Extortionate Credit Card Interest Act Now !!!

mabski

TheExpert wrote: »

I
Certain strata of the population within the subprime credit card business (and I am talking mainstream providers here) have rates of up to ~50% Charge Off in the first 12 months of having the card. Simply put, half of all these people get a card, max it out within a few months, then go delinquent, eventually default and have absolutely nothing you can claw back. Before you lay the blame at the banks' doors, maybe you should drive around come local council estates and see where the root cause lies.

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that a bit of a sweeping statement to make ,accusing all residents of council estates of defaulting on credit!
does that mean you,ve lived on one and know first hand or is it just your opinion from your ivory tower

97trophy

mabski wrote: »

that a bit of a sweeping statement to make ,accusing all residents of council estates of defaulting on credit! does that mean you,ve lived on one and know first hand or is it just your opinion from your ivory tower

You are twisting TheExperts words.

I spent over 20 year on a council estate and I saw first hand what TheExpert is saying.

SueP19

Jemma-T wrote: »

So you knowingly run up massive debts and don't want to pay the money back and now blame everyone else?

Join the queue of people who don't or refuse to take responsibility for their spending. Banks are partly to blame but you are an adult and knew what you were doing.

If you can't manage then go see a money advise centre.

ILW wrote: »

I totally agree.
People should take responsibility for themselves and not keep blaming others for their own financial mismanagement.

moonrakerz wrote: »

Why don't you sell some of the things you bought on your card(s) and use the money raised to reduce your debt ?

You got yourself into debt - why should you expect others to bail you out ?

Firstly I accidently hit the "thank you" button to the first reply, I in NO way intended to thank to any of the above mentioned narrow minded people

Tracey I am in the same boat as you, my interest has risen from 15% to 35% these last years and this was after a debt was ran up!!!!

The credit card companies are deliberatly penalising people who cannot clear their credit card balance every month

If I was you I would hop over to the Debt Free Wannabe board, we are a lot nicer bunch

I will sign the above petition straight away and than you for bringing it too our attention

97trophy

euronorris wrote: »

Profit, profit, profit!.

I would rather the banks make a profit then loose money and be bailed out by us taxpayers and our children.

Profit creates jobs, profit funds pensions. The shame is in losing money.

euronorris

ILW wrote: »

I think 30% is a pretty reasonable rate for a high risk loan.
There is much, much worse out there.

I agree that there are far worse out there and so, relatively speaking, 30% seems quite reasonable.

But then compare it to an average loan rate (unsecured), or mortgage rate and it doesn't fare so well. The rate on my loan is only 6.62%, but my CC is over 30%!

Oh, and to refer to an earlier comment, can't remember who by. Consolidation loans are not often recommended as they often end up costing more in the long run (as you pay them back over a longer time) and the tempation and ability to run up new debt on the cards, overdraft etc is too great.

Better to learn the lesson the hard way and pay off the cards as quickly as possible.

Yes, I have a consolidation loan, but it is from before I found this site and got all of the good advice that I have. I am learning my lessons and progressing each day.

The problem with 30% + interest rates on cards is that, for those on low incomes, the minimum payment may be, say, around 60 GBP (for example), and that may be the absolute maximum that person can afford to pay each month. 90% of that minimum payment, at least, will be interest, meaning that the actual debt does not decrease very much at all, month on month. Therefore, continuing to repay at that rate means that it could take them about 40 years or so to clear (depending on the amount of debt of course). And they would then end up paying far, far, far more than they ever borrowed originally!

I wouldn't mind so much if they reduced the rates, as you reduced the balance (as they could then see that you are trying to pay back), but they seldom do this! Not without a little persuasion anyway.

euronorris

97trophy wrote: »

I would rather the banks make a profit then loose money and be bailed out by us taxpayers and our children.

Profit creates jobs, profit funds pensions. The shame is in losing money.

The question remains, why were the banks lending to people who obviously couldn't afford it in the first place. Then hiking up the interest rates, only serves to ensure that they will default!

The banks are not blameless in this. I don't deny that the individuals are either, but the blame does not lie solely at our feet!

mabski

97trophy wrote: »

You are twisting TheExperts words.

I spent over 20 year on a council estate and I saw first hand what TheExpert is saying.

im not twisting anything.
those are his words not mine
people defaulting on credit happens across all social backgrounds so why specifically mention council estates if not to discriminate against those residents that live there

BeautyandtheBeast_3

Jemma-T wrote: »

If you can't manage then go see a money advise centre.

I think you are looking for the correct word which would be ADVICE
:A

LondonAndy

Hi TraceyDawn :hello:

I agree with you that the banks (especially the bailed out ones) should be giving people a break and not looking to impose rates at c. 30% for credit cards.

Yes, they have to price in defaults etc but 30% + is a very high cost. I suspect that they are doing this to people with no viable alternative to move away and get the best deals. They are also hiking rates at the maximum allowed with little notice....

Good luck with your debt clearing and I will sign your petition forthwith. It would be good to see the bosses before the Treasury Select Committee (yet again!) to explain and justify some of these rates charged after taking large amounts of public money.

Jemma-T

Nobody's attacked anyone and especially anyone coming here for help or advice.

This specific sub-forum is about Credit Cards I believe and not for people making excuses, refusing to accept a few facts or for people making stupid statements like "Extortionate Credit Card Interest Act Now !!!"

Debt isn't a joke and being in debt isn't normally funny (it may be for some) but to make a post about a load of child-like people setting up worthless petitions at the tax-payers' expense (in hosting bills) is no better than scammers.

Maybe the forum Mods can start a new sub-forum called "I'm Not Paying My Debt, I'm Keeping The Goods and Services I Obtained, Everyone Else is To Blame and I want To Use Smoke and Mirrors, Excuses, Obfiscation, Bullshi* and Lies So I Don't Have To Take Any Responsibility". OK, it's not very catchy but it's pretty close to the truth lately when I've read some ridiculous posts here. If people need help they should, do and can ask and we're always very happy to help -but not to take part in a mass appeal to blame other people.

Now, was someone needing help? :money: