Experts say how citizens can get out of debt
Russians owe banks credit cards a record amount of money. According to the BCI «Scoring Bureau», the total amount of debt reached 225 billion rubles. Moreover, the volume of arrears surpassed the increase in the portfolio in this segment in terms of growth, which is also alarming. Whether to expect a «bubble» in the lending market, an increase in bankruptcies among citizens and how to learn how to competently close your credit cards, experts told MK.
The increase in overdue debt on credit cards occurred against the backdrop of an increase in the volume of their issuance. In the spring of 2023, banks issued 2 million credit cards per month. For comparison, last year this figure did not exceed 1.8 million units. According to the head of the analytical department of BKF Bank Maxim Osadchiy, the situation in the card market is not critical so far: the share of problem loans (with overdue debts of more than 90 days) was 12% as of June 1, 2023 against 13.4% as of January 1, 2022. However, there are worrying trends. First, the accelerating annual growth rate of the credit card portfolio is worrying: 28.8% as of June 1, 2023 versus 24% as of June 1, 2023. “A clear overheating of the market occurs against the background of the stagnation of the economy, — the expert explains. — While we are not talking about the formation of a «bubble» and about the threat of a crisis in the card loan market, but the «straws» better lay it down. Secondly, the record growth in the volume of problem loans in May by 9.8% (+20.1 billion rubles) cannot but cause concern for the regulator, Osadchy noted.
The increase in public demand for credit cards is understandable. «Credit cards, in contrast» to a bank consumer loan, are issued according to a minimum set of documents, — noted the analyst of Freedom Finance Global Vladimir Chernov. — To receive them, there is no need to confirm your income, so the greatest demand for credit cards falls on the unemployed population, people with «gray» incomes or with low official earnings, that is, for the least solvent citizens. Otherwise, it would be more profitable for them to take a consumer loan from a bank, where the interest is lower.” The increase in delays in May could also be caused by a seasonal factor, as long weekends and holidays led to additional expenses and a decrease in incomes of citizens, especially in the “gray” category. income, which directly depend on the number of days worked, the analyst noted.
If suddenly you are among such citizens with an overdue credit card or several on hand, then do not rush to panic. To get rid of debts, it is enough to choose the right financial strategy and show willpower to stick to it. As advised by an assistant of the Department of State and Municipal Finance, an expert of the Federal Methodological Center for Financial Literacy of the Population of the PRUE. G.V. Plekhanova Irina Kamburova, firstly, conduct a complete audit of your obligations to banks: how many loans do you have, what is the total debt on credit cards.
Second, rank your credit cards as debt increases. Assess how much you can pay off the debt on the smallest of them. The point is not to try to pay off all credit cards at the same time, but to do it sequentially, starting with the smallest debt and gradually moving on to the next. Pay attention to the grace periods on the cards so that you do not have to overpay interest.
To assess your capabilities, analyze your income, how much money you receive per month (if the work is piecework, then the average value will do). Then subtract mandatory payments from this amount: housing and communal services, loan payments, food and transport costs. Of what is left, set aside 10% for unforeseen expenses and send the rest to the maximum to pay off debts on loans, recommends Kamburova.
«Try to transfer the debt to a card with a lower interest rate, — Semyon Nikolaev, managing partner of YURL Group, continues the topic. — Many banks offer special programs to transfer debt from other cards to their cards at a lower interest rate.
And be careful with summer spending. According to financial analyst Mark Goykhman, since today the situation for banks in the Russian economy is not financially critical, they will not tighten their requirements for issuing credit cards, especially during the holidays, when demand for this type of borrowing is traditionally high. So you will have to take care of the completeness of your wallet yourself.