1. Improve living standards: Consumer credit can help consumers buy more goods and services within the financial scope, thus improving the quality of life. By installment payment and prepayment, consumers can enjoy goods and services in advance to meet the needs of individuals and families.
2. Dealing with emergencies: There are always some unexpected emergencies in life, such as diseases and accidental injuries, which may bring economic pressure to families. At this time, consumer credit can play an emergency role and help consumers tide over the difficulties. Consumers can purchase medical equipment and pay for treatment through consumer credit.
3. Provide convenience for life: Consumer credit can simplify the shopping process and provide convenience for life. Consumers can make online payment and offline consumption through consumer credit tools such as credit cards and flower beds, without carrying cash. Consumer credit can also help consumers enjoy discounts and points in shopping and travel, and further improve their quality of life.
The disadvantages of the role of consumer credit
1, resulting in excessive consumption.
With the support of consumer credit, consumers can buy their favorite goods and services more easily, but it may also make people fall into the trap of blind consumption, especially in holidays and promotional activities, consumers are easily induced by merchants to buy unnecessary goods, resulting in heavy debts.
2. Increase the family burden
Although consumer credit provides consumers with purchasing power, installment payment and other methods actually allocate the consumption burden to the future. Once consumers have problems with their future income, it may lead to repayment difficulties and affect the quality and harmony of family life.
3. Induce financial risks
With the rapid development of consumer credit market, the competition among financial institutions is becoming more and more fierce. Some financial institutions may relax the credit audit standards in pursuit of short-term interests, resulting in an increase in the non-performing loan ratio. Some consumers use credit funds for high-risk investments or repay other debts, which may also aggravate the risks in financial markets.
4. Resource mismatch
Driven by consumer credit, the rapid expansion of market demand in the short term may lead to problems such as overcapacity and waste of resources. In addition, excessive reliance on consumer credit may lead to an imbalance in consumption structure, further aggravating overcapacity and resource mismatch.
5. Intensify the gap between the rich and the poor.
Consumer credit makes it easier for consumers to buy high-value goods, but only for people with stable incomes. For low-income groups, consumer credit may increase their life pressure and further widen the gap between the rich and the poor.
In order to give full play to the positive role of consumer credit and reduce its negative impact, government departments and financial institutions should strengthen supervision over consumer credit, guide consumers to establish correct consumption concepts, and promote sustained and healthy economic and social development.