Credit card interest rates

Sir_Woody

Debt is about confidence. There is nothing intrinsically wrong with it as long as you can manage it.

I think it is probably also about the ability to service it.

Agreed. But what does service mean when the CC company doubles your interest rate?

PAH1

Sir_Woody wrote: »

I just saw a pig fly past my window. It was looking for a settee I think.

The goat ate it!

I wonder if there's ever been any sort of legal challenge to how credit card companies operate, with a view to restricting their bad practices and allowing a way for people to claim compensation when they take advantage of people.

For one it seems to me they shouldn't be able to charge interest on anything but the originally loaned amount, which would probably keep things more managable.

Sir_Woody

I don't know about a legal challenge to the principle of credit cards because they employ armies of well paid lawyers who will wrap things up. But there is the OFT and the concept of fair trading. Which is probably why a class action by all credit card holders would be useful. That way we could spread the load and get some real action. Isn't this the place to co-ordinate it, Martin?

Sadly the best chance long term is for parliament to legislate. Once the MPs have finished filling in their moats, renting out their duck houses and stuff of course. At the moment they are scared that the banking system will collapse if they say boo to a banker so I don't hold out much hope whoever is in power.

PAH1

Yes I was thinking a class action would probably be required. Something with a lot of people behind it rather than trying to take them on individually.

As I'm new to the world of dodgy finance I've not had time to look into what has or hasn't been attempted, or could be attempted.

Seems the banks and finance companies have way too much power at the moment. Wouldn't suprise me if that power is also being used to strengthen their position against any possible rebalancing.

There must be many thousands of people, maybe even millions, wishing they didn't have to pay extortionate amounts of interest. Needs someone with the will and ability to get them all complaining in the same direction so they are more likely to be heard and taken notice of.

CLAPTON

Excepting for mortgages and borrowing to invest in one form or another, how about saving up for things you want and only then spending?

Ok allow the occasional small balance on a CC for a month or so but nothing else.

Most (not all) CC spending is not essential and is simply about people not wanting to wait a few months until they can afford it or simply buying things they can't afford.

Sir_Woody

Excepting for mortgages and borrowing to invest in one form or another, how about saving up for things you want and only then spending?

And the retail sector would collapse with millions of jobs with it. This has been the main fear since the banks messed everything up - the withdrawl of credit would lead to major economic problems. We have to keep on spending even at a reduced rate. Do you really want 1929? Why else QE?

Some of my CC spending has been trying to support and build a business. Other has been to support children at university. Sorry son you will have to come down cos I can't afford your fees or halls. Sorry son, you shouldn't have been born. Sorry son you should have stayed stupid.

Is that the way to go? We have spent very little on buying things because we couldn't wait - probably only the odd holiday or two.

But the cause doesn't really matter which is why people who preach are not helping. The thing is to solve the problem, which I am doing (actually with the help of my bank who have been very good but then they see it all the time) .

The issue is that substantially unfair (and in my case it appears from my sums, incorrect) interest has been applied. I want to redress this inequity. And along the way look for other folk who have the same sort of problem. Isn't that what this forum is supposed to be about? Or should I shut up and solve the problems myself?

Anyone happy to lie down and have the banks walk all over you? Go find my goat as long is it wasn't eaten by the pig. In which case find the pig and trade it in for a dead parrot - at least is won't stink as much.

ILW

Sir_Woody wrote: »

And the retail sector would collapse with millions of jobs with it. This has been the main fear since the banks messed everything up - the withdrawl of credit would lead to major economic problems. We have to keep on spending even at a reduced rate. Do you really want 1929? Why else QE?

Some of my CC spending has been trying to support and build a business. Other has been to support children at university. Sorry son you will have to come down cos I can't afford your fees or halls. Sorry son, you shouldn't have been born. Sorry son you should have stayed stupid.

Is that the way to go? We have spent very little on buying things because we couldn't wait - probably only the odd holiday or two.

But the cause doesn't really matter which is why people who preach are not helping. The thing is to solve the problem, which I am doing (actually with the help of my bank who have been very good but then they see it all the time) .

The issue is that substantially unfair (and in my case it appears from my sums, incorrect) interest has been applied. I want to redress this inequity. And along the way look for other folk who have the same sort of problem. Isn't that what this forum is supposed to be about? Or should I shut up and solve the problems myself?

Anyone happy to lie down and have the banks walk all over you? Go find my goat as long is it wasn't eaten by the pig. In which case find the pig and trade it in for a dead parrot - at least is won't stink as much.

it is beginning to look as if the problems stem from a "keeping up with the Jonses attitude". Stop trying to blame the banks and try looking a little closer to home.

opinions4u

Sir_Woody wrote: »

And the retail sector would collapse with millions of jobs with it. This has been the main fear since the banks messed everything up - the withdrawl of credit would lead to major economic problems. We have to keep on spending even at a reduced rate. Do you really want 1929? Why else QE?

!!!!!! it was only a suggestion for an individual - you - to get your own house in order. In know your unsecured debts are inordinately high, but their reduction will no detroy the wider global economy. Honest.

Some of my CC spending has been trying to support and build a business.

High risk. The rates charged now reflect this risk.

Other has been to support children at university.

Teach them the marvels of Tesco Basics and part-time bar work.

The issue is that substantially unfair interest has been applied.

You borrowed on a personal credit card to effectively pump money in to a business. High risk = high rate.

I want to redress this inequity. And along the way look for other folk who have the same sort of problem. Isn't that what this forum is supposed to be about? Or should I shut up and solve the problems myself?

Flag your ideas by all means. But accept that you will get responses that may not agree with you.

Sir_Woody

I've already looked closer to home thanks very much and it has very little to do with anyone called Jones whether from Wales, Scotland, Northern Ireland or England for that matter.

I am really surprised and not a little saddened at how many contributors to this forum don't seem to understand a basic point of fair trade and accuracy. Honest, truthful, fair - don't any of these words ring a bell? I know about all sorts of risk - much financial modelling and so-called risk analyses are fundamentally flawed for reasons of non-linearity, non-reciprocity and misuse of utility.

I am clearly on the wrong forum and will forthwith stop. Maybe you are all rich, have never put a foot wrong or whatever. Hopefully the plank was never in your eyes and you all have 20-20 hindsight. Or you are so puffed up with having solved your problems that you have forgotten what it was like at the beginning of the journey.

Please don't bother to reply - just go and pour yourself a large 20-year old and sit back with the smug satisfaction of having done your good turn for the banks today. No doubt your shares have done very well.

I won't be contributing further to this board. It is not that I am hearing (sic) what I don't want to hear (sic) but that it is irrelevent, history and much of it is rubbish. I had hoped that someone would have been down my road before and would be able to offer some sensible advice, not parrot the 'your own fault' mantra.

Clearly I am wrong - although it has only been a day so far. The signal to noise ratio is just too low to make it worth listening.

Sorry if your systolic goes off the scale. Come to think of it, I'm not.

Anyone who wants to pursue a similar theme of taking some sort of action or who has anything constructive to say about the future should mail me in private.

negg

If you could pay (say) min(balance,max(balance*.05,£500)) then the debt would reduce much more quickly

Erm...but you can pay anything between the minimum payment and the balance amount on a credit card. You don't have to pay the minimum or the card off in full. Though direct debits cannot be set this way: you will have to make manual payments, but since you know how to run a business and pay bills on time, this won't be too hard for you to manage.