irresponsible bank loan.

ROMORE26

when i was about 21 i was in a low paying job and the yorkshire bank let me run up loans and overdrafts for over £ 5000. i am still struggling to pay these off 5 years later. i think this is massively irresponsible of any bank to do, giving a young and foolish person such massive credit, knowing they would probably struggle to pay them back. is there anything i can do, i know i got into the debt but they let me. if they were a bit more responsible maybe i would be in a better position now. it was just so so easy and i was young then and didnt think of the repercussions. cheers rob.

tom188

Ultimately as you say it was your fault. If you appeared to be managing ok on the credit available there is nothing to stop Yorkshire Bank lending you more if you request it, and as far as I can see they have done nothing wrong. Just because you are young does not mean you are irresponsible, after all the bank does not no you, and to make such a suggestion would anger many more people.

I suggest you look at the tips about lowering aprs/balance transfers and visit the debt free wannabe board for suggestions of how to cut down on expenditure.

Rafter

Rob

Lending to young people is a tricky area.

Early in your career it is likely you may need a car and your earnings will start low. It is always likely that bank of mum and dad may be there to bail you out.

£5000 of debt when it is likely your income will increase rapidly is not irresponsible lending unless for some reason your income was never likely to increase.

The reasons that banks charge interest rates higher than the bank of england is that they are applying a 'risk premium'. This is because it is likely that consumers or companies will be more likely to default on their loans than the government. So the interest you pay to Yorkshire bank, includes the risk that some people like you may find it so difficult to repay their £5000's that they have to go bankrupt or make some sort of other arrangement.

I'm sure the majority of 21 year olds are very grateful that they could borrow money to get their first car or pay a deposit so they can move into a rented house.

I'm sure there are loads like you though who regret borrowing and want someone to blame.

R.

mountainofdebt

What was your income at that time? Did you disclose any existing debts when you applied for these loans/overdrafts?

I am only asking as I am sure that many people have massaged their income and existing debts inorder to get more credit.

ROMORE26

i was on just over the minimum wage at the time. all my debt was with the bank. i also had a credit card with them. every week my wages were just not enough to cover my out goings, so id phone them up and arrange a higher overdraft, and every week they would give it me no qeastions. at that time my job was unskilled and was never going to pay any better money.

Astaroth

Your point.... "at that time" .... suggests this is no longer true. As others have pointed out, banks will at times give credit to young people (particularly students) above that they would give to someone say in their 40s because they firstly realise when you are starting out in life on your own you are going to have more outgoings than someone who already has their own home/ furniture/ car etc, that your salary will most likely go up (subject to your schooling etc) and that if they help you out now then it will probably build brand loyalty for when you need things like mortgages and significant loans etc.

As soon as you hit 18 the law sees you as a full fledge adult who is mature enough to make informed decisions like what you are able to afford to pay etc.

I agree with others here, you need to accept responsibility for your own actions and not look for someone else to blame