Online loan consumption makes the new generation of migrant workers "love and hate intertwined"
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Using online lending platforms to spend daily consumption has become a mode of consumption for many young people, and it is no exception for the new generation of migrant workers.
While online lending solves urgent needs, there are risks at the same time, which makes them feel the ambivalence of love and hate.
Recently, the Institute of Sociology of the Chinese Academy of Social Sciences released the "Investigation Report on the Life and Mindset of the New Generation of Migrant Workers" (hereinafter referred to as the report). The report shows that most of the new generation of migrant workers can basically support themselves, but they have less deposits and weak financial management concepts. The proportion of online borrowing is high.
The reporter interviewed a number of new-generation migrant workers working in cities and found that online lending can help them to overcome their dilemmas to a certain extent, but uncontrolled online lending may also make them lost in the debt trap of high consumption.
Internet lending becomes a backup wallet
When taking the subway home every day, Xiao An can often see lightbox advertisements on online loan platforms in subway passages. As a former online loan consumer, her emotions for the overwhelming fancy advertisements of online loan products are more complicated.
The biggest expense of Xiaoan's online loan is to pay tuition.
Xiao An, whose family was poor in his early years, ended his studies after finishing junior high school in rural Anhui, and went to Shanghai to work with his fellow villagers in 2014.
She has worked as a garment worker in a clothing factory, a waiter in a restaurant, a salesperson in a supermarket, and so on. She has a deep understanding of "how important is the stepping stone of education" and eagerly wants to improve her education.
Xiao An, who is uncomfortable with the status quo, wants to break through the ceiling above her head, but she doesn't know where to start.
"Some friends around me thought I was whimsical, and some were very supportive." By chance, Xiaoan saw a pop-up advertisement to improve her academic qualifications while surfing the Internet: through studying, she can get a college degree after graduation, which made her move. Mind.
Before the fall semester of 2018, Xiaoan used the installment payment platform to pay off the registration fee of 16,000 yuan in a lump sum, received the learning materials issued by the institution, and felt the pressure of monthly repayment.
But Xiaoan believes, "After graduating from a college, you can still apply for an adult undergraduate degree. This makes me feel that these registration fees are worthwhile and can be earned back in the future."
Like Xiaoan, online lending also eased Gutian's urgent need to borrow money to buy a house in his hometown.
A year ago, Gutian and his wife he met while working at a Shenzhen electronics factory returned to their hometown in Hunan to get married.
In June of this year, Gutian's wife became pregnant. The young couple decided to buy a big house in the downtown area of their hometown and take their parents to live there.
Although buying a house with a loan is the choice of many young people, how to repay the monthly mortgage has also become a core issue that must be faced.
Gutian's wife has resigned and is waiting to give birth at home, and the arrival of the child makes him reconsider his consumption plan.
He calculated an account for the reporter: "Now I have a monthly income of more than 4,000 yuan, a mortgage of 3,000 yuan, and living expenses. After the child is born, he will also spend a lot of money. So, I thought of using online loans to ease it up for a while."
Spending money becomes difficult to control
During working in the electronics factory, Gutian's monthly salary fluctuates between 4,000 yuan and 5,000 yuan, and he can only get more pay if he works more overtime.
He confessed that the lack of awareness of saving money in the past led to great regrets now, and it is difficult to give his family a better life security.
"When you are single, apart from sending some money to your parents, the rest is basically used to play games, buy clothes and shoes, and occasionally have favors and gifts, so you can't save money."
After the wife is waiting for delivery, the family's source of income is only Gutian.
Taking into account the two large expenses of the paid gift and the purchase of a house, as well as the monthly mortgage and various expenses after the birth of the child, Mr. Gu can only choose to pay online in advance.
"Now parents can help with some basic households, and online loans are only a short-term plan. The most important thing is to find a higher-paying job."
Not saving any excess money is also the main reason why Xiaoan chooses online loans.
Although he has been working in Shanghai for 4 years, Xiao An still has a hard time paying 16,000 yuan in tuition.
"Before there is no debt, half of the salary will be sent every month to parents for building a house, treating illness, and for the brother's tuition and living expenses. The remaining salary income is used to pay for rent, cosmetics, and invite friends in Shanghai. "Food and other expenses", Xiaoan said that he has long become a "moonlight clan."
Although Wu Qian did not have the large expenses of investing in studies and real estate, for her, "the spending of girls on food, clothing and cosmetics is also an investment."
After graduation, Wu Qian stayed in Beijing to work. The salary she got gave her more satisfaction with economic control, and it became more and more difficult to control her spending.
"Consumerism is prevailing now, and payment can be achieved in one step by opening any software. After work, I am hooked on makeup again. Most of the online loans are spent on cosmetics, travel, and high-end electronic products." Within two months, Wu Qian has found out the loan limits, repayment dates and rules of various online lending platforms, and has opened more than 10 related lending accounts, which are used for daily shopping, dining and other consumption.
Prevent online lending from becoming a bottomless pit
Since July 2019, I have repaid the money every month and then borrowed it and repaid it after borrowing it. When Wu Qian reacted, the accumulated amount to be repaid had reached 80,000 yuan, of which more than 10,000 yuan was interest.
"This kind of debt brings not only survival pressure, but also emotional anxiety. I feel very guilty when I think of my parents saving money in my hometown, especially in the months before the end of the month."
"My parents helped me advance some of the arrears, and I will pay the rest slowly, and it is expected to be emptied by the end of the year." Wu Qian recalled that the so-called investment in extraneous objects did not actually help, and it also increased consumer desire.
Now that she has changed her job and increased her salary, she plans to start from scratch.
Xiao Ann’s education promotion plan was not as good as she had expected. Two years after paying tuition to the institution, she gradually realized that the purchased degree did not provide real knowledge, but instead made her afraid to leave the job because of debt.
The rent, daily consumption, and expenses for sending home are in front of him, and Xiao An has to use loans to support her livelihood.
"I have used many online lending platforms. The principal plus interest of each period will eventually become a large number. In the end, the wages will be emptied and they can't be paid for. All platforms can only repay the loans with loans." Xiaoan said.
During the epidemic, Xiaoan saw a friend using computer technology to receive a lot of business at home, able to work remotely and earn considerable rewards, so he spent 6,000 yuan to sign up for offline graphic design and post-editing courses.
"I know this will increase debt in the short term, but I have re-planned my monthly consumption, saving money and spending the money borrowed on the blade, I believe there will be a return." Xiaoan said.
Pan Helin, executive dean of the Institute of Digital Economy, Zhongnan University of Finance and Economics, believes that rational consumption is the right consumption. The new generation of migrant workers lack financial management concepts and relevant knowledge training, and their ability to withstand risks is weak. Online loan consumption is their livelihood. Increased uncertainty and instability.
Therefore, the new generation of migrant workers should establish a correct consumption concept, have a detailed repayment and deposit plan before using loans, and seek a long-term, stable job.
Pan Helin also suggested that relevant departments should not only improve public services for the new generation of migrant workers, help them cultivate a good sense of money, and guide their consumption expectations, but also need to use consumer loans that trigger high leverage and induce crime. Economic (credit policy) and legal means to regulate.
(At the request of the interviewee, the names in the text are all aliases)
Liu Xiaoyan