TO help those who are inclined to overspend avoid bankruptcy, business insiders have worked out some tips for them:

o Try to control the debt ratio to no higher than 50 per cent of one's overall capital.

o Buy some insurances in case of tough times.

o Don't get more than two credit cards. Credit cards, while convenient, also lead to overspending. Getting rid of the extra credit cards is important for those who are prone to buy on impulse.

The main personal loan services provided by Chinese banks:

Personal housing loans

Personal housing loans account for a large proportion of bank loan services and are widely known and accepted by Chinese people. Several different kinds of housing loans are included in this category. Apart from ordinary loans for private residences, there are also personal second-hand housing loans, personal provident fund loans and personal housing decoration loans. Individuals can also apply for loans to purchase offices and other properties for business use.

Personal auto loans

Personal auto loans are becoming increasingly popular among Chinese people and quite common as a means of personal auto purchases.

Personal consumption loans

Personal consumption loans are offered to clients for specific consumption purposes. These loans make it possible for people to use money in advance of earning it, offering flexible borrowing terms. Some consumption loans are tailored by banks for particular types of purchase, such as personal consumer durable products loans and personal family appliance loans.

Personal educational loans

Two kinds of education loans are contained in this category: government-subsidized educational loans which help full-time students in graduate and undergraduate degree programmes to pay their tuition and commercial education loans to support students who have fulfilled their compulsory education continue into further study or training. For example, loans for studying abroad are available from many banks, as a kind of commercial education loans.

Personal loans backed by pledged rights

These loans are designed to solve the problems of clients who have an urgent need for cash. Borrowers can pledge their RMB or foreign currency deposit receipts, treasury bond certificates and other rights acceptable to different banks, and then receive a loan proportionate to their pledged rights' value.

Personal small-value call loans

These loans are designed to meet the occasional needs of borrowers, without the need for pledges or other guarantees.

Personal business-startup loans

These special loans are provided by some banks for individuals who are going to start their own businesses and lack necessary capital.