You're calculating the interest on loans-to-cover-loans incorrectly.



Borrow 50k, 6-month installment plan (18% annualized rate common on platforms), monthly payment 9800+!

In the second month, use JD.com Baitiao to borrow 9800 to pay it off, monthly payment instantly breaks 10k.

In the third month, open Zhaolian Finance again, borrow 1.1k to cover the gap......

In 3 months, debt skyrockets from 50k to 6.8k+!

Half a year without hitting the brakes, your car and house can both be "installmented" away by half.

This is currently the reality—banks only lend to people who don't need money, they won't lend to those who really need it. So where does the lending go? Previously there was real estate and urban infrastructure investment, what about now? Just idle circulation.
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