Former finance worker Lei Xiaoyu in a southern Chinese city is being pursued by debt collectors due to a mortgage delinquency, Reuters reported on Wednesday.
Lei, who lost her job in late 2022, is struggling to repay the mortgage and credit card debt she took on to buy a 1.3-million-yuan ($181,139) home in Huizhou.
She regrets the purchase made seven years ago and feels trapped as she tries to avoid foreclosure on her only house.
The number of Chinese facing similar financial challenges is increasing, driven by a property sector crisis, local government debt, and economic uncertainties.
Rising mortgage delinquencies could have negative effects on property prices and consumer confidence, complicating China’s efforts to stimulate household demand and stabilize the economy.
In 2023, the number of foreclosed homes in China surged by 43 per cent to 389,000, with over 50,000 units foreclosed in January alone.
This trend is expected to impact consumption and caution against excessive property investment, according to analysts.
Lei’s income from selling goods via livestreaming is insufficient to cover her monthly mortgage payments of 4,200 yuan, leaving her struggling to meet basic living expenses.
She has refrained from spending on new clothes or travel since 2017 and is unable to support her mother, who relies on a 3,000-yuan monthly pension.
($1 = 7.19 Chinese yuan)
