You're calculating the loan-on-loan interest incorrectly.



Borrow 50k, 6-period installment (platform standard 18% APY), monthly payment 9,800+!

Second month, use JD.com Baitiao to borrow 9,800 to pay it off, monthly payment instantly breaks 10k.

Third month, open Zhaolian Finance again, borrow 11k to plug the hole……

In 3 months, debt skyrockets from 50k to 68k+!

If you don't hit the brakes for half a year, you can have your car and house "installment" away by half.

This is the current reality—banks only lend to people who don't need money. They don't lend to those who genuinely need it. So where does the lending go? Previously there was real estate and city infrastructure investment, now what? Just idle circulation.
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