credit cards make me sick

malcolmffc

Why? They give me cashback, 0% exchange rates abroad and (effectively) an optional interest-free payday loan every month. Used properly, they're a very useful tool.

Barneysmom

want2bmortgage3 wrote: »

and credit card companies

lets get rid of them and do them out of business

that is all.

I agree with you Op. Never had one, never want one.
Too easy to spend on them.

kadiea

Oh c'mon credit cards are awesome mr credit card hater. they serve a major purpose in todays society. Enjoy living in the dark ages with a debit card and cheque book!

exel1966

The only people who would find credit cards sickening are those who aren't responsible or disciplined enough with their finances. Credit cards per say do not get people into trouble or cause hardship. It's sheer greed from those incapable of self control who seem to think it perfectly OK to live way beyond their means without any thought of the possible consequence and who see the 'credit limit' as a target point to be aimed for.
Card company income comes mainly from retailer transaction fees and not from Joe Public paying late payment fees/interest.

KingElvis

I must admit I find mine useful.

kelpie35

Used properly, they're a very useful tool.

dzug1

want2bmortgage3 wrote: »

and credit card companies

lets get rid of them and do them out of business

that is all.

Barneysmom wrote: »

I agree with you Op. Never had one, never want one.
Too easy to spend on them.

So let's get this right. Because a small proportion of people are too indisciplined to manage a credit card the majority that can should not be allowed to have one?

Nice to see it stated so clearly.

ALIBOBSY

pvt wrote: »

Myth # 1


Credit Card companies make money out of all their card users, except of course those who never pay them back.

Myth # 2


The CC companies get most of their revenue from the margin they charge retailers, not from the goons who pay interest on them. The interest rate on my CC is currently 5.9% pa - they're not going to get rich lending unsecured at that rate.

I would disagree with the first part here. Unless someone fraudulently got credit ran it up then left the country, even defaulted cards rarely cost the banks money.

The most common situation would be someone takes out a card in good faith runns it up close to the limit and keeps paying at least the min and bits extra each month for a couple of years. As its rolling credit and interest adds on to the balance each month the card company very quickly get back their original balance and are just raking in the interest each month. Then something unexpected happens, sickness, unemployment etc and they can't afford to keep up payments, many at this stage limp along paying what they can, scabbling to cover the min whilst the CC company slap charges and interest on, if the cust has any sense they will call up and make some kind of arrangement to pay and the limp along a bit longer, meanwhile the outstanding amount is less and less capital and more and more made up of charges and interest and interest on charges etc etc.

Eventually either the cust defaults again or the cc company breach their own guidelines and sell the debt on even though the cust has kept to their reduced payment plan.

The cust then has to deal with the debt collector. meanwhile the CC company will have made money over the whole period via the original retailers, then all those payments, then they sell on for a fee and write the "bad debt" off against tax. So all they have "lost" is possible extra potential interest and charges, they will have overall come out ahead in the deal.

ali x

ALIBOBSY

dzug1 wrote: »

So let's get this right. Because a small proportion of people are too indisciplined to manage a credit card the majority that can should not be allowed to have one?

Nice to see it stated so clearly.

You could say this about illegal drugs, say cannabis which statistically and from a pureply factual scientific basis is far less damaging to people and society than say alcohol and ciggerettes.

"Because a small proportion of people are too indisciplined to manage to only use a small amount recreationally, the majority can't have one?"

Personnally I believe both alcohol and ciggerettes are horrendous in the costs both in cash and emotional costs to society and it would be more benefit to ban both than is gained by those who use them without too much cost. But society makes choices about what is allowed and what costs are acceptable for that.

I believe the costs to society of the free and easy credit over the last generation has been far too high to be balanced by a minority who use the credit in the self disciplined way you describe. Moreover the whole push of the financial sector as well as sucessive governments has been to push the idea of spend now worry about it later, it is not those being careful with their spending and paying the cards off in full every month that fuelled the last big boom.

I actually hope we have a long slow recovery and that lending never goes back to where it was, for the sake of society and our children I hope house prices fall and settle at a lower rate and attitudes towards credit and money completely change.

I will teach my kids never to use credit unless unavoidable, to save to spend where you can and to be self discpilined in their spending, I just hope society re-enforces these lessons rather than launching into another boom cycle down the line.

Ali x

LovelyLeeds

bert&ernie wrote: »

I think we should remember that those who pay nothing for or make money from their credit cards can only do so because others pay the bill. Cardholders who do pay interest and charges effectively subsidise the services provided to those who do not.

Well that takes the biscuit. That is the most ludicrous statement I've ever read concerning blaming other people.