It's SO EASY to get in debt it makes me mad!

KittyKate

I am not in debt, but I have been (at Uni and just after) and I have no intention of getting myself in it again (it was my own fault, bad decisions, a bit of laziness).

I have a decent job but no assets (am saving up for a house deposit with my OH, we live in a rented apartment), I DD all my bills the day after I am paid, I don't need to own a car (live down the road from work). I try and be as OS as I can.

I logged on to my internet banking the other day to check all was well and that my internet shopping had been deducted correctly. I was shocked to find that I have been 'pre approved' for a £25,000 loan and a £2500 overdraft (I had a £250 overdraft which I was pre-approved for £1500. I took that as I had planned to buy a car and might have gone a few hundred od for a month. I didnt buy one and now I'm approved for a £2500 od! And if I take that no doubt it will increase to £3500).

With one swoop I could be almost £30k in debt and they don't even care what I spend it on or what my situation is.

I know I have to click 'accept' but it's not like it's hard. It shows how ridiculously easy it is to owe (never mind car credit, store cards, credit cards (I have been pre approved for one also!), catalogues etc) everywhere is so happy to have you owe. It makes me angry. I wish I'd had this site when I was in debt, or better still, before!

looneyleo

I know exactly what you mean! i've been taking advantage of all the credit card freebies Martin details on this site recently. I haven't got any debt (thank goodness) so got approval very easily for the cards. in a matter of a few months...I have over £15,000 worth of credit in my purse no problem! Lukily this site has taught me to be frugal with the pounds so I know I won't use them but....I could if I wanted tooo...scary!!

Broken_hearted

I know what you mean, the more we pay of the higher the credit limits go.

dinkylou

Yep, regularly get these 'pre approved' loan and card letters through my door. It annoys me every time but if I was feeling a bit skint one month, it would be sooo easy.

What gets my goat the most is when credit cards automatically up your limit without telling you or even with telling you. If I wanted extra credit, I'd ask for it!

BT_man

I get load's of offers for loans etc. that I know I can not afford...
I can not afford them, so put them in the bin... easy.
No problem if you are not a complete idiot.

yung

The temptation is always there and to say no is very hard sometime, I have been fortunate not to have felt into the trap of spending money that does no belong to me, when I was working I had 6 credit card worth over £75000 but I was only using them for the interest free period then cut them up.

hobo28

I agree. I used to be quite of the opinion that its each persons own responsibility and no-one is forcing you to. I suppose it still is but at the end of the day the balance is wrong. I think banks need to make it slightly harder as so many people now are irresponsible and/or have no financial discipline.

In the current cotton wool wrapped society we live in, I often wonder why its not applied to the personal banking sector. The only answer I can find is that the current economy is only being held afloat by people spending more than they can afford.

We have Mr Brown's miracle economy to thank for that one.

Cannon_Fodder

You are forgetting a vital element...

You can get the credit line easily enough, yes, but to get into DEBT you have to SPEND the money. So to avoid debt, don't spend. Simple! ;-)

KittyKate

BT_man wrote:

I get load's of offers for loans etc. that I know I can not afford...
I can not afford them, so put them in the bin... easy.
No problem if you are not a complete idiot.

That's not the point at all. I get junk mail also and I don't partake, nor do I take the £30k of credit available to me. I was complaining that companies are so free and happy to offer money and incentives for you to be in debt. Sometimes people feel pressure to take these loans for a variety of reasons. It's nothing to do with being a complete idiot, but thanks for your input :rolleyes:

sheraz2

i once went into my building society and when I was about to leave a nice looking lady stopped me and asked me if I had received my loyalty gift?

I was intruged and said no, she said well sit down and I will go thorugh a few details with you and we will try to send you your bonus out. So I did and to my horror a credit card arrived a few days later lol. With conditions stating that when I spend x amount I get a 'loyalty bonus' lol

So that's what she meant, I cut the card straight away and refuse to talk to these advisors when I go in now

KittyKate

Cannon_Fodder wrote:

You are forgetting a vital element...

You can get the credit line easily enough, yes, but to get into DEBT you have to SPEND the money. So to avoid debt, don't spend. Simple! ;-)

Oh, absolutely, and I don't feel any compulsion to take the credit, it's just the fact the bank to my knowledge have never met me and don't know my circumstances at all but are happy to wager 30k on me in the hope I end up paying back 50+. They are so happy for anyone whatever their situation (as long as they have a wage and no bad credit) to becom debtors.

There's a variety of reasons why people SPEND - desperation, depression, jealousy, ignorance - and whilst none of these are the bank's fault they are all too happy to offer credit without it even being asked for, so they can guage the potential risk (pre-appoved does mean the risk has been assesed but someone who will take a loan /od/cc on a singular offer doesn't really shout 'sensible' to me).

I don't want a £25k loan and I don't like being offered one at the click of the button when I'm checking my bank balance. People are often their own downfall but I don't think banks should hand them the rope to make the noose.