A large number of young people are in debt crisis, and banks are still selling credit cards crazily. what do you think?

Hello, Chu Xiao, a so-called old man who has been engaged in the financial industry for more than ten years, is a national financial planner. He started his first credit card in 2006, and there were more than a dozen at most. He is a standard credit card expert with more than ten years' experience in using credit cards. Please answer this question briefly.

First, understand the concept of credit card.

The credit card stipulated by relevant laws in China refers to the electronic payment card issued by commercial banks or other financial institutions with all or part of functions such as consumer payment, credit loan, transfer settlement and cash deposit and withdrawal.

Credit card, also called debit card, is a credit certificate issued by a commercial bank or credit card company to eligible consumers. It is a card with name, expiration date, number and cardholder's name printed on the front, and a magnetic stripe and signature strip on the back. Consumers with credit cards can go to specialized commercial service departments for shopping or spending, and then the bank will settle accounts with merchants and cardholders, and cardholders can overdraw within the prescribed limits.

Credit card consumption is a non-cash transaction payment method, and there is no need to pay cash when spending, and repayment is made on the billing day.

Secondly, understand the reason why "a large number of young people have formed a card debt crisis"

Under normal circumstances, the benefits of credit card are many, such as emergency, interest-free consumption and so on, and it is also a symbol of a person's credit. However, with the post-90s young people becoming the mainstream group of social consumption, all this has changed, and credit cards have gradually become synonymous with "advanced consumption".

The latest data released by the central bank shows that the bad debt rate of bank credit cards reached a record high last year. Among them, Shanghai Pudong Development Bank has been "unable to stop the car" for two consecutive years, and the bad debt rate has risen rapidly. We must pay attention to this phenomenon, because the high bad debt rate is a very dangerous situation.

What is even more worrying is that many young people have become the main force of credit card debt. Because the concept of consumption is still immature, it leads to blind consumption and advanced consumption. Coupled with the disproportionate income and consumption, credit card liabilities eventually increased significantly. And a large number of young people are burdened with credit card debts, which is actually tantamount to greatly overdrawing the endogenous power of the country's future development and growth.

Especially for some post-90s groups, if they borrow money for reasonable consumption, there is nothing to say. However, most post-90s groups have actually developed the bad habit of spending in advance. For example, some post-90s people may have just joined the work, and their monthly salary is only about 3,000 yuan, but they bought a 10,000-yuan bag and electronic products with credit cards and other lending products. There are also some post-90 s who think they are smart, robbing Peter to pay Paul, paying back loans with flowers, paying back credit cards with loans, and so on, which eventually leads to a vicious circle.

Third, back to the topic "A large number of young people are in debt crisis, and banks are still selling credit cards crazily. What do you think? "

The increase in the use of credit cards has both advantages and disadvantages for young people. The consumption pattern of credit cards has been deeply rooted in the life of our younger generation, symbolizing a new era and a new life. This new consumption pattern has brought a lot of convenience and may also bring a lot of burdens. If there is improper use or overuse, it will bring a certain burden to yourself, which may make the pressure you can bear even greater; If used correctly, it will have a positive impact and make life better. Therefore, we should analyze and understand it from the opposite side.

Banks promote credit cards because they are related to performance. If the bank successfully sells credit cards to customers, its performance will also improve accordingly.

For banks, consumers apply for bank cards, which also increases the use probability. After all, there are many credit card activities, and points are often exchanged for gifts, and these activities will also lead consumers to spontaneously recommend them to friends around them, which will invisibly increase the consumer groups. Moreover, for the convenience of repayment, many people often link the bank's debit card for automatic repayment. The debit card money belongs to the consumer's savings deposit. In this way, consumers' money will basically be stored in debit cards and become active users of banks. For banks, deposits are also one of the important sources of profits for banks, and many financial activities of banks are based on deposits.

An epidemic, a large number of young people have a credit debt crisis, and major banks have also introduced policies to withdraw funds. The result can be imagined! Bad debts are increasing! According to the national policy, usury is strictly prohibited, but at present, various campus loans and cash loans are still emerging one after another. 201Feb. 9 19 credit card repayment policy was adjusted, and major banks also adjusted their policies. I believe that many small partners have more than one credit card, but in the face of overdue, all kinds of collection calls will make people very upset. Faced with so many overdue bad debts, banks are still madly promoting credit cards, which only shows that they are profitable.

This question still gave me a deep feeling. One is to have multiple bank credit cards, and the other is to engage in the financial loan industry.

12 When I graduated, I just entered the workplace. Under the influence of colleagues around me, I got my first credit card, CITIC Credit Card, 6000 yuan. The reason is that colleagues around me said that they could handle emergencies, and they could get points by swiping credit cards at ordinary times, and the shopping malls offered discounts. They are more interested in this and have the first card. In fact, Alipay and WeChat payment were not popular at that time, and consumers could only brush the POS machines of merchants. Later, because I didn't feel the pressure of using paper money, I thought it was just a number. In the next few years, I successively set up credit cards for CCB, China Merchants Bank, Guangfa Bank and other banks, and the quota was basically around 30,000. Because the income is usually better, credit cards are rarely used. After Alipay and WeChat payment, the popularity of hand-painted POS machines, credit cards can directly bind Alipay and WeChat payment, and the activities brought by points are also more. So I use it more frequently. In 2020, at the beginning of the year, due to the epidemic, the income dropped sharply, and it was necessary to pay back the car loan and mortgage. In addition, their own consumption is relatively high, and the use of credit cards is increasing. So far, there are five credit cards, and about 50 thousand credit cards have been used. Moreover, there are other banks in the market that keep calling or texting, inviting new credit cards, and there are installment credit lines. Unconsciously, the debt has increased a lot, and I feel more and more stressed. Now I am trying to get rid of debt and make my life easier.

According to friends who work in Everbright or Ping An Credit Card Center, the bank's job requirements are how many customers to visit every day, how many cards to open every week, and hard indicators. If they can't meet the requirements, they will either get a basic salary or even be dismissed. So start from friends and relatives around you and continue to complete the card opening task. Every time a credit card is swiped, the issuing bank has a certain percentage of income. In addition, if the credit card has a minimum repayment amount, the monthly interest will be as high as 1.5%, and the credit card limit is relatively low, which is less risky for banks. Therefore, the credit card business is a good profit point for banks, so they are crazy about promoting credit cards. People who need credit cards more are young friends who have just graduated or worked for several years. They also have a certain degree or a good credit card use record. This can determine the repayment willingness and credit awareness of the cardholder. Young people have consumption consciousness and high consumption, but their income is unstable and there is no deposit, so the frequency of credit card use is high. Under the influence of the attractiveness of merchants' consumption and the same payment method, young people are more and more daring to spend ahead of time, and financial institutions are willing to support the development of consumer finance. As a result, the post-80s, post-90s, and post-00s, the per capita debt keeps rising, and it is caught in the card debt crisis.

Under this concept of consumption, the life of young people will become more and more difficult. Similar to the consumption concept in Europe and America, once we encounter natural and man-made disasters with similar epidemics, it will cause serious social problems. The non-performing rate of banks is getting higher and higher, and there are more and more people who are untrustworthy in society. The government should introduce policies to let the concepts of thrift and hard work penetrate into the hearts of the younger generation and establish a correct concept of consumption.

Let's talk about why most young people are caught in the card debt crisis:

1, social overload, work pressure and emotional emptiness are all killing our limited energy. In repeated wear and tear, we adapt to the rhythm of life, but become dissatisfied with ourselves. Both physically and mentally, there are some strange diseases, such as staying up late and overeating. Many people laugh at themselves as "fat houses", which actually reveals a sense of helplessness.

2. The whole social environment is also responsible. Without exception, they are boosting the consumption boom and stimulating consumption. Constantly being promoted by advertisements and apps to plant grass and complete consumption behavior will gradually make you drift with the tide, form thinking inertia, and further reduce your self-criticism and introspection ability. They unscrupulously associate consumption with identity, class, taste and IQ, and vigorously promote "consumerism", which makes it easier for young people to gradually lose themselves. For example, double 1 1 and double 12 are all preheated one month in advance, which makes our original balance worse. It creates an illusion that buy buy will only be happy if it is bought. Young people are still wandering at the door of adult society, but our material desires are as crazy as weeds, but we have no matching ability to make money and poor self-control ability. Debt has its own reasons, and the whole social environment also has unshirkable responsibilities.

According to the survey data of Boston Consulting Group, from 20 16 to 202 1 year, the consumption of young people in China increased at the rate of 1 1% year by year, and the consumption of young people under 35 accounted for 65% of the total consumption growth. China's millennials have become the dominant force in the consumer market.

At the same time, the Report on the Liabilities of Youth in China pointed out that nearly 60% of the post-90s generation have considerable liabilities, and consumption upgrading has become a common phenomenon, among which credit consumption has become the main way of consumption upgrading, accounting for 86.6%.

Let's talk about why banks sell credit cards:

1. Merchant commission income

If the account is settled by credit card, the merchant will have to pay a certain commission, and this rebate income will be distributed to the acquiring institution, the issuing bank and the card organization according to a certain proportion. The handling fee rate of credit card is obviously higher than that of savings card, so if the cardholder uses a bank's credit card, then the issuing bank will get the rebate income of the cardholder's trading merchants.

2. Interest income

With the continuous development of credit card market, interest income has become one of the most important sources of income for card-issuing banks.

Interest income refers to the income from charging interest on all or part of the bill when the repayment date is not full (that is, 18% annualized, with monthly compound interest).

Compared with ordinary loans, the annualized interest rate of credit cards is much higher. With the increasing number of cards, more and more people are overdrawn, and the bank's income from interest is also increasing.

3. Expense income

Fee income is mainly divided into the following categories: installment fee, withdrawal fee, cash advance fee, etc. Compared with the interest mentioned above, the handling fee rate is slightly lower. Taking the installment fee as an example, banks usually give a fixed-term rate. For example, the number of periods of China Merchants Bank ranges from 2, 3, 6 to 36, and the interest of each period is different. In general, the longer the installment time, the lower the interest rate.

In order to encourage cardholders to use installment and cash withdrawal services more, banks also provide many preferential activities, so installment and cash withdrawal are used by more cardholders.

4. Annual fee income

Under the pressure of competition in recent years, many banks have introduced many credit cards that can be exempted from annual fees, but most high-end credit cards (platinum cards, diamond cards, unlimited cards, etc.). ) There is still an annual fee. High-end credit card holders can enjoy various services provided by the bank, such as airport VIP lounge, medical service, exclusive customer service, exercise and fitness, etc. And they have to pay a high annual fee for these services. The annual fee for high-end credit cards is generally 2000, which is usually a rigid fee.

5. Others

In addition to the above-mentioned major income constitutes an accident, banks can also make a small profit in other aspects.

For example, some credit cards with special card faces charge business card printing fees and collect sales revenue from self-built e-commerce platforms. Many card issuers have the awareness of guiding cardholders to spend on self-built e-commerce platforms. For example, the handheld life of China Merchants Bank often promotes the activities of free card purchase in online shopping malls, and more and more consumers begin to use the e-commerce platform built by card issuers.

Since the credit card market is so profitable, there is no reason why major banks should not sell their credit cards crazily.

In the face of capitalists, all problems are not as important as interests, not to mention the epidemic that began last year, when major banks frantically promoted credit cards while withdrawing cash. Now the young people who are in debt are a little careless, and the abyss is ahead.

Whether you apply for a loan or apply for a card, you always borrow money from the bank, and the money always has to be paid back. Everyone should use his estimated near-term or long-term income and repayment ability, what to do with it, and how much return he can get, and then determine the amount of money borrowed and the length of the use period.

In particular, the goal of credit card overdraft is mainly short-term emergency use, such as calculating how much principal and interest you can repay after one year's income and expenditure to determine the loan amount, and how much you can repay in installments every month and quarter. Debt, like a person carrying a burden, should know that he can carry multiple burdens for a long time, 200 Jin. It would be nice if he only brought 150 kg or 180 kg. He will never know how capable he is if he does not carry it. If you are too heavy, you can't stand it. It is best if the weight suits you.

There are many reasons for the crisis of young people's card debt, so I won't make a specific analysis here. I still focus on the analysis: the specific reasons why banks promote credit card processing!

Banks have been promoting credit cards because it is related to performance. The bank successfully promoted credit cards to customers, and the customers handled them, and their performance improved.

Moreover, handling credit cards helps to increase user stickiness. Because credit cards often provide many activities, such as exchanging points for gifts, customers participating in activities, and cooperative businesses making profits, banks can also make some profits. If customers recommend these activities to friends around them, it will also increase consumer groups invisibly.

In addition, many people will contact the bank's debit card for automatic repayment when repaying their credit cards. In this way, customers will continue to deposit money into debit cards, and savings deposits are also one of the important sources of profits for banks.

Also, banks sell credit cards to consumers, and the profits are relatively large. After all, many credit cards will charge an annual fee, and many credit card businesses will also charge a certain fee, such as cash withdrawal and installment. If the credit card is not fully repaid within the prescribed time limit, the bank will still charge interest.

I've been thinking, why are there so many cards when the business modules are all the same and overdrawn?

Put all kinds of snacks in front of a child and tell him, "Eat less snacks and drink more boiled water ..."

Isn't this bullshit?

This is not the godfather's fault!

1. Young people have no bottom line consumption and have no fear of the results. 2. Overmanagement, some choose to do business and feel that business is easy to do. In fact, if you don't do business well at work, you will definitely not be able to do it. If you persevere, you will definitely end up in debt.

Banks recommend credit cards crazily

For this, the reason is that the return of mortgage funds is slow, and it takes 20-30 years for 1 10,000 mortgage to complete the return of funds. Moreover, 1 10,000 credit cards can be distributed to hundreds of people, and repayment once a month can basically be completed. Once there is overdue, there will be extra income. In this way, the bank's profits will be higher and the bank's money will not be blown away by the wind. If it is beneficial to the income, it will naturally increase the promotion.

Secondly, it increases the stickiness of users. In fact, credit cards are dispensable for many people, and many people buy them with the wind. But for banks, consumers apply for credit cards, which also increases the probability of use. After all, there are many credit card activities, and points are often exchanged for gifts. These activities will also lead consumers to spontaneously recommend to friends around them, which will inevitably increase consumer groups.

Moreover, for the convenience of repayment, many people often link the bank's debit card for automatic repayment. The debit card money belongs to the consumer's savings deposit. In this way, consumers' money will basically be stored in debit cards and become active users of banks. For banks, deposits are also one of the important sources of profits for banks, and many financial activities of banks are based on deposits. Therefore, whether you use a credit card or a debit card, it is the source of profits for banks.

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