There may be fees for taking out a loan or credit card. That's why minimising debt, as far as possible, is essential for your financial wellbeing.
Household debt is rising in China, and hit 60.4% of its GDP at the end of 2018, according to the People's Bank of China (PBOC). The household debt to income ratio hit 99.9 per cent, meaning that total debt is now roughly the same as total household income.
If you are struggling with the high price of debt, you have several options:
Many people are in debt trying to pay for things that they can't afford, like a big house, a car, or even just daily trips to the coffee shop. If this sounds like you, consider ways to reduce how much you spend.
Talk to your lender
You may feel worried by the thought of talking to your lender, but in many cases, they can offer help and a way forward. They may be able to offer you a short payment holiday, freeze the interest on your borrowing for a while, or amend the terms or interest rate you are paying.
Consolidate your debts
If you have multiple debts, it may be cheaper to consolidate these into one loan if it means a lower interest rate. Be aware of fees, you'll need to consider if there are fees and costs associated with repaying or consolidating your loans and if it will result in less debt to repay overall.
Protect the things that matter the most to you.
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