How is loan and credit card debt restructured? Will the limit increase if the restructuring is done? What is the interest rate?
A new opportunity has opened for those struggling to pay off credit cards and personal loans. The Banking Regulation and Supervision Agency ( BRSA ) has decided to restructure debts over 48 months. This decision shortens the repayment period, which was previously 60 months, while broadening the scope of the restructuring .
This will allow more people to benefit from restructuring. Accordingly, not only cardholders who haven't paid the minimum due amount but also individual cardholders who are partially or fully unable to pay their outstanding balance will be eligible for restructuring. This also applies to individuals with consumer loans who are late on principal and/or interest payments. This opportunity is also being granted to individuals with previously restructured credit cards and consumer loans. Here are the details of the restructuring...
1-How many months will it take to repay the debt? According to a report in Sabah, the BRSA approved a 48-month restructuring of outstanding debt. Previously, credit card debt restructuring was offered with a 60-month term. This time, the BRSA shortened the maturity and application periods, creating a faster, less costly process.
2-Who will benefit from the restructuring? Individual credit card customers who are unable to pay their current debt partially or completely, consumer loan customers who are late on principal and/or interest payments, and individual credit card and consumer loan customers who have previously been restructured will be eligible.
3-Will only those who haven't paid the minimum debt benefit? Last December, credit card debt restructuring benefited users struggling to pay even the minimum, cardholders who weren't involved in legal proceedings, individuals who could declare regular income, and those who hadn't previously restructured or defaulted on their debt. The decision published in the Official Gazette yesterday expanded the scope, providing relief to more debtors. Accordingly, credit card restructuring will now apply not only to those who haven't paid the minimum amount, but also to individual cards whose outstanding balances have been partially or fully delinquent. The overdue period for consumer loans has been updated from "exceeding 30 days" to "any overdue payment."
4-Can loans without overdue overstays be restructured? For both credit cards and consumer loans, the restructuring scope was previously based on the debt balance as of the decision date; now, the debt balance as of the restructuring date will be taken into account, and loans restructured before the decision date, even if they are not overdue, can be restructured.
5-Which debts are included in the restructuring? Credit cards, consumer loans, and overdraft accounts (advance accounts, overdraft accounts, etc.) will be included in the restructuring.
6-When are applications due? Debt restructuring applications must be submitted within three months. This means that citizens with debt must apply to their bank by October 10th.
7-What will the interest rate be on restructuring? The Central Bank of the Republic of Turkey has set the maximum interest rate for credit card restructuring transactions at 3.11 percent. This rate rises to 48.52 percent annually. Considering the 83 percent default interest rate applied to overdue debts, this rate will be an opportunity for those looking to pay off their debt.
8-How will debt restructuring be handled? Applications for credit card and consumer loan debt restructuring will be submitted through banks. Restructuring is expected to begin this week.
9-Are those who pay their statements in full eligible for coverage? According to the circular, those who have the financial means and have paid their statements in full as of the date of the decision are not eligible for restructuring. In other words, those who are in arrears when the decision is issued will be eligible for restructuring.
10-Which term should you choose? Debts can be restructured for up to 48 months. It's best to choose the term that best suits your payment needs. With interest rates expected to drop starting in July, a short-term restructuring would be advantageous.
4,752 TL PAYMENT FOR 48 MONTHS FOR A 100,000 TL DEBT If a citizen with a 100,000 TL card debt restructures with a 6-month installment from the bank, the monthly installment will be 19,102 TL. If they commit to paying off their debt in 18 months, they will pay off their debt in 7,926 TL installments. If they choose a 36-month installment, they will pay 5,320 TL per month. If they choose to split their debt over 48 months, they will pay 4,752 TL per month.
WILL THE PERSON'S LIMIT BE INCREASED FOR A CREDIT CARD RECONSTRUCTION? In credit card restructurings, the relevant bank will not increase the card limit until half of the debt is paid. In consumer loan restructurings, no loan will be granted that exceeds the existing debt balance.
VERY HIGH interest rates were putting loan and credit card borrowers in a difficult position. A significant increase in the number of people facing legal proceedings was observed in the first five months of the year.
The number of people facing legal action due to debt has surpassed 1 million. According to data released last week, consumer loans increased weekly to 2.381 trillion Turkish Lira. During the same period, individual credit card debt also rose to 2.241 trillion Turkish Lira, bringing total individual debt to 4.622 trillion Turkish Lira.
Takvim
