Is the country facing a debt crisis? Experts weigh in.
A recent survey by Vyberi.ru indicates that nearly half of Russia`s population (49%) carries some form of debt. Consumer loans constitute the largest portion of these debts, with two-thirds of borrowers making payments. This is followed by credit card debt (44%) and mortgages (28%). These figures raise important questions about potential risks to the Russian economy and how citizens can effectively manage their financial burdens. Experts have offered their perspectives on these issues.
A significant number of new loans are taken for specific reasons: 36% of Russians reported acquiring new debt to prevent existing obligations from falling into prolonged arrears, 24% aimed to improve their credit history, and 19% did so due to a decrease in income. Given that Russia`s working population in Q1 2025 was 75.5 million people (according to Manpower Russia), and loans are generally not approved for unemployed individuals, approximately 38 million Russians are currently indebted to financial institutions.
Breaking down the types of financial commitments, 61% of those with debt are repaying consumer loans, 44% are servicing credit card debt, 28% are making mortgage payments, and 12% have loans from microfinance organizations (MFOs).
The size of these debts also varies widely: 35% of citizens owe up to 200,000 rubles, 41% have obligations between 200,000 and 1 million rubles, and nearly a quarter (24%) owe more than 1 million rubles. While these statistics may appear concerning, experts assert that Russia is not on the verge of a debt crisis, nor is one anticipated in the near future. Elman Mekhtiev, CEO of the Association for Financial Literacy Development, explains that the mere existence of debt is neutral; the real concern arises when the debt burden is high, meaning debt payments exceed a significant portion, such as 50%, of a borrower`s income.
Meri Valishvili, an Associate Professor at Plekhanov Russian University of Economics, agrees, stating that the overall lending market situation is not critical, especially considering that roughly 30% of total debt is comprised of mortgage loans. These are typically long-term commitments, with payments distributed over many years, making them generally manageable despite their substantial share of income. Furthermore, the Russian banking system is protected from a debt crisis, as the Central Bank of Russia actively regulates the debt load of citizens. The Central Bank has already tightened requirements for banks issuing unsecured loans, which has led to a decrease in loan approval rates to 21.4% in July, as reported by the National Bureau of Credit Histories (NBKI).
Natalia Milchakova, a leading analyst at Freedom Finance Global, supports the view that the 49% figure indicates a well-developed credit market in Russia, rather than an impending crisis. She emphasizes that the key indicator is the average debt-to-income (DTI) ratio. If this ratio is below 30% for the majority of borrowers, it does not pose a critical threat to the economy or to individuals. In such cases, the primary focus should be on avoiding further debt accumulation.
Interestingly, the same study reveals that 31% of debtors have taken proactive steps this year to manage their repayments. These actions include creating personal financial plans, accelerating loan repayments, or seeking debt restructuring and consolidation. Milchakova suggests several strategies for faster debt elimination: first, actively seek ways to increase income through part-time work or self-employment; second, consider refinancing existing loans at lower interest rates as the Central Bank`s key rate is expected to decrease further towards the end of the year; third, before taking out large bank loans for major purchases, explore borrowing from family or friends to avoid interest and insurance payments; and finally, if feasible, sell valuable but unused items to reduce the need for additional credit and prevent an increased debt burden.
