What will happen to people who rely on credit cards to survive?

People who live on credit cards will eventually face two situations:

One: living on the loan to support the loan or the wife and children being separated after overdue payment

Second : Use bank money to do your own thing, and get better and better

Most people are the first type, and a small number of people are the second type

It’s not just based on feelings. Data

It is data derived from logical reasoning

Look below:

The first type of people: do not understand the product; they do not understand the business of using loans. ; I heard that credit cards are very useful, and I heard that stocks can make money, but I fell into the debt trap without knowing it!

1. Regarding the product, can you answer these questions in your self-test?

The interest in the advertisement is 2 yuan, does that mean daily interest or monthly interest?

What is the minimum credit card interest rate? How is it calculated?

There is an approval chain between banks and institutions, did you know?

Do you know how to calculate overdue interest?

Can you answer it? After talking about the product, let’s see how they spend the money

2. The way they fell into debt crisis is probably as follows:

All my friends around me are using credit cards, so I I used it

My friend said that if I install this credit card, I can use it

My friend said that if I install a machine, I will get more money from the debit card

More money , my friends have all made money by managing their finances

Can I start a business and open a milk tea shop? I think the business is good

Oh, I can’t finish it yet. It’s okay. I can reverse my card. It saves a lot of money

Oh, I can’t reverse it, it’s okay, there are still online loans

I can’t even get the online loan, and my friends are gone. . . . . .

Are you familiar with this process? Let’s see what the second type of people do

The second type of people: always work within their own circle of competence, avoid touching things they don’t understand, or invest in small experiments at the boundaries of their abilities.

1. Have studied the interest rates of various bank products; the qualifications required to apply for products; how much profit is needed to balance or exceed the money spent; what are the country’s recent policies?

2. Study first, research, and consider carefully before deciding which one to use

3. Don’t gamble

4. Don’t follow the crowd in financial management, but choose what you understand or are sure to be able to Exceeding the interest rate

5. When running a business, you must be well-focused on projects that require a lot of money. If you cannot see profitable projects, you will not use credit card money to do your best!

So I say there are fewer people in the second category, because these are the elites among the elites. Some people don’t have the patience to finish reading an article. You ask them to research products? Independent thinking and judgment?

After all, remembering simple things, tending to make mindless decisions, and doing whatever others do is the natural state of our human brains after evolution. It is too difficult to overcome it

So stop blaming the banks, these consequences are obviously our own fault. If we don’t realize the scope of our circle of competence, do things we don’t understand, and don’t learn, it’s normal to be cut off like a leek and deceived.

What we should do is: never make this mistake again in the future, learn to do research and learn to make independent judgments before making decisions

I know this answer does not cater to everyone’s taste. But it is quite meaningful to let everyone get some thoughts from the mistakes. At least you can reflect on whether you should take the time to study the interest rate of the product and which loan is more cost-effective to pay off first? What regulations are based on the personalized negotiation? How can I fight for my own interests? It’s all just money. Why don’t you do it?

There really seem to be more and more card slaves around me, so I feel it is really necessary to talk about credit cards.

Credit cards are a product of the Western banking system. This thing became popular in the United States. It is well known to the world that Americans are very poor. But is the ancestral motto of our ancestors, “Be diligent and thrifty in running a household and live within your means” wrong? In fact, judging from the situation at this stage of the epidemic, there is no such thing.

In the United States, not many families can afford two hundred dollars at once. I have a friend who deposited $5,000 in a Bank of America, and the whole bank came out to "visit" him. Yes, Americans don’t have the habit of saving. They are just used to spending tomorrow’s money today. So what are the consequences of this kind of credit overdraft? In 2008, the subprime mortgage crisis that swept the world came from the consumption habits of Americans. As long as you are a U.S. citizen and have the need to buy a house, we can lend you money. If it still doesn't work, it doesn't matter. You can securitize the bad debts and have the secondary market pay for it. Then the brokerage will remortgage and refinance these assets. Originally, The crisis was not that big, but after financial derivatives passed, this snowball was enough to crush all living beings. Therefore, the advanced consumption view of the United States has been proven to be wrong. During the epidemic, why can the Chinese work at home for several months without any problem, but why can’t Americans? Because they don’t even have 200 US dollars in cash, and online payment is not yet developed in China. If you don’t let them go to the supermarket to swipe their credit cards, they will get stabbed in the neck.

Looking at China's credit card crisis, I put it more seriously. I call it a "credit card crisis." Because this kind of thing is originally an imported product, something Americans play with. Then for a while, almost every employee in the bank had a task to push credit cards. It seemed that the tellers at the grassroots level could be assigned tasks of twenty cards, let alone the upper levels, who could also be assigned tasks of hundreds of credit cards. But what are the consequences? It is the younger generation in China now. When they are economically weak, they should have thought about their own strengths and the turning point of their future livelihood. Alas, they actually discovered that with credit cards, they don’t have to struggle for the time being.

The better your credit, the more the bank will trust you and give you a higher limit. Then I will study how to improve your credit and increase your limit.

In the past few years, everything from consumption flow creation to various fancy repayments, from small installments to multi-transaction hedging has been done flawlessly, and the bank's back-end system has increased their credit card limits. rising.

She ignored the bank's recommendations for financial management, consumer loans, reserve funds, universal funds, all kinds of high limits, and fancy packages.

Without Jingdong Baitiao, Huabei never uses it.

She only believes in credit cards.

How to solve the credit crisis

It’s very simple, start with the big guys. The money is in other people's hands, but he doesn't take out a dime, and the people are so angry that they can't do anything. The US-Afghanistan affairs are internal affairs, and there is no intention or need to interfere. But credit is a major issue in the world, and the world is above all countries. Rules: If half of the deposit is returned to the depositor, half of the credit will be given. If all deposits are returned to the depositor, all credit will be given. From now on, people in the world can only have half-trust in those big shots who are only willing to give half. So far, only Chinese people in the world have achieved this complete credit and absolute trust. Just like Liu Bei entrusted his orphan to the gentleman Zhuge Liang, King Wu entrusted his orphan to the gentleman Zhou Gong~.

The crisis curse of credit cards

The face of banks can change at any time.

Once upon a time, credit cards even won the favor of the "Huabei generation" with their convenience, high limit, low interest rate, and wide range of benefits. Many people chose to "deduct fixed rent from their monthly salary" After spending, save or invest to earn interest, and rely on credit cards for daily consumption, from which you can earn a slim interest rate." Although it is not much, for young people who "can buy clothes for 1,000 yuan, but cannot bear the postage of 5 yuan", no matter how little it is, it is still money, maybe it can be enough to earn a cup of milk tea, which is a kind of "sense" way of doing.

However, the good times did not last long. Credit cards have gone through a period of brutal expansion, with growth slowing down and non-performing rates rising. Especially after experiencing the impact of the epidemic in the first quarter of 2020, a group of users have become increasingly unstable. To repay loans, even if credit cards account for a small proportion of each bank's business, banks are still under considerable pressure.

Credit cards seem to be less popular: banks have begun to reduce credit limits and limit consumption on a large scale, points and rights have been cut to pieces, and users on major complaint websites have complained, claiming that their rights and interests have been damaged. So why did the bank suddenly change its attitude?

It has been more than 60 years since the world's first credit card appeared; the earliest credit card issuer in China was the Bank of China. In 1985, China's first credit card - "Bank of China Card" was launched in Zhuhai, opening up It describes the 35-year development history of China’s credit card industry.

According to the "Overall Operation of the Payment System in 2019" data released by the People's Bank of China, as of the end of 2019, the number of credit cards and debit and credit cards (with the characteristics of a credit card) in use totaled 7.46 100 million, a year-on-year increase of 8.78%; the average number of credit cards and debit cards held per capita was 0.53, a year-on-year increase of 8.36%.

"A total of 746 million cards" and "0.53 cards per capita". Looking at these two data alone, there is actually not much concept. Extend the timeline to 2011 and review the development of China's credit cards in the past 10 years. The clues are visible.

It can be found that: 2011-2014 can be called the "crazy expansion period" of credit cards, with an average month-on-month increase of 4.31% in the number of credit card issuances; 2015-2017 is the "braking and slowing down period" of credit cards, with the number of credit card issuances increasing The average month-on-month growth rate dropped to 2.27%; from 2018 to 2020Q1, credit cards entered a "stable operation period", and the average month-on-month growth rate of credit card issuance rebounded slightly to 2.74%, with the overall growth trend showing a slowdown.

Among them, in 2020Q1, the number of credit card issuances increased by 0.32% from the previous quarter, which is the lowest value since 2017Q1. The per capita number of credit cards has also remained at a level of 0.53 for three consecutive quarters.

Therefore, throughout 2020Q1, the growth rate of total bank card credit slowed down, the growth rate of total outstanding loans overdue for half a year, and the proportion of total outstanding loans overdue for half a year both increased significantly. To a certain extent, It can reflect the dilemma faced by credit cards of "slowing growth and rising non-performing rates".

The emergence of dilemmas is inevitable.

The force majeure factor is the impact of the epidemic, which has caused many people to have their salaries cut or even lose their jobs. They have lost their basic source of livelihood. Credit card repayments have naturally become a problem, and "passive overdues" are higher than usual. more common.

In addition to the impact of the epidemic, there is another long-standing problem that cannot be ignored. Chen Jianing, a senior researcher at Suning Financial Research Institute, said, "The overall capital cost of cashing out credit cards through POS machines is very low. Under this circumstance, credit card cashing has gradually evolved into a 'black product'. As the management department of credit cards, Bank credit card centers are actually clean, but in the early stages of development, they adopted a tacit attitude towards 'illegal products'."

“Develop first, then govern.” The scale of credit cards has grown. Taking advantage of the problems reflected in the 2020Q1 credit card data, it is time to “set things right”.

Banks "change their faces", regulatory tips

Chen Jianing believes that at this stage, all banks already have a large enough volume in credit cards, and there is a huge demand for this kind of gray channels and traffic. If it is not that big, we will find ways to rectify it to tighten the risk. In addition, banks may also face regulatory pressure.

According to the latest information disclosed on the official website of the Guangdong Banking and Insurance Regulatory Bureau, on July 16 and 17, two penalties for violations of Guangfa Bank’s credit card business were announced for two consecutive days, which means that risk control is not in place. Guangfa Bank received a total fine of 4 million yuan, which shocked the entire banking industry's credit card business.

Regulations take the lead in regulating the credit card market, and banks naturally dare not neglect it. Guangfa, Ping An, CITIC, Industrial, Shanghai Pudong Development, China Merchants Bank, and Communications have begun to step up risk control upgrades.

The first is to limit consumption.

That is, the bank adjusts the credit card limit of the cardholder based on the cardholder's financial status, repayment and overdue status, and "kills" the possibility of risks from the source; for cardholders with higher risks , the bank can even close its credit card directly.

Objectively speaking, the bank’s measures to restrict consumption are normal risk control measures. Because the credit card itself is based on the cardholder's own credit, when the cardholder's credit is poor, the bank will bear greater risks unilaterally, and it will also destroy the contract between the cardholder and the bank. The bank has the right to take Take appropriate actions to protect your own legitimate interests from being infringed upon.

So, when your credit card is suddenly restricted for consumption, first check whether you have repaid the loan on time and whether there is any overdue behavior.

Through the Black Cat Complaint Platform, some users reported, “I am an old user of Guangfa Credit Card for many years, and I have made normal repayments when handling Caizhijin. In the past year or so, I have been unable to make installment payments with my credit card due to merchant consumption restrictions. I hope Guangfa Bank can lift the restrictions. "Old users" and "normal repayments" are still restricted from consumption, and even cannot make installment repayments with their credit cards.

Many consumers even complain that credit cards are becoming more and more boring, becoming a bit "tasteless", tasteless, and a pity to throw away.

If the user feedback is true, China Guangfa Bank’s approach is really inappropriate. This “one size fits all” approach is simple and effective for a few speculators, but it invisibly harms the majority of people who abide by the law. . Banks need to treat customers differently and effectively safeguard the legitimate rights and interests of users through a more humane approach.

Also, the points rights of credit cards have been significantly "shrunk".

Recently, joint-stock banks such as China Guangfa, Minsheng, Industrial Bank, China Xia Xia and CITIC, which are “pioneers in issuing credit cards”, have launched a heavy attack and begun to adjust the way credit card points are accumulated, resulting in a significant “dive” in credit card points rights of cardholders.

On July 13, Industrial Bank issued an announcement announcing adjustments to points rules; Guangfa Credit Card added 1.0269 million merchants to the list of merchants that do not accumulate points; Minsheng Credit Card announced the cancellation of transactions with 19 third-party payment institutions such as Lakala. Accumulated points; among city commercial banks, Chongqing Bank’s accumulated points for credit card transactions have shrunk by 10 times. Now you need to use 10 times the previous points to exchange for the same goods, and the cost-effectiveness of points has plummeted.

Credit card "black products" can be used to obtain cash or points, which can be used to exchange for goods. Points play a part of the "currency" role.

Restricting consumption is mainly to prevent cashing out on credit cards and reduce the probability and extent of losses; while cutting off the points rights of credit cards is to block the way for speculators to obtain points. With a two-pronged approach, the market response is still very rapid. of.

In addition to punishing some banks that violate regulations in their credit card business, supervision also does not forget to provide reminders to cardholders. On June 30, the Consumer Protection Bureau of the China Banking and Insurance Regulatory Commission issued the "Consumption Tips on the Reasonable Use of Credit Cards", reminding cardholders to "correctly understand the functions of credit cards, use credit cards rationally, establish scientific consumption concepts, consume rationally, and overdraft appropriately."

Compared with the penalties imposed on banks by the China Banking and Insurance Regulatory Commission and the restrictions imposed by banks on cardholders, it is actually the best way if cardholders can reduce the risk of overdue credit cards through self-discipline; but at present, Many cardholders have formed bad card-using habits, and it may be better to apply external pressure.

Aiming at the arbitrage behavior that exists in the credit card market, can limiting consumption and reducing equity points play a good role? At least on the surface, the public seems to be "directly affected by the problem." The problem is with the cardholder, and there seems to be nothing wrong with imposing restrictions on them. However, Lu Ying, general manager of Ping An Bank Hangzhou Branch, put forward a different view.

Lu Ying believes that if we want to consider the compliance and strict control of credit cards, it depends on whether the acquiring output end is strict. At present, it is still relatively loose. Many banks still outsource their acquiring business, which leaves a lot of room for risk and loopholes in packaging and industry selection.

As for the behavior of cashing out, Lu Ying said that the bank will not intervene manually. It is all computerized and the process has been automated. The measures taken by the bank, whether it is restricting consumption or reducing equity points, are more likely to show to the bank's banking supervisor that it has taken some measures to control credit card risks.

So, if banks want to truly reduce credit card risks, they should not just focus on the cardholders, but also start with the acquiring institutions. Without "helpers", where will it be? risk.

But this involves whether the bank is willing or not. As an ordinary cardholder, I hope from the bottom of my heart that regulatory agencies and banks can truly rectify the chaos in the credit card market, so that cardholders who abide by the rules can get their due rights, and they should not be made to feel that credit cards are more and more It’s no longer interesting; when they feel that credit cards are no longer interesting, they may be ready to abandon them at any time and turn to Alipay’s Huabei and Jiebei, WeChat’s Weilidai, JD Finance’s white bars and gold bars, and various high-quality and low-priced consumer financial products. .

“If you ignore them now, you will be unable to reach them in the future.” By then, banks will inevitably pay a greater price to regain their trust.

When can the crisis curse of credit cards be truly broken?

Due to space limitations, I cannot attach all the content, but I would like to thank many professionals for providing very valuable perspectives and rich cases during the writing process of this article. Special thanks (listed in no particular order): < /p>

Lv Ying, general manager of Ping An Bank Hangzhou Branch, and Chen Jianing, senior researcher at Suning Financial Research Institute.

How to solve the credit card debt crisis?

It’s only over 3,000 and I owe 20,000. Now there are more than 3,000 people alive. Find a credit card company that will give you 100 yuan a month and they will help you out.

What does it mean that the card has been disabled?

Has been disabled means usage is restricted and may have been frozen.

Credit cards may be disabled for many reasons, such as possible fraud or abnormal usage, overdrafts that have not been repaid, abnormal card status, or the credit card does not support transactions, etc.

Credit Card (English: CreditCard), also called credit card. It is a non-cash transaction payment method and a simple credit service. Credit cards are generally 85.60 mm long, 53.98 mm wide, and 1 mm thick, special carrier plastic cards with consumer credit. It is issued by the bank to individuals and organizations, and can be used to shop, consume, and deposit and withdraw cash from the bank. It is in the form of a card with the name of the issuing bank, validity period, number, cardholder name, etc. printed on the front and a magnetic card on the back. strip, signature strip.

Credit cards are issued to cardholders by banks or credit card companies based on the user's creditworthiness and financial resources. Cardholders do not need to pay cash when using the credit card, and repayment will be made on the billing date (English: BillingDate). Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards issued by banks and give cardholders a certain credit limit, and the cardholders can consume within the credit limit and then repay; quasi-credit cards It refers to a quasi-credit card issued by a bank, and the cardholder is required to deposit a certain amount of reserve fund. When the balance of the reserve account is insufficient for payment, the card can be overdrafted within the specified credit limit. The so-called credit card generally refers to a credit card only.

China’s credit card market is still one of the fastest-growing product lines in China’s personal financial services market. Although the economic benefits of the industry are full of challenges, driven by economies of scale and growth in consumer spending, China’s credit card market will continue to grow in the next 10 years. The average annual growth rate of credit card issuance will remain at around 14%, and profitability will also tend to improve. It is expected that by 2020, the cumulative number of credit cards issued in China will exceed 800 million.

The invention of credit cards is like a double-edged sword, which can solve the temporary economic crisis. However, the purpose of banks issuing credit cards is to make money. Once the interest-free repayment time is exceeded, high interest will be charged. , generally an interest of 0.05% per day.

How much is involved in the crisis caused by the proliferation of credit cards?

For some children who don’t understand and can only rely on search to answer questions, don’t you know that at present, the two banks ICBC and China Merchants Bank has issued more than 10 million credit cards, and the total number of credit cards exceeds 30 million, not counting other banks.

Credit cards are not guilty, but those who pretend to understand and continue to mislead others are guilty.

At the beginning of the year, I saved more than 3,500 RMB to buy a consumer-grade digital camera. I originally paid the 3,500 RMB directly in one lump sum, but at that time, Suning Appliance had an event and I swiped my China Merchants Bank card. For installment shopping, I received blankets and red envelopes (N coupons from merchants), and I had a China Merchants Bank card, so I bought the camera in installments. Originally, if I paid directly, nothing would be given. I swiped my card, and it was paid in installments, and I got something as a gift. Why not? In addition, China Merchants Bank's cards are free of charge and interest in 3 and 6 installments at Suning. I divided it into 6 installments, which means I can repay the money over 6 months without incurring any other extra expenses.

Then I bought all the 3,500 that I had spent at the beginning of the year on "Boshi Selection". At the time of purchase, the net value of this fund was more than 0.9 yuan, and I bought more than 3,000 shares. Plan to redeem a little before the monthly payment to pay off the loan.

It was divided into 6 installments, and each installment only cost more than 500 RMB. Later, I no longer redeemed the fund every month to repay the loan, so I took out more than 500 RMB from my salary every month to repay the loan. Go check it out again, what is the net value of the Boshi Select fund now? It’s more than 2 yuan. The more than 3,000 funds I bought for 3,500 are now worth more than 7,000. Because swiping the card is equivalent to picking up a camera for nothing, hehe!

The key is to look at yourself. If you don’t know anything and don’t understand anything, then you’d better stop. In addition, before buying something, we must first consider whether it is really necessary for us to buy it, and do not transfer the fault of our self-discipline to the credit card.

Above!

That’s it for the introduction to China’s credit card crisis.