Debt burden becomes heavier while ability to pay shrinks

Who gains from it?

According to the latest research, conducted by “Unicom 24”, sum of average loan borrowed from microfanance organizations have risen at 58% in comparison with previous year.

Debt slavery

Average sum of loan varies from 25 to 27 thousand roubles. For the last 10 months Russians borrowed almost 300 bln roubles in loans from microfinance organisations(MCO), which is 20% higher than in previous year.

Pos-loans market also on the rise. From January to September 2019 number of pos-borrowing increased at 2.6% in monetary terms and in 1.3% in average stats from previous year.

“It is clear that such rise in demand for borrowing is not motivated by desire to improve living standards (buying new household appliances or refurbishment of the house), but mostly caused by lack of funds for buying essential goods. On average, each borrower takes 1,31.5 loans in MCO’s each year, which means that in order to satisfy his or her basic needs each borrower lacks 3000 roubles monthly ” – stated experts of “Unicom 24”

This claim is backed by facts. According to National bureau of credit stories (NBCS), number of potential bankrupts had risen from 983,3 thousand people to 1mln 31,4 thousand people. Most of arrears in payment of loans (around 65%) made by consumer loans.

What is more interesting is at the same time, while amount of borrowing and payment arrears is rising, so does buy-backs of debt by collection agencies. “Kommersant” stated that for the 9 months of the year number of buy-backs had risen at 85%, while cost of closure also risen to record 2.65%.

“Indeed, we can witness rise of potential buyers, especially in the regions – said director of department of arrears in Rosbank, Mr Yevgeny Senkosky – Players on the market becoming more professional, collection of data on loans became better, which helps potential buyers to predict the outcomes and influences the price of buy-back bundle”.

Typical debt collectors
Don’t worry, we’re bankers

As we can see, banks are profiting from rise of “debt bubble”. Not only they’ve done nothing to prevent it, on the contrary, they’ve done everything to minimize the losses caused by impoverishment of society. Collectors are also profiting from buy-backs of debts. With each day, they become more effective of ripping citizens of their hard-earned money.

This is another example of the essence of capitalist economic system. Rise of “working poor”, small salaries forcing people to take loans just to make ends meet, while ruling class creates yet another tool for squeezing money out of ordinary people.
Untill working men and women stay silent, this robbing will continue to take place.