Sep 8, 2021
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Young people get hooked on the credit needle

Young people get hooked on the credit needle

In the first half of 2021, Russian banks issued more than 120 thousand credit cards to people between 18 and 20 years old. It turned out that this is almost three times more than in the same period last year (data from the credit history bureau of the OKB).

Judging by such a sharp increase in the issuance of credit cards to young people, this is clearly not an accident, but, most likely, a conscious policy of financiers.

What drives lenders? First, they have already “spud” the senior and middle age groups of borrowers in Russia, squeezed them dry. Now they need a new group of the population: the growth of the client base in the bank reporting is the first line.

Secondly, it is very easy for young people to promise from three boxes and lure them with money and clever terms, it is easier to process them and attract them to lending. Young people are much more willing to rush to coveted expensive gadgets, for which loans are mainly taken. And I also want to go somewhere with friends, buy a fashionable electric scooter. Yes, a lot of things you want in your youth, and it is difficult to give up the money that you are actively offered today from each iron.

At the same time, experienced bankers understand how difficult it is for young people to assess the level of their expenses and organize them correctly. They know that they have no life experience yet, that they have no responsible attitude towards debt payments. But the benefits, apparently, are more important than losses from non-payments, and most importantly – more significant.

Suppose, according to statistics, almost every tenth young borrower is not able to repay their loan obligations to the bank on time and in full. Let 9% of the portfolio of credit cards from borrowers under 20 years later, one year after issuance, turns out to be in default and is delayed by 90 days or more. But the money of those who still pay is enough to make a profit. And the fact that many young people begin to break down their lives and biographies due to bankruptcies and financial troubles, few people care.

Evgeny Malyakin.


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