Are YOU responsible for your spending & debt?

mrsmortenharket

Just reading through threads & while lots are paying back debts & cutting back, there are others looking at ways not to pay back debts & also Very Angry with the banks.

For instance.

The bank gives you £10,000 limit on a credit card & you spend that.

You then find it a struggle to pay it back. The minimum payments just about cover the interest.

Do you think the bank is irresponsible for lending the money, were you irresponsible for spending it all?

I know interst doesn't help but it's all part & parcel of lending, we all know that & it's in the T&C's.

Sometimes I read about people on here struggling & it breaks my heart. And then I read another thread where someone is trying to avoid paying there debt & blaming the bank.

Yes, there has been irresponsible lending. In mortgages especially.

But WE, surely, must take responsibility if we spend what the bank LENDS us.

Have I opened a can of worms

DISCUSS, on a lovely balmy Saturday night!

IWantToBeFree_2

No one is forced into taking credit, no one is forced to spend extra money when lenders increase their limits etc.

I do think that lenders could be more responsible when they are offering credit, however, the ultimate responsibility falls with the person borrowing.

Broken_hearted

No DH is but I choose him, we are a couple therfore its our debt. There are a lotof good people on these boards who work hard to pay back their debts and a small minority who don't see why they should bother who look for a loophole to hide in.

Belnahua

I think the problem stems from people needing to always have the newest latest thing. Whether it be an electrical gadget, car, kitchen, bathroom etc.

Does it matter if the kitchen is a little tatty, when you move into your new house. Live with it for a couple of years and save the money to replace it.

Do you need a new sofa because the old one is a bit rough round the edges?

Did the HDTV really give you the extra picture quality that made the cost incurred with it?

Then you see that you have £10k to spend on the credit card, and all sensibility goes out the window.

I don't for one minute blame the banks 100%, only that they should not automatically increase your CC limit, but wait until you ask for it.

geri1965_2

I'm not in debt, but I have been in the past and I wouldn't blame anyone but myself. However, I do feel banks make it too easy for people and if they give a credit card with a huge limit to a teenager, for example, then it's hardly surprising that they are going to get into trouble with it because it's tempting to spend money you haven't got.

Other people are in debt due to being out of work and struggling to pay the bills - it's not necessarily irresponsible spending on luxuries.

Broken_hearted

Teenagers have as much right to credit as anyone else, I got my mortgage at 18 and wouldn't say that was irresponsible of the bank to give it to me.

Megatimbo

Hello all just thought i`d say that most people honour their committments with regards credit cards etc.and i`m sorry to say didnt have my light bulb moment for quite awhile

But now thanks to this board and the other folks who have mended their ways i`m on my way the frustrating thing is i want to get rid of my debts asap.

Good luck all on your journey to be debt free.

M

Gemmzie

Broken_hearted wrote: »

Teenagers have as much right to credit as anyone else, I got my mortgage at 18 and wouldn't say that was irresponsible of the bank to give it to me.

I agree, financial responsibility isn't about age.

MrsTinks

I think the vast majority of people are very responcible for the debt they are in. I know I certainly am and yet I have nothing to show for it. It wasn't silly spending on "keeping up with the Jones's" - but pure naivity when it came to finances. However I should have been responcible and looked at what I was getting myself into and not blindly trust my bank...
Some people are unfortunate and end up in debt for reasons outside of their control - to those I will gladly dedicate HOURS of trying to help them. And indeed to those who are willing to repay their debts I'll spend many hours helping them budget or fight for unfair charges to be returned...
Those who just want to get out of debt and refuse to accept responcibility - grow up! Be grown up enough to realise that you made your bed and now you have to sleep in it.

You spent it - now you need to pay it back. If you can't then accept the consequences of an IVA or Bankrupcy, don't try to run away or blame others.

kizzykizzywizzy

Yes & No - it's a combination of us AND the credit card companies / banks etc
When you are getting close to your limits, they do tend to extend them (or did - possibly not so much at the moment)
Now if by having a credit card in the first place, you were buying things that you needed/wanted before you got the credit card & couldn't afford, - what makes us think by using a credit card we can suddenly afford them
Then when we do realise we can't afford to pay the items off the card that we thought we would pay off & we then have an extra thing to pay (as in the min payment on the card), we start to struggle more & so the spiral begins, we add more to the card, struggle more to pay it. Then MR BANK/LOAN COMPANY says "I know, why don't you consolidate it" then you have a loan or a higher mortgage & then because you can't afford to pay that you start using those cards again:eek: but this time it's just to get by, food shopping, petrol - even cash at awful apr's because you have no cash.
It's a horror story, if you knew how it ended you wouldn't EVER get that 1st card:o

Megatimbo

Hello again i think people should be financially educated more at an early age,yes i agree people of all ages need some form of credit sometime the biggest being a mortgage but also need to understand the pitfalls as well, especially if it affects your well being.

Regards M