Why is it...

naomi123

when you start clearing your debts and being sensible with your money that the banks start offering your MORE money and trying to put you into MORE debt??

Ive been clearing debts- paid off cc and stopped getting bank charges every month - but at the end of the month I am still at the end of my overdraft limit (just not over it!). Working on clearing that this year.

Just had a letter from HSBC offering me another £1000 on my overdraft if I want it. Its veeeery tempting. I wont take it of course but why do they do this??!!

(actually- I know the answer- its to make money!)

immoral_angeluk

naomi123 wrote: »

when you start clearing your debts and being sensible with your money that the banks start offering your MORE money and trying to put you into MORE debt??

Ive been clearing debts- paid off cc and stopped getting bank charges every month - but at the end of the month I am still at the end of my overdraft limit (just not over it!). Working on clearing that this year.

Just had a letter from HSBC offering me another £1000 on my overdraft if I want it. Its veeeery tempting. I wont take it of course but why do they do this??!!
(actually- I know the answer- its to make money!)

Here's a question just out of curiosity, if you're doing so well clearing your debts, why are you veery tempted to take an extra £1000 overdraft?

naomi123

immoral_angeluk wrote: »

Here's a question just out of curiosity, if you're doing so well clearing your debts, why are you veery tempted to take an extra £1000 overdraft?

Because I think with an extra £1k I could do some work on my house (non essential but would make it look alot better). I WONT take it as Im just seeing it as more to pay back in the long run, but it feels like they are trying to sabotage my efforts of clearing debt! If they had offered this to me 2 years ago, I would have taken it and spent it all.
Like when somebody offers a person on a diet a piece of cake!

QueenB.

I know what you mean. When we still had our debt OH bank upped his OD 3 times when we where still paying off a loan with them, had a huge CC balance with them and spent most months living in the OD (all distant memories now thankfully) it made no sense. Between the banks, constant adverts and junk post it seems we are encouraged to get into debt at every turn. Stay strong and reject the new OD limit and keep going on your DFW journey.

RAS

naomi123 wrote: »

Because I think with an extra £1k I could do some work on my house (non essential but would make it look alot better). I WONT take it as Im just seeing it as more to pay back in the long run, but it feels like they are trying to sabotage my efforts of clearing debt! If they had offered this to me 2 years ago, I would have taken it and spent it all.
Like when somebody offers a person on a diet a piece of cake!

precisely because they know they can make megabucks by offering suckers money which allows them to charge interest and fees.

With your past profile you are a good bet - has paid losts of interest and nice fees and is now getting solvent.

You can probably save yourself £1000 over the next three years by refusing the offer.

DVardysShadow

I have never actually been in debt, apart from mortgages and the odd personal loan always paid on time - and cards settled every month in full. But throughout my adult life, I have always had more credit available to me than I could ever sensibly use. Enough to go mad over 6 months and never be able to pay it back.

You just have to get used to the idea that if your finances are in good health you must set your own sensible limits and NEVER assume that because someone will lend you the money it is actually a good idea to borrow it.

Derivative

When you're failing to make repayments or on the edge of such, you are not profitable as it's fairly likely you could default.

When you're making repayments but heavily in debt, you are their most profitable customer.

Because I think with an extra £1k I could do some work on my house (non essential but would make it look alot better). I WONT take it as Im just seeing it as more to pay back in the long run

Just seeing it as more to pay back is only part of it. The real breakthrough is when you realise a shinier house isn't worth £1000...