One in five Russians of working age has two or more loans. Since August, the share of such borrowers in the total number of borrowers has increased, while the share of those who have difficulty paying their debts has also increased; currently one in three. The share of borrowers with high and inflated credit burdens has also increased: one in six people now spend half their monthly income on debt repayment, and 4% spend almost their entire salary. This was demonstrated by a survey conducted on the Credit Assistant service (part of the CosmoVisa group of fintech services), the results of which were reviewed by socialbites.ca.
56 percent of survey respondents reported using credit. Specifically, 28% reported having one loan, one in eight (20%) reported having two loans, and 8% reported having at least three loans. Compared to August, when a similar survey was conducted, the proportion of those with two or more loans increased. By comparison, 35% of respondents in August reported having one loan, 14% reported having two loans, and 5% reported having three or more loans.
One in three respondents find it “difficult” (22%) or “very difficult” (13%) to pay off their loans, and one in five (21%) periodically miss their repayment schedule. The rate of participants having difficulty paying loans was 6 percentage points higher in August. was lower than now, and the proportion of participants not complying with the repayment plan was 4 percentage points lower. The majority of participants who have difficulty paying loans have two or more loans.
More than a third (42%) of respondents pay 10-30% of their income, 24% – 30-50%, 18% – more than 50% and 4% – 80% spends. from their income. The rate of those who committed to repaying their loan debt up to 10 percent of their income was only 12 percent.
For comparison, in August, 3% of respondents committed to repaying 80% of their income, 16% committed to repaying 50% of their income, and 19% committed to repaying 30-50% of their income.
“In a difficult economic environment, a high debt burden (the share of monthly income that the borrower undertakes to pay monthly for all his loans), which negatively affects the level of real income, leads to an increase in the number of borrowers with loan debts. Unscrupulous attitude towards loan payments causes the credit score, which banks rely on in the loan decision-making process, to decrease. Dmitry Mikhailov, COO of CosmoVisa, stated that high debt burden and low credit score are some of the main reasons why banks refuse to give loans.
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