Turkish Households Struggle with Debt and Diminishing Savings
A recent study by ING reveals a growing financial strain on Turkish households, with over half of the population carrying debt. The “Türkiye’s Savings Trends Research” for the second quarter of 2025 indicates that 51% of participants are indebted to either an institution or an individual. Credit card debt is the primary source of this burden, followed by bank loans, accounting for 40% of all reported debts.
the primary obstacle to saving is insufficient income, cited by 67% of respondents. This financial pressure is driven by a combination of factors including low salaries, unemployment, high rental costs, and escalating utility bills. Specifically, 40% of participants reported that their income is simply not enough, while 25% are struggling to find employment and 24% are overwhelmed by the cost of essential bills like electricity, water, and natural gas.
This economic hardship is leading to significant changes in consumer behavior. The percentage of citizens prioritizing only essential purchases has risen to 55%, and 56% actively seek out discount campaigns.Social activities are also being curtailed, with 61% of participants reducing spending on entertainment like theater and concerts, and 54% postponing social engagements due to financial constraints.
Despite these challenges, the number of individuals attempting to save has slightly increased, with 48% now reporting savings, compared to 54% who are unable to save. Though, conventional saving methods remain dominant.
Preference for “Under-the-Pillow” Savings
Gold remains the preferred method of saving,with 35% of respondents choosing to hold their savings in gold. Cash and foreign currency held at home follow closely behind at 28%. This means a combined 63% of accumulated savings are kept outside of formal financial institutions. While time deposits in Turkish Lira (TL) account for 21% of savings, investments in stocks and the stock market are gaining traction at 19%, alongside precious metal accounts at 18%.
