Is the "early loan repayment" of young people a trend? The actual situation is t
The mere mention of the word "loan" can make many people shudder. Looking at the various loans that need to be repaid next month, such as auto loans and mortgages, one can't help but feel an inexplicable pressure, after all, the interest on loans of hundreds of thousands can be quite substantial each month.
This is understandable, especially for those with large mortgages, where the most worrying issue each month is still the repayment of the mortgage.
Recently, the phrase "young people repaying loans early" has been trending on social media, and an increasing number of young people are starting to choose to repay their loans ahead of schedule.
If we pay close attention, we will notice that more and more young people are appearing in banks, not to deposit money, but to queue up to repay their mortgages early.
A few years ago, due to the housing boom, the popularity of loans, and the urgent need for marriage, most young people chose bank loans to buy their own houses and cars, and then began a decades-long journey of loan repayment.
Now, due to the sluggish real estate market and the reluctance of people to continue being "unpaid labor" for banks, more and more people are starting to choose to repay their loans early, which has become a new social hot topic and a trend to follow.
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The behavior of young people repaying loans early is understandable, but experts still remind all loan payers: "Everything should start from one's own specific actual income level, do not blindly follow the trend of repaying loans, and act within one's means."However, some young people directly complain: "Now it's not a question of whether we have the strength to repay the loan in advance, but whether we have the opportunity to do so."
It turns out that many young people are told they "failed to make an appointment" or "lack the qualifications" when they prepare to repay their loans early.
So, what causes young people to want to repay their loans early? And why is it difficult for young people to repay their loans to banks? Let's continue to look down.
I. Cars, Houses, and Money, the Pressure on Contemporary Young People is Great
Nowadays, it's a common joke about young people: "Young people strive for three things: cars, houses, and money." A car is the small automobile we use for daily transportation, regardless of the brand or price, the premise is that you must have one.
Money is also easy to understand, which refers to the earning power of young people or how much savings they have. If you don't have a substantial amount of savings now, and your expected monthly salary income is not high, then in the eyes of others, you might be "a bit lacking."
Houses are the main focus of our discussion today, and many contemporary young people, and even some middle-aged and elderly people, are still burdened with mortgages. Houses are also the most troublesome thing among cars and money.
The current reality demands that people (especially men) must have their own house. Whether it's for their own living, for their parents' retirement, or for future marriage, a house is indispensable.Moreover, when it comes to arranged meetings and discussing relationships nowadays, most people will straightforwardly ask the male party: "Do you have a car? Do you own a house? What is your monthly salary?" It is believed that many men are sweating profusely after being asked these three questions in a row.
In the past, it was "grades, grades, the lifeline of students, exams, exams, the magic weapon of teachers." Now it is "cars and houses, the lifeline of men, salary slips, the magic weapon of arranged meetings." Cars, houses, and money have put too much pressure on contemporary young people, but they are also realities they have to face.
Due to the rigid demand for cars and houses, the corresponding car loans and mortgages have emerged. It's okay if you can't afford a house now; as long as you have the down payment and can provide proof of a stable job or a fixed monthly income to the bank, you can get a loan.
Banks and real estate developers, under the slogan "Live in your dream house ahead of time," have led many young people to become part of the loan community.
It's not about whether this method is right or wrong, after all, there is a market and corresponding policies for needs.
Once young people choose the path of a mortgage, they will have to work hard for the next twenty years.
The price of living in a million-dollar house ahead of time is to regularly repay the mortgage every month, as well as to pay additional interest.
Although more and more young people are starting to choose to repay their loans early, they only realize when they actually try to repay their mortgages early that: it's not as simple as just wanting to repay early.II. The Path to Early Mortgage Repayment is Challenging
(The characters and plot are fictional) An increasing number of young people are realizing that repaying their mortgages early might be better for their future lives, and more people are joining the ranks of those who repay their mortgages early. Moreover, the returns on real estate investment are not very high at present, and the sluggish real estate industry is also prompting them to reduce interest rates by repaying early.
However, the actual situation is not as simple as imagined. Although the number of young people repaying their mortgages early is growing, banks do not allow you to repay whenever you want.
Mr. Chang, a self-employed businessman living in Xuzhou, Jiangsu, is frequently refreshing his mobile phone. He is not watching videos or checking the latest updates on social media, but rather constantly refreshing a bank's APP to grab an early repayment quota.
Mr. Chang started refreshing the interface from midnight, and there was no result until 0:30. Sometimes, he was simply kicked out of the system. Later, he saw in a large group that the relevant processing quota had already been snapped up at 0:10.
Similarly, Lawyer Huang, a post-90s resident of Wuhan, is also worried about making early repayments. Due to the success of his career and having money in hand, he wants to reduce the interest on his loans and is preparing to repay his mortgage early. Lawyer Huang has also secured a qualification for early repayment.
With only three days left to make the early repayment, Lawyer Huang suddenly received a text message from the bank stating that his early appointment was invalid and he could not repay early.
Looking at the rules and regulations of the appointment, Lawyer Huang did not violate any provisions, so he sent a lawyer's letter to the bank.The two aforementioned incidents are examples from a special interview by CCTV on the issue of "young people repaying loans in advance."
From Mr. Chang and Lawyer Huang, we can also observe that it is not as simple as it seems for young people to repay their loans in advance nowadays.
1. Difficulty in online appointment scheduling
If you wish to repay your mortgage in advance, under normal circumstances, banks would reserve channels for people with such needs, which is also one of the bank's services. Making advance repayments used to be a very common service, and there was no difficulty in processing it.
However, with the increasing popularity of advance repayments among young people, the number of individuals seeking to repay early has grown, prompting banks to take measures. Offline appointment scheduling is not enough; you must first secure an online appointment to qualify for early repayment.
But when it comes to online appointment scheduling, one might inevitably encounter issues such as: servers being overwhelmed, inability to access the system, too many people trying to book resulting in fully booked appointments. Sometimes, even an appointment slot that has been secured can vanish due to network fluctuations, and so on.
If you consult with bank customer service, they too express their helplessness, as the number of people is indeed overwhelming. The bank's system does not possess the powerful computational capability like the railway 12306 system, which can coordinate ticket purchases for hundreds of millions of people.
Therefore, sometimes young people fail to secure an online appointment for advance loan repayment, and as a result, they are unable to proceed with the repayment.2. Difficulty in Offline Processing
If you are fortunate enough to secure an online appointment, congratulations, you have only completed the first step. This is because large loans such as mortgages generally cannot be operated on mobile phones, and it is even less likely to prepay the loan on a mobile phone in advance.
If you have managed to secure an appointment for early loan repayment, the next step is to start preparing the necessary written materials and submit them to the bank at the scheduled time.
Once your materials are approved, you can proceed with the early repayment; if not, unfortunately, you will have to try again next time.
Perhaps some bank staff may offer you the opportunity to supplement your materials, but it can be said that such instances are few and far between. Not to mention how many people go to the bank to handle business every day, and whether you can even get in line is another matter.
Having personally experienced it, I once waited for 4 hours to be called for service after the bank opened on a Friday morning.
So even if you have an online appointment for early loan repayment, you still have to pass the hurdle of "whether the materials are complete and whether you can get in line."
3. Complicated Bank Operating Systems
The operating systems of banks can be quite cumbersome, which may lead to a frustrating experience for customers trying to navigate through the processes.Many people, upon seeing the first two points, can't help but wonder: "Isn't this just the bank not wanting people to repay their loans early?" Indeed, banks have a negative attitude towards a large number of early repayments, and no bank particularly supports everyone rushing to repay their loans ahead of schedule.
This is also understandable, as the direct impact of customers repaying their loans early is a decrease in the bank's long-term and overall returns. Originally, a loan taken out by an individual over 30 years could generate an economic benefit of 2 million, but if you repay it within 10 years, the benefit might only be 800,000.
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Moreover, the real estate credit system, as one of the most stable and complete credit systems for banks, can be said to be one of the important pillars for a bank's development. If there is a sudden large number of early repayments, it will affect the bank's overall business and future development plans.
Furthermore, it is not easy to operate in the bank's operating system, such as dealing with a large-scale early repayment. The related businesses and markets that the bank carries out relative to real estate loans will be greatly impacted.
III. View car loans and mortgages rationally, and be cautious with repayments
The trend of early repayment has also changed with the real estate industry, and more and more young people are starting to consider the mortgage, which accounts for a large part of their living expenses.
They find that if they grit their teeth and stomp their feet now to compress the mortgage for the next few decades into a few years, they can save a lot of money and get rid of the days of repaying the mortgage earlier.An increasing number of young people are embracing the idea, and consequently, more individuals are starting to prepay their mortgages early.
Although young people see that prepaying their loans can save a significant amount of money, they should not focus solely on the apparent benefits. Can they afford to prepay? How much can they prepay? This must be determined based on their own financial strength.
When it comes to prepaying loans, it is essential to act within one's means and analyze specific issues on a case-by-case basis. The safest approach is to plan the repayment amount based on one's future disposable income. Blindly following trends is not advisable!
Moreover, as more people begin to choose to prepay their loans, major banks have been raising the associated penalty fees. This means that the penalty fees for prepaying loans are now alarmingly high.
In conclusion, a bank customer manager said in an interview regarding the issue of prepaying loans: "Prepaying a mortgage to save on interest expenses is understandable, but financial consumers should also enhance their risk awareness, handle loan and repayment business in accordance with the law and regulations, be honest and trustworthy, and fulfill the spirit of the contract."
In general, prepaying loans is something that is allowed by law and within the rules, so it can be done.
However, due to varying circumstances and loan amounts, it is crucial to carefully consider whether to prepay the loan and make sure to plan well for oneself.The current craze for houses and cars has gradually cooled down, and more and more young people are starting to rent houses in the cities where they strive. Buying a house is no longer the necessary action it once was in our eyes.
The phrase "Houses are for living in, not for speculating on" is also being understood and implemented by more and more young people.
Shouldn't houses inherently be for living in? It's just that in previous years, houses were tied to too many additional things, increasing their added value.