IPFS News Link • China
China's Generation-Z Is Developing An Ugly Addiction To Easily-Accessible Debt
• https://www.zerohedge.com, Tyler DurdenHis spending habits are made possible buy Huabei, a credit card that's part of Alibaba's ecosystem. He routinely spent more than his sole source of income, which was his parents 8,000 yuan (~$1,200) monthly allowance. When fell under a pile of debt, he tried to borrow his way out of it and pay in installments. It didn't work, and his parents had to bail him out. Hubei charged him 0.05% per day, which is about 18.25% annualized.
His story is typical for China's Generation Z. Born between the mid 90's and early 2000's, this generation has little income and "virtually no credit history". But that doesn't stop them from having access to banks, fintech startups and peer to peer lenders (in addition to other unregulated channels).