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Consumers turn to Plastic !!
luvpump
Posts: 1,621 Forumite
http://www.telegraph.co.uk/finance/personalfinance/3279955/Credit-card-borrowing-reaches-record-levels-as-consumers-turn-to-plastic.html
Now the easy credit is drying up people are turning to there cards, but what will happen when they get maxed out on the plastic with no-where left to turn ???
Now the easy credit is drying up people are turning to there cards, but what will happen when they get maxed out on the plastic with no-where left to turn ???
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Blimey, people still paying off last christmas! I had to buy our presents on a week by week basis with cash...meant that they were low value items but the children still enjoyed what they received.
I do know what they are getting at with trying to sustain a standard of living, it was a lesson I had to learn the hard way 3 years ago when I went from being in a two job family and both of us receiving good bonuses twice a year to being a single parent on benefits. It is a shock to the system and it takes a fair bit of adjustment but the sooner the realisation hits that you can no longer afford the luxuries, the better it is financially.
Luckily for me, I was always the budget queen and would make do and mend than the one who wanted the latest gear from the shops.We made it! All three boys have graduated, it's been hard work but it shows there is a possibility of a chance of normal (ish) life after a diagnosis (or two) of ASD. It's not been the easiest route but I am so glad I ignored everything and everyone and did my own therapies with them.
Eldests' EDS diagnosis 4.5.10, mine 13.1.11 eekk - now having fun and games as a wheelchair user.0 -
http://www.telegraph.co.uk/finance/personalfinance/3279955/Credit-card-borrowing-reaches-record-levels-as-consumers-turn-to-plastic.html
Now the easy credit is drying up people are turning to there cards, but what will happen when they get maxed out on the plastic with no-where left to turn ???
I thought most cards were aleady maxed out, no sign of the £1.4 trillion debt coming down anytime soon, I fear a real headache for some come January, its normally a bad month anyway but this time the DFW board is going to explode.0 -
One wonders whether credit cards will be the next "sub prime" as people use them as a last line of defence in trying to keep up with their debts.
In other words once the cards are maxxed there's no where left to go for credit so people will be falling into bankrupcy or whatever with their cards maxxed out.
Potentially an awful lot of defaulting for credit card companies, wonder if they can afford it?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
I'm amazed that the 'credit crunch' hasn't visibly hit credit cards yet.
Less of those bonkers 0% offers but still plenty of credit available out there. I gather that defaults are rising sharply so why aren't we seeing providers tighten up considerably ... or maybe it's already happening slowly in the background?
Anyway, once people can no longer turn to plastic to buffer the financial shocks, the whole financial/economic crisis is really going to hit home. Retail and consumer service industries are going to be hammered too.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
I'm amazed that the 'credit crunch' hasn't visibly hit credit cards yet.
Less of those bonkers 0% offers but still plenty of credit available out there. I gather that defaults are rising sharply so why aren't we seeing providers tighten up considerably ... .
They didn't tighten up mortgage lending until they'd actually run out of money.
I suspect the same applies. And when that happens, it'll happen hard, complete with begging for more tax payer hand-outs no doubt.
The only really clear thing that is emerging from all of this mess is that bankers aren't actually too bright...Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Isn't there a credit card forum for fascinating stories like these, or even the house price nutters forum.Been away for a while.0
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Max_Headroom wrote: »Potentially an awful lot of defaulting for credit card companies, wonder if they can afford it?
The main difference is they have no false ideas of secured AA credit rated debt. They know people have trouble with credit cards, that is presumably partly why the interest rate is so high to cover the people who never pay it back at all.
Sure there is 0% deals but they already tightened up things there a while back by immediately charging a fee to cover costs so its not 0% really and it wins business vs the cost of advertising, hiring carol voderman or whatever
The people on this forum are an exception to the norm, most 0% deals earn big bucks for the companies I bet with all sorts of fees and special clauses0 -
Running_Horse wrote: »Isn't there a credit card forum for fascinating stories like these, or even the house price nutters forum.
I think you'll find you're already on that!
Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
sabretoothtigger wrote: »The main difference is they have no false ideas of secured AA credit rated debt. They know people have trouble with credit cards, that is presumably partly why the interest rate is so high to cover the people who never pay it back at all.
Sure there is 0% deals but they already tightened up things there a while back by immediately charging a fee to cover costs so its not 0% really and it wins business vs the cost of advertising, hiring carol voderman or whatever
The people on this forum are an exception to the norm, most 0% deals earn big bucks for the companies I bet with all sorts of fees and special clauses
Very good point regarding the lack of security.
However no doubt they'll work to some "business model" that indicates how much of what they lend they can expect back, and when.
Much like they did with mortgage lending...Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
The bit about paying for Christmas last year is fascinating. I've been helping out in a charity shop now for a few weeks and there are people I see who just pop in and look around buying items for Christmas presents.
It is amazing just how much new stuff is donated. One person bought an M&S scarf and glove set - brand new - a jewellery box - again brand new - a pair of new gloves, still clipped together and two pairs of funky socks - new. She paid just under £10 and said they were Christmas gifts.
This article is a sign of as much desperation as reckless spending. It must be so hard to have to cut back the standard of living debt has allowed people to have. It can only be a temporary stay of execution.0
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