loans See Highest Default Rates

As of February 2025, the total personal loan volume in Turkey stood at 4.28 trillion Turkish lira, of which 163 billion lira was classified as non-performing (to be written off).

Among loan types:

• Personal (consumer) loans had the highest default rate at 5%

• Credit cards followed with a 4% default rate

• Housing loans showed a low 0.1% delinquency rate

• Vehicle loans had a 0.4% rate

• The “Other consumer credit” category showed 82 billion lira in bad loans

“The highest rate of non-repayment in personal loans is in consumer loans at 5%,” Babuşcu noted.

Construction and Education Lead in Sectoral Defaults

When broken down by industry, the construction sector reported the highest loan default rate at 4.9%, followed closely by retail trade at 4.8%. However, Babuşcu emphasized that in terms of data classification:

“The education sector—grouped under ‘other’—ranked first with a 5% default rate at the end of February 2025,”
signaling a growing debt crisis in social services as well.