Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Credit Card Debt Doubles

The percentage of overdue credit card loans has almost doubled since the beginning of the year, on the heels of last year’s credit boom, and the numbers are likely to go up, banking experts said.

The value of overdue credit payments in the private banking sector is growing rapidly since the beginning of the year, and over the first four months went up by almost 15 percent —  46 billion rubles ($1.4 billion) —  bringing the total to almost 360 billion rubles, according to a report by the National Collection Service cited by Banki.ru news agency.

The most significant growth was seen in the credit card segment, with its overall share growing from 15 to 27 percent, the report said.

Sergei Shpeter, a senior executive with the collection service, estimated that by the end of the year the share of overdue loans linked to credit cards could be as much as 30 percent of the total.

This is due to the fact that banks are pushing clients to take out loans tied to credit card accounts rather than in cash, the report said. While credit cards are becoming popular, loans in cash still lead the individual credit segment.

“Both are high-margin, unsecured loans, which mean low levels of customer credibility. High levels of overdue payments are expected, balanced out by an effective percentage rate,” said Vyacheslav Putilovsky, an analyst with Banki.ru.

Related articles:

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more