Recent data show that residents in Russia increased their spending on credit cards while carrying overdue balances of more than 90 days to a five-year high. The figures come from Prime, citing information from the press service of the credit history agency known as the Scoring Bureau. The trend signals tightening consumer financial behavior and a growing caution among lenders as delinquency windows widen. In practical terms, it means more borrowers are extending payment cycles and using credit lines more aggressively, a pattern that could influence lending standards, credit availability, and household budgeting across the country as a whole.
At the end of February 2023, the average share of a credit limit that cardholders use, excluding any delays, stood at 35.2 percent. This marks an uptick of 3.3 percentage points from the same period in the previous year and represents the highest utilization level observed in the past five years. The rise in usage reflects greater confidence in card-based purchasing, but it also points to heightened reliance on revolving debt among households. Analysts note that while borrowing capacity remains relatively available, the accompanying risk indicators have shifted, with more account holders nearing or surpassing comfortable repayment thresholds. Such dynamics can ripple through consumer demand, interest income for banks, and the overall health of consumer credit portfolios as economic conditions evolve.
Oleg Lagutkin, General Manager of the bureau, projected that this utilization metric could stabilize in the mid-30s range, hovering around 34 to 36 percent in the coming months. If that stabilization occurs, it would imply a normalization after a period of volatility rather than a dramatic surge. For policymakers and financial institutions, this range provides a critical signal about consumer cash flow and debt management norms, suggesting that households may be balancing higher credit activity with more disciplined repayment behavior, albeit with some elevated risk still present for overextended accounts. Such an outlook also invites considerations on how credit limits, pricing strategies, and incentive programs might shape borrowing patterns in the near term.
In April, the bureau’s press service highlighted a notable milestone from the 2022 timeframe: the rate of using two or more loans in Russia exceeded the 50 percent mark for the first time. The significance lies in the shift toward greater debt diversification—households leveraging multiple types of credit can indicate both greater financial mobility and heightened exposure to repayment challenges. This pattern raises questions about the sustainability of debt portfolios, the effectiveness of borrower education programs, and the durability of consumer confidence in a landscape of fluctuating income and cost pressures. Financial institutions may respond by adjusting underwriting criteria, monitoring strategies, and support options for borrowers juggling several credit commitments as the economy evolves.
Earlier in the year, Galina Sorokina, a professor at the State University of Management who specializes in world economy and international economic relations, advised strongly against borrowing for the sake of celebrations or recreational spending. The recommendation underscores a broader principle: borrowing should be aligned with tangible value and long-term financial planning rather than episodic advantages or social pressure. In a climate where credit availability remains accessible but the risk of delinquency tightens, prudent borrowing decisions become essential. Consumers are urged to assess their monthly cash flow, consider emergency reserves, and weigh the true cost of debt, including interest charges and repayment timelines. For analysts, such guidance helps frame consumer sentiment and behavior, offering a counterbalance to aggressive spending patterns that might otherwise fuel short-term consumption but threaten longer-term financial stability. The overarching message is clear: thoughtful, deliberate use of credit supports sustainable personal finance and reduces the likelihood of overdue balances that strain both households and lenders. [Citation: Credit History Bureau Attribution]