Life!
In a word, in order to live, when your salary is not enough for expenses, there is still a lot that must be consumed. what to do? Asking friends to borrow money is a debt of gratitude that is difficult to repay. Nowadays, people’s lives are under great pressure, and borrowing money is not so easy.
So when someone recommends a credit card to you, would you choose not to use it? You just need it, and others will recommend it to you!
Nowadays, credit cards and online loans have become quite popular, and have penetrated into thousands of households. Among the urban population in developed areas of our country, most young people are credit card users. Online loans... This is What a huge audience. We also often see reports on short video platforms or in the news about extreme events such as collapse, crime, suicide, etc. due to excessive loans. It can be seen how serious social impact will be caused if credit cards or online loans are used improperly. !
Therefore, what I will share with you today is the common minefields and avoidance methods in the process of using credit cards and online loans. Everyone should take note of them, take warnings, and remember to prevent the continued deterioration of debt. If prevention is not done in time, we will definitely encounter the same or even more serious experiences like those in the news reports in the near future.
Generally, everyone starts using credit products with a credit card. On the one hand, this is because credit cards are heavily promoted. Hundreds of thousands of credit card specialists are running through the steel jungles of various cities every day. , carrying out crazy promotion work; on the other hand, credit cards are issued by banks, have more general social recognition, and are easier to be trusted. When you get your first credit card, the method of using it is often very rudimentary, that is, simply swiping the card to make purchases and repaying it when due. However, due to limited income and occasional impulse purchases, you will be in the embarrassing situation of not being able to use your credit card. More people choose the self-reliant repayment method.
Newbies who have just started using credit cards will choose to borrow money to repay or choose to repay in installments. Some people are embarrassed to borrow money, so they choose to repay in installments. In this way, we will bring benefits to the bank. To earn an income, the installment fee is not high, ranging from 4.8 to 7.6.
At this time, we must deeply realize that the benefits brought to the bank are naturally our increased card use costs, that is, if we pay more, our liabilities will also increase accordingly. Some people will say, how much money does this cost and how much debt can it increase? With 10,000 yuan, you will only contribute about 700 yuan in interest to the bank a year. It doesn't matter! Yes, it is indeed not much, and it can be considered very cheap. However, our debt was precisely because we did not pay attention to it and blindly used the card, which later led to our loss of repayment ability! Everyone followed me and walked slowly backward.
After the credit card installment, the repayment pressure is instantly reduced. For example, Xiao Ming’s credit card has a limit of 10,000. In the past, he used the card to buy some daily necessities or eat, and he only used several hundred, one thousand in a month. With a monthly income of 5,000 yuan, he has no pressure to repay the loan. Suddenly, last month, Xiao Ming learned that a mobile phone he liked was going to be on the market. He was so excited that he swiped his credit card to buy one for 4999. After the bill came out, Xiao Ming began to worry. If he paid back the credit card now, what would he have in his hand? I have no money, how can I pay the rent, water and electricity bills, so the resourceful Xiao Ming chooses to pay in installments, and he will repay about 450 yuan a month, and 12 installments. After this calculation, Xiao Ming still has 4,550 yuan of disposable income in addition to paying the installment fee every month. It doesn't seem to have any impact. He also uses the latest model of his beloved mobile phone. Moreover, Xiao Ming also pays credit card money including the remaining balance. The credit can still be used normally!
In this way, Xiao Ming entered a new stage of his card-using career. Xiao Ming successively bought laptops, clothes and shoes, etc.
At this time, someone asked again, how could he buy so many things with only 10,000 yuan in one payment? This brings us to the key point. It’s like this. Xiao Ming first bought a mobile phone and paid it back every month. After a month, Xiao Ming fell in love with a laptop and looked at the credit card limit. At that time, the available limit had reached nearly 5,500 yuan, so I decisively placed an order and purchased this computer in installments. In this way, Xiao Ming's monthly installment payment amount will reach about 1,000 yuan. Two months later, the available limit of this credit card reached more than 2,000 yuan. Xiao Ming once again purchased a set of clothes and shoes in installments, spending more than 1,200 yuan, and the repayment was also in installments. Two months later, Xiao Ming used his credit card to buy an electric car for 1,900 yuan. Based on the above situation, let’s calculate the account. Xiao Ming used a credit card with a limit of 10,000 yuan to purchase something worth 13,600 yuan. The installment repayment amount reached nearly 1,300 yuan, and the installment fee paid reached 952 yuan/year. This is the phenomenon of credit card purchasing power exceeding the limit.
Now Xiao Ming needs to repay the installment amount of 1,300 yuan every month. His monthly daily expenses are about 1,500 yuan, the rent is 1,000 yuan per month, and he needs about 800 yuan for leisure and entertainment. The total expenses have reached 4,600 yuan, basically. took up all his income. At this time, Xiao Ming began to think of a way. He applied for a few more credit cards, learned from his "predecessors" and learned how to reverse the cards. He bought a hand-swiped POS machine and began to reverse the card payments. In addition to the installments he had already processed, There is no installment business, all is swiped out and then consumed. The card swiping fee is paid every 50 days or so, which ranges from .38 to .6. During this period, except for credit card fees, Xiao Ming contributed no income to the bank. However, due to cashing out, Xiao Ming's liabilities began to increase linearly until the limits of several credit cards in his hand were fully used up. After Xiao Ming started to pay his salary every month, he then returned the card, swiped it out, and returned the card again, and so on until all the cards were paid off. Such repayment directly led to an increase in card swiping fees, and the number of swiping cards was extremely high. It brought great anxiety to Xiao Ming.
At this time, Xiao Ming's total credit card debt amount reached more than 70,000 yuan, and he had to pay three to four hundred yuan in credit card processing fees every month. Funds became increasingly stretched and he could no longer maintain his original consumption. Habit. Xiao Ming once again found some "predecessors" to learn from their experience and learned how to use online loans. Initially, he used Alipay and WeChat Weilidai, because not everyone can use them. Xiao Ming was very excited at first, as if he had picked up money. . The two types of loans together provided a limit of nearly 50,000 yuan. Not only did Xiao Ming's credit card repayment pressure be relieved, but he also had money available again.
Xiao Ming borrowed money from Jiebei and Weilidai, and in addition to using credit cards every month, he also maintained a certain level of consumption. Although he learned a lesson, he did not have many impulses anymore. Consumption, but in the long run, the income is less than the expenditure. If you use loans to support loans, the debt will only increase. What's more, both borrowing and micro-loan have interest, which is RMB 50,000 per day. Don’t underestimate this seemingly cheap daily interest of RMB 50,000. When converted into annualized interest, it is RMB 18.000, which means you have to repay RMB 1,800 in interest per year. This is much higher than the credit card installment fee. Xiao Ming's 50,000 yuan limit requires repayment of 9,000 yuan in interest per month, which is 750 yuan per month. This is only interest and does not include a penny of principal.
As of now, Xiao Ming’s total debt is around RMB 120,000. A loan of RMB 120,000 will take up a lot of energy and time, especially when these loans are scattered. Based on this point, Xiao Ming chose to apply for installments with all credit cards, and repay the money monthly. Anyway, if you pay it in, you can withdraw it again, so you don’t have to spend a lot of time to reverse the card. Of the more than 70,000 credit cards, almost 60,000 yuan can be installed in installments, which will generate about 4,200 yuan in handling fees every year. Adding in the 9,000 yuan from Jiebei and Weilidai, the extra expenditure is 13,200 yuan per year.
As long as the expenditure is greater than the income, the loan limit will always be used up one day. When it is used up, people like Xiao Ming who cannot control themselves will choose to apply for more credit lines. The market is similar to Alipay borrowing. There are also many online loans, such as Youqianhua, Xiaomi Loan, China Merchants Union Finance, Xinwang Bank, etc. There are also some equal principal and interest online loans such as 360 IOU, Paipaidai, Kakadai, Home Credit, Jiufu, Renren Loan, etc. (These types of loans have very high interest rates, so be sure not to touch them casually). Xiao Ming successively applied for online loans with an amount of about 80,000, but after that, the amount was basically not approved. The average annual interest rate for this type of online loan is about 20 yuan, and the additional cost is about 16,000 yuan per year. The loan interest that Xiao Ming needs to pay every year is about 30,000 yuan. Of course, money is spent bit by bit, just like boiling a frog in warm water. High interest rates will suddenly appear in front of Xiao Ming one day, and then he will realize the seriousness of the matter. For Xiao Ming, whose annual income is only about 60,000 yuan, In other words, he was powerless to change the status quo. Because of the financial shortage, Xiao Ming's credit card is basically unable to apply for installment again, and he can only choose the minimum repayment. The minimum repayment is 10% of the bill amount, which seems to reduce the repayment pressure, but what most people don't know is that paying the minimum will incur additional interest.
The minimum repayment is calculated based on the actual bill amount. Xiao Ming has used a credit card with a limit of 70,000 yuan, so the bill is basically 70,000 yuan. After repaying the minimum 7,000 yuan, there is still 63,000 yuan left to pay. Interest will accrue on these unpaid amounts, with an interest rate of RMB 50,000 per day. Assume that Xiao Ming's bill date is the 5th and the due payment date is the 23rd of each month. On February 23, Xiao Ming repaid 70,000 yuan in full, and then all the money was withdrawn. Then the bill issued on March 5 showed that 70,000 yuan needed to be repaid. On March 23, Xiao Ming repaid 7,000 yuan, leaving 63,000 yuan. Interest will be charged when the bill is issued on April 5. The specific calculation is: 70000 0.05 28 days (February 23 to March 23) (70000-7000) yuan 0.05 13 days (March 23 to April 5 day) = 980 409.5 = 1389.5 yuan, you read that right, this is the way to calculate the interest on the minimum repayment, and it is compounded monthly! Isn’t it a lot? According to this calculation, if the payment is the lowest throughout the year, at least 18,000 yuan in additional interest will have to be repaid in a year. In this case, Xiao Ming’s annual cost will reach nearly 50,000 yuan! Therefore, Xiao Ming will only sink deeper and deeper, and it is extremely difficult to change the status quo.
The entire process of debt deterioration may last 2-3 years, or 3-5 years, but if there are continuous mishaps in the middle, this time will be shortened accordingly.
In the end, there is a high probability that the final blow to Xiao Ming will be a credit card, because if he uses a hand-swiped POS machine for a long time and uses up his credit card limit for a long time, the bank's score for Xiao Ming will become lower and lower. Moreover, the bank will periodically check Xiao Ming’s credit report. Applying for too many online loans will make Xiao Ming’s credit debt ratio too high. When the bank discovers such a situation, it will carry out risk management and control, stop payment or freeze the credit card, and it will be accompanied by Derate or block the card. When encountering this situation, you will often face the embarrassing situation of repaying a large amount of debt and being unable to use it, which may even directly lead to batch overdue and become a black account!
To summarize, 1. reverse the card; 2. cash out; 3. use loans to support loans; 4. minimum repayment. These minefields will directly lead to a rapid increase in debt until personal credit collapses.
Based on the above situation, credit card online loans will go further and further. Spend wisely and avoid minefields!
Just borrow it, don’t use it if you can’t use it. Credit card, I think it’s okay, no problem. The bank also encourages you to use it. If you use it more, you can increase the limit. As long as you plan it well, there’s nothing wrong with it.