Increased Outstanding Loans in Russia Reach Higher Levels
Rising Credit Card Debt Among Russians Reaches 1.1 Trillion Rubles
Moscow - The credit card debt of Russians has experienced a substantial increase, reaching a record 1.1 trillion rubles within six months. This significant growth was revealed by data from the United Credit Bureau (UCB) published in the newspaper "Izvestia".
The proportion of overdue credit card debts now accounts for 3% of all such debts, marking a 70% increase compared to six months prior. This trend has been noteworthy since 2024, with the situation further deteriorating in the beginning of 2025. According to Mikhail Alexin, the general director of UCB, the quality of loan servicing on the banking market has declined sharply.
Several factors contribute to this mounting debt situation. The declining purchasing power of Russians can be attributed to the 8.3% inflation rate recorded in Q1 2025. Simultaneously, the growth of real incomes among the population has come to a halt, leaving citizens with little option but to resort to credit cards despite high interest rates. These elevated interest rates reach an average of 27%, though additional costs related to card usage are not included in this figure, pushing the total loan cost to around 50%.
Analysts view this spike in credit card debt as a concerning indicator for the economy, signaling growing risks amidst tightening loan terms by banks. This factor makes obtaining credit less accessible, not only for traditional loans but also for plastic cards. As the economic challenges persist, experts anticipate a continuing inclination among Russians to seek credit to manage their financial obligations.
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The escalating credit card debt crisis in Russia, as suggested by the 1.1 trillion rubles debt reached within six months, is a matter of concern not only for personal-finance management but also for the broader finance industry and banking-and-insurance sector. The sharp decline in the quality of loan servicing, as reported by Mikhail Alexin, general director of UCB, emphasizes the pressing need for financial institutions to address these issues.
