Why the negativity towards not paying

PinheadSK

Just thinking out loud again but...

Perhaps some of those people who are 'up in arms' about it feel that the credit companies will have their pound of flesh one way or the other? What I mean is, the money they lose is then clawed back from the people that pay by way of rate increases/increased charges etc.

I'm not connected to any company but I do borrow and have credit cards. I really couldn't care less what someone else does with their debts as long as it doesn't affect mine! If you fall on hard times and can't pay, then good luck with getting yourself solvent again. However, if you take on a debt with the intention of not paying it back then that's a different matter!

Sean

never-in-doubt

PinheadSK wrote: »

What I mean is, the money they lose is then clawed back from the people that pay by way of rate increases/increased charges etc.

No, incorrect.

A bank is a business just like Tesco and the other brands etc that you see around. What do you think happens when they have losses? They do not push up all the prices do they? they instead write it off as a business loss in their annual accounts.

Unenforceability (or non payers) do not have any direct involvement in rates being issued and if they did, then you'd go elsewhere wouldn't you?

yet again people thinking aloud but thinking before researching!

Businesses make profits and other times post losses, that is life and it does not affect the rates you and I pay today! Maybe long term, but sod that - the banks will milk themselves dry long before the debtors do!

They have a business risk department to deal with potential losses.

mufc689908

PinheadSK wrote: »

Just thinking out loud again but...

Perhaps some of those people who are 'up in arms' about it feel that the credit companies will have their pound of flesh one way or the other? What I mean is, the money they lose is then clawed back from the people that pay by way of rate increases/increased charges etc.

I'm not connected to any company but I do borrow and have credit cards. I really couldn't care less what someone else does with their debts as long as it doesn't affect mine! If you fall on hard times and can't pay, then good luck with getting yourself solvent again. However, if you take on a debt with the intention of not paying it back then that's a different matter!

Sean

I must say Sean I find that statement rather selfish.

never-in-doubt

mufc689908 wrote: »

I must say Sean I find that statement rather selfish.

It doesn;t matter anyway cos the guy's so far off the truth he may as well be in Mars! :rotfl:

PinheadSK

never-in-doubt wrote: »

...it does not affect the rates you and I pay today! Maybe long term...

So it does influence the charges then?

You accuse me of not doing any research but then defeat your own arguement? I guess logic plays little part then?

Businesses make losses but they can't sustain those indefinately without going under so they must make adjustments elsewhere. One of the areas to make adjustments is for those that have fees to put them up.

Sean

mufc689908

never-in-doubt wrote: »

It doesn;t matter anyway cos the guy's so far off the truth he may as well be in Mars! :rotfl:

It does amaze me that people will happily absorb rate increases upto 40% just to protect their credit rating when interest and libor rates are next to nothing and these companies are making a killing hand over fist.

PinheadSK

mufc689908 wrote: »

No because I dont use half of the stuff anymore that I bought i.e clothes and old wide screens etc. Not forgeting petrol, that went a long time ago.

I find that one ridiculously troll-like and begging for someone to attack it but each to their own!

I'd have expected better from a United fan!

And it is selfish... you don't pay my bills or subsidise my lifestyle. As long as it stays that way, I'm happy for you to do as you wish. Once you overtly intrude into my life, then I have to take an interest.

Sean

ElkyElky

It's a dog eat dog world. You either screw the banks, or they'll screw you. Either way, someone always gets screwed.

You just have to decide whether you're happy being shafted from the big bank with the bosses profiting from your misfortune.

mufc689908

PinheadSK wrote: »

I find that one ridiculously troll-like and begging for someone to attack it but each to their own!

I'd have expected better from a United fan!

What are your views on not paying back a credit card if Glazer owned the company.

Green and gold brother green and gold:cool:

never-in-doubt

PinheadSK wrote: »

So it does influence the charges then?

You accuse me of not doing any research but then defeat your own arguement? I guess logic plays little part then?

Businesses make losses but they can't sustain those indefinately without going under so they must make adjustments elsewhere. One of the areas to make adjustments is for those that have fees to put them up.

Sean

Nope it does not as I said, but long term it may (as the Gov't will not do another bail out will they!)....

I am actually one of the few people on here that fully understand this thanks, my research is essentially upto date and needs no additional material, thanks.

Businesses (all) make losses, every single company in the world makes losses but it is how they recoup them that matters, banks have insurance to cover losses in this way, and if not it is usually deducted from overall P&L meaning the actual shareholders are affected NOT the customers.