Virgin - Changes to interest rate

Inactive

staffie1 wrote: »

What we need more of is people managing their finances properly. Used to be called home economics or something when I was at school.

It was called " common sense " when I was at school..

sparkey1

staffie1 wrote: »

Let's hope so. It might make people think twice in future before running up debts they can't service and then being forced into bankruptcy!

What we need more of is people managing their finances properly. Used to be called home economics or something when I was at school.

Agree with you. However this needs to be done sensibly. For example, if your credit card rate had been 11.9% for several years, and then you decided to take advantage of an 11.9% rate to buy a £10K kitchen over a few years via your credit card, how fair is it for the company to whack it up to 35%. Its not.

Yes I know they are variable agreements, but where people are not abusing their accounts and staying within the normal usage terms they should be allowed to continue to pay at the existing rate. Ok, put new spending on the new rate, but not the old.

So the way forward is for the banks to put up rates gradually, and not apply them to existing balances. Then people can adjust their spending and budgeting.

staffie1

sparkey1 wrote: »

Agree with you. However this needs to be done sensibly. For example, if your credit card rate had been 11.9% for several years, and then you decided to take advantage of an 11.9% rate to buy a £10K kitchen over a few years via your credit card, how fair is it for the company to whack it up to 35%. Its not.

Yes I know they are variable agreements, but where people are not abusing their accounts and staying within the normal usage terms they should be allowed to continue to pay at the existing rate. Ok, put new spending on the new rate, but not the old.

So the way forward is for the banks to put up rates gradually, and not apply them to existing balances. Then people can adjust their spending and budgeting.

I agree sparkey. I wouldn't like it myself if my cc provider did that to me.
Needs to be more sense on the part of borrowers and fairer treatment by the cc companies all round. They need to build sound, lasting relationships with their customers.

Sportbilly_2

I'm actually quite looking forward to paying off my card and being asked why I'm cancelling when I ring them up. Big limits, long 0% interest free periods and small repayments are dangerously attractive, and I'm glad I used the card sensibly otherwise I'd be in some bother about now.