According to data from the "2020 China Youth Debt Situation Report", the average debt of young people nationwide has exceeded 130,000 at this stage, and the debt of those born in the 1980s has exceeded 20,000. Ten thousand. Behind this terrible data, it actually reflects the economic development problems of this era.

The influx of credit cards has changed young people’s consumption outlook

At the 1979 Autumn Canton Fair, in order to facilitate participation in the fair, Bank of China signed a contract with the Bank of East Asia in Hong Kong to act as an agent for "East America Credit Card" to withdraw cash. The agreement introduced foreign credit cards to mainland China for the first time. Later, under the suggestion of Zhou Bingzhi, a member of the credit card preparatory team of the former Bank of China Zhuhai Branch, a feasibility report on vigorously promoting credit cards was formed in the Zhuhai area.

After the report was handed over to the Bank of China Head Office in Beijing, Li Yumin, then deputy governor of the Bank of China Head Office, made an evaluation. Li Yumin felt that in the context of reform and opening up, the most important link in development was to mediate the allocation of market resources, and Credit cards are undoubtedly an indispensable financial product in this segment. Therefore, under Li Yumin's active promotion, Bank of China decided to issue its own credit card, and approved the Zhuhai branch to pilot it first.

Credit cards have begun to take root in the Chinese market. At first, credit cards were issued only to some people with financial strength. Having a credit card is a status symbol. With the development of the financial system and the development of various industries to drive employment, bank risk assessment has been relaxed. Now as long as you are over 18 years old, you can apply for your own exclusive credit card.

Young people’s consumption outlook has been completely changed. Rather than saving enough money to enjoy the convenience of a certain product, young people prefer the model of consuming first and paying later. There is nothing wrong with spending money this month and next month. The key to the problem lies in this model, which allows young people’s consumption power to continue to be leveraged and amplified.

When the repayment date came, I found that my salary was no longer enough to pay off the credit card bill. So the bank introduced a minimum repayment model. Pay off 10% of the bill first, and the rest can be paid back at any time when you have money. You only need to pay 0.05% more interest every day. The interest rate may seem low, but in fact it is very high. Taking 10,000 yuan as an example, the interest is 5 yuan per day. If calculated as 365 days in a year, the interest is 1,825 yuan. The annual interest rate is 18.25, far exceeding the 14-15% level protected by state law.

Being attacked by the loan products of major financial institutions

In order to promote consumption and vigorously develop the economy. Various consumer loan products are also constantly emerging on the market. If you went to buy an electronic product in 2012, the salesperson would recommend consumer loan products to you. It was at that time that Home Credit won the Chinese consumer loan market.

There are also Bank of China Consumer Finance and JD Baitiao. Since these institutions have made profits, it seems that as long as they have sufficient funds, they will release products for harvesting. Weili Loan, Installment Loan, Huabei, Payback, Save, Borrow, all kinds of Bai applications are born.

Today’s young people, as long as they have searched for loans online or used Huabei, their behavior will be captured by financial institutions using Internet crawler technology, so an overwhelming number of harassing phone calls will be made. Li: Hello, I am a staff member of xx financial institution. The limit of xx product that I will give you is tens of thousands...

Some people were forced to pay because they owed too much money to financial institutions and were unable to repay it. I have no choice but to blame myself for reaching this point. Some even feel that there is no hope of repayment and end their precious lives. Where will the fate of these people go? Who will pay for their debts? Except for parents and children who are obliged to repay, others can only sympathize.

Where to go

However, on March 1, 2021, the Personal Bankruptcy Law came into effect. After the personal bankruptcy is verified, the debts will be cleared. Finally, time has come to save them