Many people thought that it was only hundreds of thousands of huge debts that could be overstretched. The average monthly salary of 3,000 workers is not linked to the internet mortgage. But reality is often more cruel than expected, and just 10,000 sums of arrears are enough to keep ordinary people trapped for half their lives。
Many of the young people around us have always had a good deal of luck, feel less and pay back slowly on a monthly basis. All you can see is that the loan from the platform is simple, that the money can be paid in a few minutes, while ignoring the accumulated interest on the back of the debt and the ubiquitous cost of living. Once the financial chain breaks, the whole human being falls into a dead-end cycle of debt and will never be able to climb out again。
We'll take as an example the internet-based lending products that are widely available on the market. The platform page shows an annual interest rate of 24 per cent, borrowing $10,576 in 12 equal instalments of principal repayments, with a fixed monthly amount of $1,000. For low-level workers with a monthly salary of 3,000, the expenditure was sufficient to cause a year of stress。
After monthly salary deductions, three meals a day and transportation to and from work, all of these hard expenses will have to be recovered. After that, the remaining balance is only over 1,000 per month. This amount was sufficient to repay the loan for the current month and no additional expenditure could be incurred throughout the year。
If you don't get sick, if you don't buy medicine, you're going to have to take over a simple headache. Friends invite guests for dinners, people with relationships, and all these daily social expenses are cut off. It is even more critical that there be no unemployment and that the monthly repayment gap emerges as soon as work breaks off。
Days are never easy for ordinary people, and accidents come too soon. In the event of a small illness, families are temporarily in need of money or large quantities of daily supplies, which, in any event, can disrupt the already tight revenue and expenditure plan. If there is no reserve in hand, there will be a shortfall in repayment funds immediately。
When there is no way out, many people choose to split their bills or make minimum repayments. It appears that the current pressure has been eased temporarily, that in practice interest will continue to pile up, and that a rolling pattern of debt snowballs will increase. In just a few months, more than 10,000 principals would be unaffordable。
If borrowing were doubled upwards, the debt pressure would be doubled directly. When the amount borrowed amounts to $21449, under the same phased rules, the amount is raised directly to $2,000 per month. Two thirds of the $3,000 monthly salary is to be spent on debt servicing, leaving a balance of $1,000 to barely feed and feed and a straight decline in the quality of life。
Under enormous repayment pressure, the vast majority of the population would be on the old path of lending. Dismantling the holes in the new network mortgage to cover the arrears of the old network mortgage. Each new loan would generate fees, services and high interest rates, piles of old and new debts and a rapid increase in arrears. At that stage, the debt would be completely out of control and no hope of paying off the arrears would be forthcoming with any savings。
Many outsiders do not understand why tens of thousands of dollars can push young people into a desperate situation. You see only money in debt, but you don't see that the internet lending is quietly overtaking young people's most precious youth. In their late 20s, the golden age of experience, technological learning and outreach is also a critical period in the creation of a peer gap。
Once loaned on the internet, people's mentalities change dramatically. Every day, all i think about is payback, and every time my phone rings, i'm afraid it's a call. During the day, the spirit of work was restless, lying in bed all night, and all the energy was devoted to tearing down the wall。
Day after day, he was trapped in a debt anxiety, and he didn't even think of promoting himself. While others use their amateur skills and side businesses to keep up their income ceilings, those deeply trapped in internet lending can only be trapped in the death cycle of monthly repayments。
Several years of debt, with salary increases for those of their peers, savings and steady feet. Retrospect yourself, with no deposits or hard technology, with only a butt of debt and an exhausted fight. Net lending will not be a once-in-a-lifetime loss, it will only take a little bit of a man's head off, flatten all his expectations, and finally let him choose to lie flat and rot, and lose the chance to turn over。
A more hidden trap, hidden in the interest rate of the loan. The vast majority of online lending platforms play word games, with pages showing annual interest rates of 17 per cent or 24 per cent, and many young people who do not understand the formula and are so confused that they enter into a loan contract that they find that the actual interest incurred is twice as high as the promotional figure。
Regular bank credit is calculated on the basis of the residual principal. As repayments continue on a monthly basis, the principal will continue to decline and the subsequent interest will become less and less. However, the way in which interest is measured on the internet is completely different, and even if most of the principal has been paid, the platform still calculates interest on the basis of the full amount initially borrowed。
Even if, by the end of the period, there were only a few hundred principals left in the account, it would still have to bear high interest. The page indicates an annual interest rate of 24 per cent, which allows the actual rate to reach 48 per cent and is well above the interest rate for private borrowing to regulate the red line. Here you can sum up a simple judgement technique, where the real interest is essentially twice the interest rate indicated on the page, for all internet loans with an equal principal spread。
In addition to the interest trap, many internet loans bind services, guarantees and membership fees. These plethora of billing items, which do not fall into nominal interest rates, do increase the burden on borrowers. The combined costs of miscellaneous fees would continue to rise sharply. Many young people see only the principal money, neglecting all kinds of surcharges and waiting for late repayments, but arrears have arisen and there is no room for reversal。
The prevailing climate of pre-consumption is also a major incentive for young people to enter the web-based lending pit. Short video platforms continue to advocate for a life of excellence, and many young people are blindly compared to their own income levels in order to maintain their appearance. New mobile phones, branded clothing, and net-red cosmetics, which exceed the demand for economic consumption, can only be supported by internet lending。
After a short period of complacency, there is a long-term burden of repayment. It's nothing to lose in return for years of hard living. Some are also eager to start a side business, are not well-funded on hand, and borrow blindly without a risk assessment, and when a business loses, a financial chain breaks and a debt crisis breaks out。
Here, all the young people who are fighting, organize three practical ways to avoid pits, hold their wallets and stay away from debt。
First, the desire for consumption is strictly regulated and non-essential expenditures are cut off。
Unswervingly eliminating overdrafting future past past consumption and brainwashing by cyber consumerism. In order to acquire valuables, it is possible to purchase them slowly and in full, rather than relying on borrowing. Faces are worthless, and a stable and secure life is far more important than a short period of light. The practice of forced savings is to set aside a monthly contingency fund to deal with sudden-onset situations, without having to borrow money at short notice。
Second, there is a real liquidity problem, giving priority to formal credit products launched by banks。
Prior to applying for borrowing, personal income is carefully accounted for and income and expenditure planning is made up of no more than half the personal disposable income per month. Sufficient maintenance is set aside, not all wages are used to pay off debt, and they do not force themselves to the point of no return. A careful look at the interest rates and service charges in the contract, a clear calculation of the combined borrowing costs and a rejection of the various hidden charges。
Thirdly, if we have been inadvertently caught up in the problem of borrowing, we must not be left alone。
Many young people are afraid of family accusations, and the more they are in arrears, the more they bear all their debt. The best way to deal with it is to communicate frankly with families as soon as possible and to rely on them to help settle their high-interest arrears once and for all. In the case of unreasonable expenses exceeding the legal rate, it is possible to defend its interests in a reasonable manner, to refuse unreasonable fees, to cut off the chain of borrowing in a timely manner and to refrain from any new loans。
The threshold for online lending applications is now getting lower, with only one identity card to complete the loan in a few minutes, and the low threshold is continuing to harvest young people who have never been deeper. Net lending is not only about bank credit, but also about the future choices of young people。
It is difficult to plan a career and raise income when a person is anxious every month for a repayment day and is disturbed by a daily call for information. Debt locks ordinary people up and locks them in the middle of low income and debt servicing。
Network lending itself is a financial instrument, a reasonable short-term turnover that, once used to support wasteful consumption, becomes the shackles of life. Every young person who wants to overtake his or her future ahead of time has to settle for long-term costs without destroying years of life for impulsiveness。
It is important not to feel that debt is so remote, that sometimes a small loan can break a stable life. Maintaining the income and expenditure base, controlling the desire for consumption, and keeping the emergency deposit so that they can hold their days steady and move forward。
Is there anyone around you who's been put on a loan for micronets? How did they all land? The sharing of real experiences in the comment area is welcome。
