First of all, it should be the cancellation of credit cards. There is nothing called cancellation. Literally means to approve the cancellation. From the accounting point of view, it means that some accounts are sluggish and reported for approval for write-off. The reason why banks use the means of write-off when dealing with assets such as non-performing loans and credit cards is because bad debts cannot be completely solved. It refers to the method of forcing the bank to cancel the existing loan account and give some compensation (the amount depends on the situation), so it is definitely a loss for the bank. Moreover, the write-off of bad debts is written off with profits, which will reduce the income of banks in that year. However, the General Administration of the Banking Regulatory Bureau has an index requirement for the non-performing loan ratio of banks. Therefore, banks must comprehensively consider profits and bad indicators to decide whether to write off. Finally, I would like to remind you that the write-off of credit card bad debts is only an internal accounting treatment of the bank, and does not mean that the contract between the credit card holder and the bank is terminated. Credit card holders are still obliged to repay the arrears and all the interest payable, otherwise the bank will still pursue it according to law.