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Credit card defaults set a record in Russia
The National Association of Professional Collection Agencies (NAPKA) recorded a record increase in overdue credit cards for more than three months. It is 110 times higher than a year earlier.
As they write "News”, The analysis was carried out by experts (NAPKA) and the credit bureau Equifax. According to them, the Russians began to use credit cards more actively during the self-isolation regime. And if at the beginning of 2020 the volume of “bad” debts overdue for more than three months will amount to 125,2 billion rubles, then in May this figure increased to 139 billion rubles.
The current increase in overdue debt was 11% compared to the same period last year. In January-May, the growth was only 0,1%.
Such growth is fully linked to the effects of the pandemic. At the same time, according to the CEO of Equifax Oleg Lagutkin, citizens, against the background of lower incomes, first provide for themselves and loved ones, and only then pay debts to banks. According to a Unicom poll24, out of credit card limits, about a third of the Russians planned to spend on food, while earlier it took no more than 20-25%.
The situation is aggravated by the fact that it is rather difficult to resume debt service after a payment is missed due to the lack of a traditional repayment schedule. Because of this, the repayment of accumulated debt will be longer.
The banks believe that many customers managed to avoid overdue debt due to credit holidays. At the same time, according to the chairman of the board of BCS Bank Dmitry Peshnev-Podolsky, these trends are not new: the percentage of approval of credit cards began to fall from January 2020 against the backdrop of a several-year decline in real incomes of the population.