Bank Charges - Banks Win!

vet8

Lokolo wrote: »

Nah but in all seriousness, people are arguing that its not anyones fault if they get into debt. Which is just a rediculous statement and the fact why I am arguing against it and seem to have internet people ganging up against me to tell me I'm wrong. With the counter argument that being on minimum wage, having a huge mortgage, and having 100000 kids will get you into debt.

Well of course it bloody will but noone at 18 (or 16), will come out, get a mortgage, have kids and be on minimum wage and get straight into debt. People get into debt over time! Which could be compeltely avoided!

It is very easy to say that when you are young and planning to buy a mazda sports car.

However, things happen to people; redundancy, illness, divorce etc. etc. and often debt comes as a result of this.

To carry on with what NID says about mortgages, when we bought our current house years ago we had about 40 % deposit and paid about £800 a month, then Maggie Thatcher's government started to screw up, Black Wednesday happened and over three years our mortgage payment doubled. We seriously considered selling up, which would have been a real shame as this was our final, permanent, dream home. We eventually remortgaged which cost several thousand to do and still paid over £1200 a month. The debt we incurred then hung around for years with charges adding to it all the time.

Do not be too confident that debt can be avoided.

bendix

oscar52 wrote: »

so why not stop the payment at source? - surely the embarrasment caused, that they banks try to save us from, would do the same thing? Personally, I would rather be embarrassed than have a carton of milk cost 39 quid because i forgot about a direct debit going out the day before.
Banks dont want to refuse the transaction as ten they cant charge hefty fees.

The only thing stopping a payment does is punish the beneficiary. Why should the company you organised the DD for suffer, just because you can't manage your finances?

A bank is is business to make money. Run your account properly and it's free. Name another business that provides services for free.

Run it badly, and you'll have to start paying.

Again, it seems eminently reasonable to me.

never-in-doubt

Lokolo wrote: »

But why not?

I don't get it. You're saying I shouldn't bother preparing, noone else does blah blah blah.

How does it show my immaturity by saying I am not getting a mortgage until I know how I can afford it?

And before I know? Well for starters I would get a 5 year fixed rate, so that gives me at least 5 years to prepare, knowing my rate will not change in that time. Good eh? Sensible? Mature would you say?

p.s. lets be honest, me being immature? I am not the one saying to people on forums that I hope they lose their jobs etc.

You totally missed my example! A fixed rate eh? Good luck - they are reserved for better payers, shall we say. You as a first time buyer would not be privvy to such rates/deals so again, how can you generalise and assume a mortgage is so plain sailing? It isn't and you still miss the point

I had a mortgage a few years ago for £275k and never missed a payment but for some reason when the fixed rate ended they would not let me take another, I had to change mortgage supplier. I didn't want to but felt I had to - I failed in 3 attempts to get another mortgage with other lenders even though my credit file was spot on (2 cards, 1 mortgage and a bank account)..... so I ended up having to stay on the variable which put my repayments up by almost £700 per month - thats almost what you bring home per month!

If that doesn't explain it then nothing will - my point is that although you may 'plan' to the best will in the world, sometimes the cards are taken out of your hands and you're dealt a bitter blow. Fact!

I suggested that idiot loses his job cos he is just that, an idiot. I am entitled to make a rash comment, that does not constitute immaturity :rolleyes: It was a facetious comment designed to make a point relevant to the contextual conversation at the time.

bendix

never-in-doubt wrote: »

Idiot!

Moneysaving by paying a reasonable amount for a charge and not whatever the banks decide to charge! :mad::mad:

Why shouldnt they charge what they like? You are taking their money without their permission. I'd be bloody furious if you came round to my house and took a tenner out of my wallet.

Martin is completely wrong on this, and the campaign sullies the spirit of MSE.

never-in-doubt

bendix wrote: »

Why shouldnt they charge what they like? You are taking their money without their permission. I'd be bloody furious if you came round to my house and took a tenner out of my wallet.

Martin is completely wrong on this, and the campaign sullies the spirit of MSE.

Of course they cannot charge what they want! There should be guidelines and until such a time, they are holding the consumer to extortion. Can I, when the bank gets things wrong, invoice them £175 per hour cos I sent them a little leaflet with 3pt text on it?

Martin is spot-on and he will continue to be so, when he starts the fight for round 4 (or round 2 of the defeat)....

Lokolo

vet8 wrote: »

It is very easy to say that when you are young and planning to buy a mazda sports car.

However, things happen to people; redundancy, illness, divorce etc. etc. and often debt comes as a result of this.

To carry on with what NID says about mortgages, when we bought our current house years ago we had about 40 % deposit and paid about £800 a month, then Maggie Thatcher's government started to screw up, Black Wednesday happened and over three years our mortgage payment doubled. We seriously considered selling up, which would have been a real shame as this was our final, permanent, dream home. We eventually remortgaged which cost several thousand to do and still paid over £1200 a month. The debt we incurred then hung around for years with charges adding to it all the time.

Do not be too confident that debt can be avoided.

Yes I will say I am lucky in that I know it can happen. For you it was a big shock (to everyone). What I meant to come across is that people should now realise that this could happen, such as in the year 5 years, if we get hyper inflation. People older than myself who know about this more than me (I obviously didn't experience it, I just know about it), but do you think these people have prepared for it in case this happens?

And yes, agreed, health problems can cause a lot of things. Redundancy, I do say in posts to a lot of new members make sure you have 6 months savings, for these problems. Although saying this everyone comes back saying they its near to impossible for people to do this :rolleyes:

Hell I'm not against people struggling but when people have done nothing in any sort of preparation then they do have only themselves to blame.

Also, if you notice, I am saving for a new car, not getting a car loan! If only others followed in my foot steps eh! And touch wood my current crap mobile doesn't die in the mean time! (oh but if it does, doesn't matter, as £1k is enough to replace it!)

glider3560

never-in-doubt wrote: »

Of course they cannot charge what they want! There should be guidelines and until such a time, they are holding the consumer to extortion.

Using your theory, we would have to set up the Baked Bean Price Regulator, who will ensure that supermarkets don't make any profit on the price of baked beans. They are only profit making companies, so of course they aren't allowed to make a profit on goods/services they provide.

People seem to think they have a right to lend the bank's money - which they don't. If you know a payment is due to leave your account and your account won't cover it - cancel the payment and seek an alternative method to pay the bill. After all, you don't have any right to the bank's money so why should they lend it to you?

Lokolo

never-in-doubt wrote: »

You totally missed my example! A fixed rate eh? Good luck - they are reserved for better payers, shall we say. You as a first time buyer would not be privvy to such rates/deals so again, how can you generalise and assume a mortgage is so plain sailing? It isn't and you still miss the point

I had a mortgage a few years ago for £275k and never missed a payment but for some reason when the fixed rate ended they would not let me take another, I had to change mortgage supplier. I didn't want to but felt I had to - I failed in 3 attempts to get another mortgage with other lenders even though my credit file was spot on (2 cards, 1 mortgage and a bank account)..... so I ended up having to stay on the variable which put my repayments up by almost £700 per month - thats almost what you bring home per month!

If that doesn't explain it then nothing will - my point is that although you may 'plan' to the best will in the world, sometimes the cards are taken out of your hands and you're dealt a bitter blow. Fact!

I suggested that idiot loses his job cos he is just that, an idiot. I am entitled to make a rash comment, that does not constitute immaturity :rolleyes: It was a facetious comment designed to make a point relevant to the contextual conversation at the time.

Well yes I know but I aim high

And I don't disagree with you, there is a lot of bad luck in this world, but come on, people do need to prepare for it. I understand, not everyone can prepare for everything but how many people actually prepare? Even a little bit? Some do, but I can't see most actually doing so.

never-in-doubt

glider3560 wrote: »

Using your theory, we would have to set up the Baked Bean Price Regulator, who will ensure that supermarkets don't make any profit on the price of baked beans. ?

Ok, so the can of baked beans is regulated now is it?

Lokolo

never-in-doubt wrote: »

Ok, so the can of baked beans is regulated now is it?

You mean you haven't heard of the baked bean conspiracy?