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Chinese youngsters troubled by debt due to over-consumption

(People's Daily Online)    09:08, January 30, 2019

As consumption becomes a dominant driving force of China’s economic growth, the country’s younger generations are becoming more troubled by over expenditure, suffering severe consequences.

Over-consumption is now a strain on Chinese society, where many youngsters are struggling to pay back the money they borrow from banks, financial organizations, and even small loan agencies.

Statistics from Rong 360, a Chinese provider of customized financing and loan services, showed that 53 percent of college students had used loan services for shopping, as expensive products, including Apple laptops, iPhones, Kindles, and cosmetics are becoming “necessities” on campus.

However, without the ability to pay the money back, many college students have no other choice but to sit back and watch the interest creep up.

Among those who have used loans, the group aged from 26 to 30 made up 26.6 percent. Compared with the older generations who generally value family when it comes to consumption, the young generation tends to take better care of their own interests.

Yuan Shanshan, a 26-year-old member of staff at a creative and cultural company, explained that her biggest wish is to clear her debt and start all over again. There is no way back if you consume more than you can pay for, she added.

As loan thresholds keep lowering, more young consumers are lured into excessive consumption, with many online platforms setting up debt traps.

Statistics showed that in 2013, financing for China’s internet consumption only stood at 6 billion yuan, while the figure grew to 4.4 trillion yuan in 2017, over nine times that of the previous year.

Data from the People’s Bank of China suggested that China’s unpaid credit loans, overdue for more than half a year, had risen to a total of more than 88 billion yuan by the third quarter of 2018, up from 7.68 billion yuan at the end of 2010.

A report on the outlook of pensions in China showed that among those under the age of 35, 56 percent have not saved anything for retirement, and 44 percent only save an average of 1,339 yuan each month. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Hongyu, Bianji)

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