Creating Content About Personal Debt for Profit
Serious Debt Issues in China Driven by Employment Crisis and Overspending
The so-called 'debt influencers' are on the rise in China. These individuals attract attention and earn advertising revenue by posting vlogs and reviews related to their debts and experiences with debt collection on social networking services (SNS).
The British weekly magazine The Economist reported on this phenomenon in a recent issue, noting that debt-related content is spreading, particularly among young people.
This trend is driven by several factors: high unemployment rates, economic recession, and a rise in debt caused by overspending and excessive borrowing. According to the economic analysis firm Gavekal Dragonomics, there are currently about 25 million to 34 million people in China who are in default on their debts. This figure is roughly double what it was five years ago.
In fact, numerous videos have been posted on Chinese short-form platforms such as Douyin, with titles like "I drive a Bentley but owe 7 million dollars (about 9.6 billion won)." Many of these creators exaggerate the amount of debt for content purposes. An office worker in Shanghai stated, "There are even cases where people exaggerate their debt to 100 million yuan (about 19.1 billion won) to increase their follower count."
However, it is known that most debt influencers are unable to generate income and continue to suffer from the pressure of debt repayment. Debt collection agencies are increasingly using 'contact bombing' tactics, reaching out to family members and acquaintances to demand payment, which has led to a rise in reports of psychological distress.
Regarding this, The Economist explained, "While employment difficulties and unemployment are issues, there are also many young people whose debts have grown due to excessive borrowing and overspending."
In 2023, the Chinese government announced measures prohibiting insults, threats, and misuse of personal information during the debt collection process. However, due to loopholes in the personal information protection law and a lack of regulatory effectiveness, there has been little change. The debtor organization 'Debtor Alliance' stated, "Threatening behavior by collection agencies is still ongoing."
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