China Everbright Bank recently did something quite drastic.

Now, there are nearly 500,000 middle-aged people who owe the bank 11 billion yuan in credit card debt.

They're not repaying now, and the bank has turned around and packaged these bad debts, selling them for 594 million yuan, which is basically a 95% discount.

I'm also quite puzzled: why sell them to collection agencies at a 95% discount, but not offer the same discount to the debtors themselves?

If they themselves say they can offer such a huge discount, who would still choose to be a deadbeat?

Upon inquiry, it's not just China Everbright Bank; banks nowadays handle bad debts in the same way.

What's even more alarming is that with so many bad debts already, banks are still pushing credit cards. What does this indicate?

It indicates that the profit margin in the lending business is ridiculously high. Those who have been repaying their debts faithfully have long since filled the banks' coffers; the profits were recouped long ago.

To put it bluntly, these timely repayors are the real cash cows for the banks.

And it seems I'm one of them!!!