It is tough NOW. So how are we coping

ceridwen

Well BIgMumma - you said what I was being too tactful to say - as I can get into quite enough "hot water" on MSE anyways...:cool:

Thoroughly agree.

My definition of when one takes on credit basically boils down to urgent repairs - of home/self or pet. Certainly NOT for "consumer goodies". Can't say I've been 100% immune to a bit of credit in the past for "consumer goodies" - but not for the last couple of years or ever again - I can see FAR more clearly than is comfortable than for me that it is NOT a good idea to do so these days.

Speaking of "seeing clearly" - well...Kittie I thoroughly appreciated your comment to me about "your eyes are wide open" - and regard that as one of the highest compliments I could get from anyone:D. I've never been quite sure whether to regard "May your eyes be wide open" as a blessing or a curse - bit of both I think....A blessing because one plans and then "thank heavens I did".

So - from one "eyes open" person to another Kittie - COME BACK PLEASE KITTIE. I know and fully understand why you are feeling so upset right now. I do fully sympathise.

Please Kittie - COME BACK TO MSE if you're reading this. We need people like you.:A

EDIT: Kittie - I see you are "visiting" to read MSE still - so fingers crossed we can tempt you back to being a "poster" again......

Rummer

Not everyone has used CC for luxuries some have used them out of necessity because there has been no other way to feed their families during very difficult times. I agree that there should be greater controls and a higher impact for those deep in debt because they have not had the patience to save however my heart goes out to those that have had no other choice and are struggling everyday to pay that debt back. The sad thing is there is very little way to differentiate between to two so people in hardship will have to suffer more.

Primrose

I've read about proposals to increase the minimum repayment on credit cards every month and think it's one of the results of the banking crisis last year with so many people getting heavily into debt. We tend to use our credit cards for most expenditures instead of carrying lots of money about and pay them off in full every month, but only because we only buy what we can afford from our budget. For those who struggle financially I realise that credit cards often seem a short term solution to managing but all they are ever doing is actually prolonging the time when spending has to be accounted for. Whilst raising the monthly pay-back amount may seem hard, it will actually reduce the overall interest which has to be paid, which surely is not a bad thing.

kidcat

I read a really interesting article on credit cards a few months back and it really hit a chord for me, basically it said that buying things on credit now meant that effectively you would be able to buy less in the future.
It may seem obvious once its stated but most people do not look at credit in that way, its more buy today pay tomorrow attitude.

I am working hard to educate my family that you should always cut your garment to fit your cloth. It took me many years to clear our debt and I am absolutely determined never to walk that way again. I think back now to all the things we could have done in those years if we had not been servicing our debts and it makes me feel ill.

nannaC

How's this for another strand to this brilliant debate. If proposal to raise minimum payment on CC's, which the government wants but the banks/CC companies dont as it will affect their profit, comes into effect, whats the bet that it will be closly followed by the banks looking at the alternative way to keep profits up by penalising those who pay their credit card off in full each month which effectivly gives them free credit. I know this was aired a few months ago.

kidcat

nannaC wrote: »

How's this for another strand to this brilliant debate. If proposal to raise minimum payment on CC's, which the government wants but the banks/CC companies dont as it will affect their profit, comes into effect, whats the bet that it will be closly followed by the banks looking at the alternative way to keep profits up by penalising those who pay their credit card off in full each month which effectivly gives them free credit. I know this was aired a few months ago.

Its highly likely, especially after the changes to overdrafts made by Halifax this week. I am considering getting a prepay credit card to use for internet purchases, I noticed in this weeks email that theres one which has no fees.

On the other hand if the increase repayment thing goes thru, I would guess that people in trouble with their cards will simply pay the higher payment and then spend it again straight away so it may not have that great a profit impact.

Patchwork_Quilt

There I was, thinking 'Credit is a terrible thing' and 'I wish I could cut up my cards' when I realised that our mortgage is getting something on tick too. Our whole society is based on borrowing money.

I used to work for a High Street Bank. Just as I was going on maternity leave, they were about to get into a European country where people traditionally had very little and credit was almost unknown for anything - cars, houses etc. They were rubbing their hands with glee at the amount of debt they could get people into.

Made me extremely sad. Something has been lost but we're all a party to it.

Bargain_Rzl

Patchwork_Quilt wrote: »

There I was, thinking 'Credit is a terrible thing' and 'I wish I could cut up my cards' when I realised that our mortgage is getting something on tick too.

Well, sort of. At least with a mortgage it is secured upon an asset, and you have use of that asset throughout the life of the debt and beyond. We all have accommodation costs and it might as well be via a mortgage as via rent (assuming that you haven't borrowed a lot more than you can afford, or paid a lot more than your home is actually worth).

Having said that, I don't much like having a mortgage, even though it's my only debt (except for credit cards which I use for convenience to buy things I've already got the money for). I prefer to be unbeholden to anybody. I just feel more secure that way

ceridwen

nannaC wrote: »

How's this for another strand to this brilliant debate. If proposal to raise minimum payment on CC's, which the government wants but the banks/CC companies dont as it will affect their profit, comes into effect, whats the bet that it will be closly followed by the banks looking at the alternative way to keep profits up by penalising those who pay their credit card off in full each month which effectivly gives them free credit. I know this was aired a few months ago.

I have a feeling that one is coming nannaC. I personally only use a credit card because thats been my way of buying books from Amazon and I pay by credit card for that months worth (errr...yep...I have been buying books pretty much every month as I built up my "reference library" of useful books) - but I have been religiously packing off a cheque each month as soon as the statement came in in order to cover it. I think I have all the books I could possibly need now - so dont anticipate using a credit card ever again - unless I happen to be abroad and am accessing my money that way (to be repaid as soon as I get home again). I have already mentally prepared myself for getting charges any time I use my card in future - precisely BECAUSE I never incur any charges on it now.:cool:

ceridwen

Bargain_Rzl wrote: »

Well, sort of. At least with a mortgage it is secured upon an asset, and you have use of that asset throughout the life of the debt and beyond. We all have accommodation costs and it might as well be via a mortgage as via rent (assuming that you haven't borrowed a lot more than you can afford, or paid a lot more than your home is actually worth).

Having said that, I don't much like having a mortgage, even though it's my only debt (except for credit cards which I use for convenience to buy things I've already got the money for). I prefer to be unbeholden to anybody. I just feel more secure that way

..., and the person/firm you are "beholden to" if you are in debt is your employer. Whilst you have loads of debt to repay then you are desperate to hang on to that job no matter what - one is a lot freer from employers if there isnt any debt...:D That was one of the things that struck me most forcibly when I had to have a couple of loans before now - that I was more worried than normal about my job - due to being very aware that the job needed to last at least as the loans.