Crazy! 90% Chinese Youths Bear Debt!

Unlike the previous generations, Chinese young people get used to spending with borrowed money. While debt fears and concerns follow, a report shows that the youth may be more rational than you think. 

Crazy! 90% Chinese Youths Bear Debt!

Years of manufacturing efforts are producing more goods available for consumption. Under these conditions, it’s easy to understand why Chinese youth don’t need to worry that the things they want to buy won’t be available. 

On the contrary, what they do worry about is that they don’t have enough money to buy most of the things they want

What’s more, as the increasingly popular and advanced online credit services in a cashless Chinese society, consumers are encouraged to “buy first and pay later”

Crazy! 90% Chinese Youths Bear Debt!

Nielsen released the Report of China’s Young Consumers’ Debt Status on Nov 13, just two days after the Singles Day spending spree. 

Through the online survey, Nielsen investigated 3,036 Chinese young consumers in September and October. The penetration rate of credit products for the youth has reached 86.6%


Even though the rate is high, half of the respondents use the products as a tool of payments

Crazy! 90% Chinese Youths Bear Debt!

Nearly half of the people in debt can pay off over the month. 

The average debt-to-income ratio of China’s young adults is 41.75%, while the monthly real debt repayment-income ratio stands at 12.52%

According to the research, most of the young people are not drown in the credit payments, instead, they have a cautious attitude about it. 

Some young people think this mode of consumption offers financial backup since their monthly salary cannot afford too many things they want to buy after paying for daily expenditures when they just begin their job. 

Crazy! 90% Chinese Youths Bear Debt!

Paying through credit products help them still keep some of their salary for everyday use, even invest the rest in financial products to have a good deposit. 

Of course, it’s true that not all young people are so rational in their consumption. Some people may have to ask their parents or friends to help pay off their debts since they often spend so much. 

Crazy! 90% Chinese Youths Bear Debt!

What do you think about credit payments? Please leave a comment below and share your thought!