Over recent months, a central bank has kept pushing the policy rate higher, lifting it from 16 percent to 18 percent. Officials anticipate further increases as inflation stubbornly resists reduction. Yet price growth remains tenacious, and analysts quip that the policy tools act more like a spark than a brake. The central bank’s department says the aim is to cool borrowing appetite, while observers point to a paradox: debt burdens continue to rise and loans come to be valued in their own right. Some financial voices have long claimed that credit serves as an investment, and many listeners seem to accept that notion at face value.
At times, financial headlines feel like a rapid cyclone of unlikely stories.
Reports from Russia describe a rise in borrowing even as prices for banking products climb across the board.
Consumer lending in the first five months of 2024 showed notable growth. In 2021, when the base rate climbed from 4.5 percent to 8.5 percent, year over year gains reached 741 billion rubles. By comparison, pre-crisis levels stood at 1,005 billion. Auto loans, in particular, displayed remarkable momentum, with commentators noting unprecedented levels. During the period of January to July 2023 when rates were low, monthly increases averaged about 31 billion; in 2021 they averaged 19 billion, and today that figure hovers around 100 billion.
Accounts from a car dealership credit manager confirm a visible rush to finance high priced vehicles. People earning roughly 80,000 rubles a month often sign eight year auto loans with payments near 70,000 rubles. Some buyers carry multiple loans and still receive approvals. When mortgage approvals tighten, banks grow more risk averse, yet auto credit does not appear to share the same restraint. Incidents do occur, such as borrowers returning to dealers to return vehicles or cancel loans after realizing funding gaps or job losses. Banks shrug off such outcomes, arguing that bankruptcy would not help. Meanwhile bankruptcies have begun to trend toward record territory.
What happened to those who believed in a new saving paradigm built on credit The narrative shifted from credit being merely a loan tool to the idea that it can somehow protect or even grow savings.
Investing in assets that quickly lose value, like metal backed savings or depreciating goods, has proven risky. There was a period when experts urged diversification into gold, yet many Russians opted for physical assets that depreciate over time. Cars became a notable case: post 2022 price surges left many families facing higher costs, with some selling another asset to cover mortgage gaps after dramatic market moves. Getting a loan at high interest to save on a future price dip proved a risky bet and often a costly miscalculation.
Even more unconventional pathways have appeared. A friend described a form of financial literacy that borders on collective risk taking: groups with mixed incomes pool resources to secure joint mortgages on development sites, betting on capital appreciation after construction. The premise relies on shared risk, with each member contributing as they can and then dividing profits later. The approach has drawn cautious skepticism and earned a reputation for being a high stakes experiment.
Some seminars and workshops describe a carousel of credit cards as a clever strategy to maximize liquidity. The idea of leveraging multiple cards to chase higher yields persists, yet the reality for most users is difficulty meeting grace periods and facing steep interest rates. Critics argue that the underlying math rarely holds up in practice, and even instructors who demonstrate such tactics have faced challenges themselves. The bottom line remains that skepticism toward traditional financial literacy can be a valid stance for many.
Across the board, debt appears to outpace the growth of assets. Real estate prices and other major purchases have not kept pace with inflation, leaving many to wonder about the sustainability of this debt driven approach. The central bank’s actions — frequent rate adjustments — may aim to curb risk tolerance, but the broader economy seems unwilling to curb appetite for credit. Some observers worry that an overextended credit culture could undermine financial stability unless more prudent habits take hold.
In sum, the scene described here presents a mix of ambition and miscalculation, where individuals chase growth through leverage without fully accounting for the potential downsides. Analysts note that the trend might be shaped by a blend of policy signals, market sentiment, and ongoing economic pressures. The discussion remains open, with many weighing the costs of debt against the promise of asset appreciation and lifestyle aspirations, all while regulators and lenders navigate the balance between risk and opportunity.