depressed

jenhugs

Can I just point out that 19k credit card debts is a lot of debt based on a 27k income. This is why the interest rates have gone up. Goodness we have 5 k on credit cards on a joint income of 40k and I worry about that!!

Infidel

I think anything above 10% interest is criminal.

How the hell do these greedy ****s get away with charging 30% or more???? SHOCKING! :eek:

vbrindle

Especially when interest rates are so low.

They've knocked down interest on savings but a lot of people haven't noticed any improvement on their CC rates, often it's gone the other way.

lisyloo

Especially when interest rates are so low

This does not necessarily mean that the costs to car companies have gone down.
They have higher fuel bills like everyone else and higher levels of bad debt that they need to cover.

I have no idea whether there charges are justified but I do know it's not as simple as looking at BOE rates. There are other costs involved too and bad debt (bankruptcies) have risen a great deal.

NickX

lisyloo wrote: »

This does not necessarily mean that the costs to car companies have gone down.
They have higher fuel bills like everyone else and higher levels of bad debt that they need to cover.

However, they should be able to borrow the money that they are lending out on the money markets at a much lower rate, so in that sense there should be some correlation between the Base Rates and the Credit Card APRs.

I think the problem is that they are NOT borrowing on the money markets even though the rates (LIBOR etc) are lower because the banks do not want to lend under suspicion that their competitors may be insolvent.

This whole "Credit Crunch" thing, the solution is to get the banks to lend to eachother as they did previously and things will start to improve. Instead the government lower Base Rates to an all time low, reduce VAT by a ridiculous 2.5% and introduce new-fangled "seen to be done" initiatives every week.

Many of the posts on here, hikes in APRs, 0% deals being pulled, Credit Limits being dropped are all side effects of the economic situation we are facing and until this is sorted things will be difficult.

Infidel

Just think about it, all this money that has been loaned out on credit hasn't just vanished in to thin air. Most (or even all) of it has been spent, so still in the system, but unfortunately once again it's just gone to help the rich and elite maintain their massive profit margins.

:rotfl:We need a revolution!!! :rotfl:

Pollycat

Hi SLTBS
Although your debts are credit card related, you may be better asking for this thread to be moved to the Debt Free Wannabe board.

As you say money is tight, there's lots of good people on there who will give you advice on reducing your outgoings so you can clear your debt quicker.

One good way is to check out the Moneysaving OldStyle board, there's lots of good advice on reducing your grocery bills by meal planning, doing Martin's downsizing challenge (dropping down one level in the brands you buy) etc.

Good luck