Istanbul Debt Crisis: Half of Residents Unable to Clear Credit Card

A new report from the Istanbul Planning Agency (IPA) has highlighted a worsening financial crisis in Turkey’s largest city. The latest “Istanbul Barometer” study reveals that the cost of living has reached a breaking point, with one in three Istanbulites now unable to pay their monthly credit card debt in full. As the Ramadan season begins, rising food prices and stagnant purchasing power are forcing citizens into survival mode, drastically altering consumption habits across the metropolis.

The Debt Trap: Only 49.6% Can Pay in Full

The IPA’s February 2026 data exposes a significant credit card debt bubble. While 49.6% of participants cleared their total balance, the remaining 50.5% are trapped in various stages of debt accumulation. The breakdown of those struggling provides a sobering look at the city’s liquidity crisis:

• 9.7% were unable to make any payment toward their credit card debt at all.

• 28.8% could only afford the mandatory minimum payment.

• 4.5% failed to reach even the minimum payment threshold.

• 7.5% paid somewhere between the minimum and the total balance.

Istanbul Debt Crisis: Ramadan Hits the Dinner Table

The onset of Ramadan has heightened public awareness of food inflation. According to the research, a staggering 67.5% of Istanbul residents believe that food prices have surged specifically due to the holiday season. While 46.3% of respondents noted an actual increase in their total monthly food expenditure, the general consensus is that basic necessities are becoming increasingly unaffordable. Only a small fraction—11.3%—felt that prices had remained stable.

Survival Strategy: Cutting Out the “Extras”

Faced with mounting debt and expensive groceries, Istanbulites are aggressively cutting discretionary spending. The study shows that “leisure” consumption has been the first to go. Approximately 57.6% of residents have reduced their dining out habits, while 51.9% have significantly cut back on clothing purchases. This shift suggests that the local economy is transitioning toward a “bare essentials” model, as families prioritize debt servicing and basic nutrition over lifestyle expenditures.

With interest rates remaining high and regional conflicts impacting energy costs, the IPA’s findings serve as a stark reminder that for the average citizen, the macroeconomic balance has not yet translated into relief at the household level.