Vicious cycle of debt

Human debtor obligations are all equal. It does not matter how and why a person came to them. Perhaps this was the last desperate step, in an attempt to survive a few more months, in the hope of correcting the personal financial situation, and maybe someone was dragged into gambling or just stopped the cash flow allowing you to live on a wide foot without looking at the airbag.

A fresh draft report on the final results of the Federal bailiff service for the past year, discourages new figures on which it is easy to trace the systemic deterioration of the situation:

The total amount to be recovered from enforcement proceedings initiated in the reporting period increased from 4.76 trillion to 4.87 trillion as compared to 2016. RUB ($1=63 RUB) (118.5 billion rubles or 2.5 %). For comparison,in 2015 it was 3.8 trillion. RUB., in 2014 – 3 trillion. RUB, in 2013 – 2.1 trillion. RUB.
84.6 million enforcement proceedings (compared to 2016, the increase amounted to 5.6 million enforcement proceedings) were performed in 2017 (excluding enforcement proceedings, the resolution on the initiation of which was canceled), of which 48.3 million (57.1 %) were acts of non-judicial bodies and officials.

Here are concentrated the different structure of debts to negotiate for good has failed. However, the huge amount of credit received in the banking sector is not encouraging:

According to the Central Bank, for 2017, the total debts of the population to banks increased by 13.2% to 12.2 trillion rubles.

The drop in interest rates should have triggered a new wave of clients willing to take loans on favorable terms, but it also increased the outflow of depositors, because the Deposit now brings very little interest.

On end 2017 year, loans to the population increased by 1.2 trillion rubles, and the funds of the population in Bank accounts – only 800 billion rubles, up to 12 trillion and 25 trillion rubles, respectively, according to the Central Bank.

Due to the active playing in the market and re-crediting of competitors ' customers, the share of overdue debt amounted to only 846.6 billion rubles:

Here the interpretation of the situation is radically different. One side claims that the economy is growing and the key rate is falling, which helped to increase salaries of the working population and to launch the delayed demand. Proponents of the second version, saying that the joy was premature and the banks will have another stress test.

Once in the situation of a guarantor on a bad loan, I have not been pulled into debt for a long time, but sometimes I witness the registration of loans to different segments of the population. Interestingly, the entrance from the street is already open again and future debtors can only choose the most favorable conditions.

However, some loans can easily spawn others that will have to be serviced regularly. There are a couple of acquaintances where five and six open credits respectively. Having satisfied on fast, any urgent needs, they now go to work, only for the sake of the fastest repayment of a debt. Having lost money, they quickly lost enthusiasm for work, because there is almost no free money and only a new one can temporarily improve the situation.

Instead of handing out loans to everyone, it would be much more interesting to see the real sector filled with long money, with minimal rates and removal of a number of restrictions on the purchase of equipment.

Implementation of the plan, when the country is on the sidelines of the economic world and is mainly engaged in the sale of natural resources should go away forever. We need a new competitive production with modern equipment and good specialists.

Opponents of filling of the real sector to affordable credit, cite different facts and paint a negative scenario. However, we continue to invest in the national debt of the main competitors, and drive our own population into an ever deeper debt hole.

On one scale is the growth of public debt, which in large economies, with a different potential for development and progress. Yes, there are a lot of problems in that model, but while we are stagnating and continue discussions, other countries are moving forward and bypassing us in many respects.

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