The tiered interest period has started for credit cards! Those with lower debt will pay less interest.

```html

Recently, due to the increase in the number of people falling into legal proceedings because of credit card debts, the Banking Regulation and Supervision Agency (BDDK) has implemented new measures. Accordingly, a restructuring option has been introduced for credit and card debts with a maturity of 60 months.

Another regulation made by BDDK came into effect on November 1. According to this, the maximum contractual (shopping) interest rates on credit cards will vary based on the period debt. Those who spend less and pay the minimum of their card debt will pay lower interest on their outstanding debts. In other words, with the new regulation, those with low debts will also have lower interest payments.

With the regulation, three spending limits have been determined: below 25,000 lira, between 25,000 and 150,000 lira, and above 150,000 lira. Interest rates will also vary according to these three spending limits.

PAYMENTS HAVE BEEN GRADUATED

According to a report by Milliyet, experts state that the new application was initiated to prevent the inflation of credit card debts, saying, "Even though policy interest rates have not decreased, the interest rates on credit card debts will be graduated starting from the reference interest rate of 3.11%. Thus, an opportunity will be provided to pay off debts with more favorable financing. Before the policy interest rate, which is expected to decrease at the beginning of the year, such an opportunity can be considered an expansionary policy."

REFERENCE RATES WILL BE TAKEN AS BASIS

Previously, a monthly contractual interest rate of 4.25% and a late payment interest rate of 4.55% were applied to all cards. In the new situation, starting from November 1, the applicable interest rates will be determined according to the reference rate announced on October 24. The Central Bank announced the reference rate as 3.11% on October 24. In this case, as of today, the interest rates to be applied based on the card's period-end debt will be as follows:

- If the period debt is below 25,000 lira, the maximum contractual interest rate will be 3.50%, and the maximum late payment interest rate will be 3.80%.

- If the period debt is between 25,000 and 150,000 lira, the maximum contractual interest rate will be 4.25%, and the maximum late payment interest rate will be 4.55%.

- If the period debt exceeds 150,000 lira, the maximum contractual interest rate will be 4.75%, and the maximum late payment interest rate will be 5.05%.

- For corporate credit cards, regardless of the period-end debt, a contractual interest rate of 4.75% and a late payment interest rate of 5.05% will be applied.

- For cash withdrawals from credit cards and overdraft accounts, the interest rates remain unchanged. The maximum contractual interest rate is 5%, and the maximum late payment interest rate is 5.30%.

INTEREST ON CASH WITHDRAWALS FROM CREDIT CARDS AND OVERDRAFT ACCOUNTS HAS NOT DECREASED

Despite the gradual application of interest for credit card debt restructuring and personal loan restructuring, the interest rate applied to cash withdrawals from credit cards and overdraft accounts has not changed. The main reason for this is to withdraw excess money from the market to reduce total demand due to the continuation of a tight monetary policy and to ensure that spending is minimized.

THE AIM IS TO RELAX CITIZENS

The regulation is particularly a supportive application for the real sector and citizens during periods of tight monetary policy and monetary constriction. Before the interest rates are expected to decrease at the beginning of the year, restructuring debts is a very positive application for citizens to take a breath and to somewhat preserve their purchasing power. I believe it is an application that will somewhat reduce inflationary pressure. Individuals will be able to plan their spending according to their budgets by restructuring these debts and will gradually pay off their debts. People will tend to spend less, which will also have a deflationary effect.