Is credit card use going to change as a result of rate hikes ?

spaceboy

CannyJock wrote: »

I don't pay mine off each month. And I'm always looking out for new ones. I'll be making over £2k profit this year from them.

You must spend a shed load on them. You income must be huge.

Any

CannyJock wrote: »

Most people (foolishly) accept there's a cost to borrowing on a card and get on with it.

I completely agree with everything you said, apart from this bit (& No more cards said somthing along the same lines).

Tis completely normal that debt=cost!! They don't foolishly accept there is cost to borrowing, they have to accept it, it is the way economy works.

For us, who pay within the specified period, it's not really "borrowing" as such. But those people really borrow, with the view of not paying back within 30-50 days.

CannyJock

spaceboy wrote: »

You must spend a shed load on them. You income must be huge.

My spending goes on 0% purchase cards or cashback cards. My supermarket spending on cards last month was £211.83.

Income has been built up over a few years, but it's not how much you earn, it's what you do with the money you do earn that counts. At one time, I had the same amount of money left at the end of the month that I did as a student when I was a senior consultant. Aside from 40% tax, your spending expands in line with earnings - until you realise you're not getting anywhere and give yourself a shake.

I make my profit from cards through a bit of stoozing.

CannyJock

Any wrote: »

Tis completely normal that debt=cost!! They don't foolishly accept there is cost to borrowing, they have to accept it, it is the way economy works.

Sure, most borrowing costs and any large amounts like mortgages will always cost. I was thinking specifically about 0% purchase cards, which are a completely free way of borrowing for up to a year to allow you to buy now pay later (and save the money meanwhile). When I'm helping friends or family get themselves sorted financially, there's always a 0% purchase card in the mix.

Any

CannyJock wrote: »

Sure, most borrowing costs and any large amounts like mortgages will always cost. I was thinking specifically about 0% purchase cards, which are a completely free way of borrowing for up to a year to allow you to buy now pay later (and save the money meanwhile). When I'm helping friends or family get themselves sorted financially, there's always a 0% purchase card in the mix.

Not everyone can get a 0% purchase card though.. The people who really NEED to borrow on credit card (ie don't have the actual cash to back it up) are quite likely not to be accepted for 0% purchase card.

It's only small % of people in our situation, who don't exactly need to borrow but the companies still want us to have their card and so we get these special offers.

It is on smaller scale a situation I have met recently when I found out the % my BIL is paying on his mortgage and loans... his father is multimillionair and so my BIL only goes to the bank where his father does his business... he never gets a rate advertised for us normal people.

Once you have the money it is easier to get low rates because
the higher the risk = the higher the % for borrowers = the higher the possible profit for lender.

DGJsaver

The case for basic financial schooling to our kids is getting more urgent by the month.....with the lessons encompassing banks behaviour and their way of conducting business , including the way they operate credit..then , and only then , can people say , you only have yourselves to blame.....