We are responsible for our debts, but what about lenders?

southernscouser

Perhaps all forms of credit should come with warnings like on cigarette packets!

"Warning, using a credit card can ruin your life!"

sportbeth

I think a responsible lender or even an irresponsible one should have a limit. Such as, once you have borrowed on unsecured credit at a level on a par with your salary, the plug should be pulled. It terrifies me that there are some people on here with say a salary of £20 k and £35k worth of debt.

A friend of our family's son gassed himself in a garage a few years back because of debt. He had a young baby, a rented flat and £20k worth of credit. The debt collectors had started banging on the door and threatening letters coming through the door. I've heard the story a million times over as well. It terrifies me to think that he took his life when he could have stopped at a reasonable point and sorted himself out. The spiral of lending killed him in the end because lenders kept dishing out the cash.

I earn good money, but last year I lost everything and started dreading the door knocking. I even remember sitting at home last christmas with the TV turned down in case DC's came knocking at the door. And I had about a grand's worth of credit that for a couple of months I couldn't put a penny to. Imagine that with the world on your shoulders and 20 x more debt.

Lenders should look at realistically how you could pay it back and if it's going to take 10 years, it shouldn't be lent to you in the first place. They will be the first people to make your life hell if it all goes wrong

frosty

I am in alot of debt which is my fault and nobody elses,nobody made me apply for credit cards, I dont think we can blame credit card companies for everyones debts,I dont agree with the large penalties they slap on customers for late payments ect,but I need to learn to live within my means,and since joining this site I am now learning to do this,we need to save up for things and remember if we cant afford it,we cant have it.

hobo28

Banks are conducting within the law. The drug analogy is a good one except this time, the "drug dealers and needles" are perfectly legal. Do we stop smokers from smoking themselves to death? No, we now have campaigns to educate.

We need the same attitude to credit. Used sensibly its a wonderful thing. But used badly will land you in a world of pain. I don't see why the majority of people should suffer because a few can't handle it.

Percy_Vere

sportbeth wrote:

I think a responsible lender or even an irresponsible one should have a limit. Such as, once you have borrowed on unsecured credit at a level on a par with your salary, the plug should be pulled. It terrifies me that there are some people on here with say a salary of £20 k and £35k worth of debt.

A friend of our family's son gassed himself in a garage a few years back because of debt. He had a young baby, a rented flat and £20k worth of credit. The debt collectors had started banging on the door and threatening letters coming through the door. I've heard the story a million times over as well. It terrifies me to think that he took his life when he could have stopped at a reasonable point and sorted himself out. The spiral of lending killed him in the end because lenders kept dishing out the cash.

I earn good money, but last year I lost everything and started dreading the door knocking. I even remember sitting at home last christmas with the TV turned down in case DC's came knocking at the door. And I had about a grand's worth of credit that for a couple of months I couldn't put a penny to. Imagine that with the world on your shoulders and 20 x more debt.

Lenders should look at realistically how you could pay it back and if it's going to take 10 years, it shouldn't be lent to you in the first place. They will be the first people to make your life hell if it all goes wrong

Well it is always tragic when you hear tales like this and nothing like that is worth taking your life for.

Sportbeth, you have in your post put the blame back on the lender though possibly because we are currently being brainwashed about the situation. Lenders do not necessarily know how much you have borrowed - that is why it is our responsibility to ensure we don't over extend ourselves. It is far too simplistice to say there must be a cap on borrowing - what about the 95%+ of us that manage our finances with no problems - should we be penalised as well for the mistakes of a few ? Do you really want to live in a nanny state where we have no control over our own lives ?

In my opinion it is very sad that we are moving to a very litigous society and looking to blame everyone else for our mistakes.