The demand for payday loans and elite housing has jumped in Russia in 2020

2021-01-16

Your loss is my gain, and that’s how it is

A total of 1.72 million payday loans were issued during 2020 in Russia, an increase of 13.1 percent over the previous year (1.52 million loans), reports LENTA.RU referring to the National Bureau of Credit Histories (NBCI). The Information portal Izvestia told that demand for elite housing mortgage is in double digits as well.

In October 2020, 1.67 million payday borrowers (less than 30 thousand rubles) got loans, an 11.4% increase compared to October 2019. Almost a third (31.4%) of borrowers are under 30 years old: according to experts, young people turned out to be less prepared for a crisis than the elder generations.

Microfinance providers’ lending has fully recovered from the recession in the spring of 2020 due to the “quarantine” restrictions, – says Alexei Volkov, NBCI Marketing Director. – For the most part, starting from May, the microloan lending proceeded gradually, but at a fairly steady pace. At the same time, in the fall, the number of microloans issued grew at a rate much higher than that of last year … “

Sustained growth of the microloan market” has shown clearly that the number of Russian people who are barely scraping by continues to rise. So the acute chronic condition that happened in the fall, “at a rate much higher than that of last year” once again proves that the economic crisis is still bringing pressure to bear on the most disadvantaged sections of society.

But, if there is an increase somewhere, then there must be an equivalent decrease somewhere else. Capitalism is characterized by the growing poverty for the majority of people while the wealthy minority is getting richer. In fact, this academic argument is once again highlighted by the doubled demand for elite housing mortgages against the background of a dramatic payday lending growth.

One “very successful” Russian businessman (whose name has been withheld) did not even need to take out a mortgage to acquire the English estate Windsor Park Hall in Surrey for £ 21.5 million (2.2 billion rubles).

Estate Windsor Park Hall

Just wondering, how many hired workers gave this “best employer” their labor for free to “make living conditions better”?

But the gaping chasm between the rich and the poor cannot be widening further endlessly. Poverty, unemployment, and credit slavery will do the job – more and more working people will start looking for the true reasons for their unenviable social and economic conditions.