A field study to determine the impact of personal credit to household economy: The case of Zonguldak.

Rapidly changing economic conditions has led to an increase in the needs and desires of individuals In the globalized World. When individual's income is not sufficient to meet his needs borrowing becomes an option for individuals who are working to maintain a certain level of consumption. credit possibilities provided by money markets, which is a type of financial markets, becomes opportunities for individuals. In Turkey liabilities related to households has risen steadily with the rapidly increasing use of personal loans since 2002 In this study the effect of households access to money market in the way of consumer loans and/or credit cards is aimed to investigate. In the economic literature there are different opinions about the effect of credit facilities impact on the household economy. Some approaches argues that credit use would bring a positive impact on the households economy by helping to solve the problem of payment difficulties. Some other approaches argues that widespread adoption of credit use will led to debt crisis and a deterioration on the balance of income and expenses of households by triggering the uncontrolled and unplanned purchasing activities. In order to determine the effect of accessibility to private credit on the households economy, 1000 surveys were carried out in the central district of Zonguldak. The data obtained by the survey is analyised by using appropriate statistical tests (t, f, chi-square and correlation). Households characteristics and the effects of money market accessibility on household economy are explained in accordance with the results obtained by the statistical analysis of the data. Key Words: Household, Private Credit, Household Debt, Credit Card.