Category: Business/Financial Management gt; gt; Trade

Analysis:

KANU

"KANU", as the name suggests, means holding Card users become slaves of credit cards and cash cards. First originated in Taiwan. According to statistics, there are currently 400,000 "Kan slaves" in Taiwan.

In recent years, stories about "Kanu" have appeared in newspapers on the island from time to time. According to reports, a young man named Xiao Ming, who was full of entrepreneurial dreams, saw a bank advertisement that "helps you realize your dreams early." He was so excited that he borrowed more than 1.5 million yuan (NT$1.5 million) through cash cards, credit cards, and microfinance loans. , the same below, approximately HKD 375,000). Unexpectedly, the investment was not as expected. After five years, the loan amounted to more than 5 million yuan. Currently, the minimum monthly repayment amount is as high as 168,000 yuan. Xiaoming and his wife work part-time, and their monthly income is only 110,000 yuan.

According to statistics, more than 9 million people in Taiwan have credit cards and cash cards. Conservative estimates suggest that there are about 400,000 "card slaves" among them, and millions of them are troubled by credit card debts with compound interest rates.

The credit card usage rate in the United States, Japan, Singapore, Hong Kong and other places is no lower than that in Taiwan. Why do credit cards cause so many problems in Taiwan alone? According to media reports on the island, cardholders become "card slaves" due to their own reasons for not exercising restraint and over-consumption. Most of those oppressed by loan sharks are low-income people who are deceived by banks' excessive card issuance and obtain spending capabilities that are not in line with their affordability. In addition, the overall economic environment on the island is sluggish and people's income is unstable, which is the main reason for the "card slave" phenomenon.