Credit card interest rates

PAH1

Sir_Woody wrote: »

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.

The Consumer Action Group forums may be a better stomping ground.

jadex

opinions4u wrote: »

Despite your ability to maintain it you have made yourself an exceptionally high risk and as such MBNA have priced your account to reflect this. Risk based pricing is perfectly legal.

Maybe I am missing something obvious, but for me increasing the rate someone is charged results in increasing the risk to bank of not getting the money back at all.
Say someone was paying back £70, then £80, now is struggling to pay £100 per month.
Increase it to £120 and it is not paid as only £100 can be paid hence account is not paid on time, then penalty charge is added, debt is mounting up but one's situation remains constant and only £100 can be paid, no more. Then because of all this perceived risk is even higher so the only solution is to further increase of interest?
Credit score is ruined and it is not possible to get any card/loan to transfer high APR debt to. Where does it finish?

PAH1

jadex wrote: »

Where does it finish?

Debt slavery if you try to stay honest and pay it all off.

Hence why sometimes the only way is to say you've had enough and try the other routes of either getting the debt reduced, put on hold indefinately (such as by putting the account into dispute due to missing or illegal CCA so unenforcable in court), or written off.

The clear indicator they're trying to trap you into unservicable debt is when they raise your credit limit without you requesting it, knowing full well that if you're having problems at the moment the interest on the interest will soon swallow up that new raised credit limit, but avoid you going over it and into default territory so you still try to pay it back. Plenty of people have been taken for mugs this way, and no doubt many other ways too.