todays newsletter

aggypanthus

Copied this from todays newletter.. I thinks its an irresponsible and ridiculous notion, just encouraging people to go astray with spending on a card!! At the end is one phrase." if you are careful" for many, thats a very big IF. So..all your daily needs go on the card then you try to pay it off.. that could be a massive ammount of CC debt to deal with in its self.


4. Spend on a 0% credit card to make your overdraft interest-free. With discipline, this can be cheaper than getting the 0% overdrafts above.

Step 1: Apply for an interest-free spending card such as Halifax* 0% for 17 months (then 16.9% rep APR) - more options in 0% cards.

Step 2: Use the credit card for all NORMAL day-to-day spending, replacing your debit card, and only make the min monthly payments, so income builds up in your current account and pays off your overdraft.

Step 3: Once your bank account is in credit, stop using the card. Then try to repay before the 0% ends, else switch to a top balance transfer deal then.

aggypanthus

PS it didnt say if you are careful, it said TRY to repay

zerog

If you are spending less than you are earning, then there won't be any problem, right?

grumbler

aggypanthus wrote: »

...I thinks its an irresponsible and ridiculous notion, just encouraging people to go astray with spending on a card!!

Where does it encourage to go astray?
What it actually says is:

...Use the credit card for all NORMAL day-to-day spending, replacing your debit card,...

And it wasn't me who used upper case for "NORMAL"

SnowTiger

aggypanthus wrote: »

Copied this from todays newletter.. I thinks its an irresponsible and ridiculous notion, just encouraging people to go astray with spending on a card!!

Isn't it simply suggesting (effectively) transferring an overdraft to credit card debt? It suggests punters "Apply for an interest-free spending card such as Halifax* 0% for 17 months (then 16.9% rep APR)".

That would, in effect, give someone up to seventeen months to clear their overdraft without paying any fees or interest. Seems like a good idea to me. Someone who can't repay their overdraft within 17 months should probably be at least a little concerned about their financial situation anyway.

michaels

You forget, we are all children who can not be expected to make our own decisions or look after our own money. In fact only those who pass an appropriate test should be allowed bank accounts...or the vote.

blitzboy

aggypanthus wrote: »

its an irresponsible and ridiculous notion, just encouraging people to go astray with spending on a card!!

No it isn't. It clearly says "Use the credit card for all NORMAL day-to-day spending". That's not going astray, it's normal spending on things you would buy anyway. They've even written 'normal' in capital letters to emphasise it!

The going astray has probably already happened, hence the overdraft! This is just an effective way of making it cheaper (sometimes by alot!) to repay.

JakeGreen

If you have a 0% purchase card you can avoid using your overdraft by using the card for everyday purchases.

They're giving good advice to help people avoid paying overdraft charges.

HiToAll

Surely it is a good idea in principal, saving overdraft charges and (especially if you have the right bank account) making some money in interest on the money that is now in your bank account as using your CC instead. Or have I missed something obvious?

aggypanthus

Yes, as you all say, its a good idea per se, but my thoughts were that having a new int free card COULD tempt less discipline people to go mad and use the card unwisely. And we know from all the debt threads that this is real possibility.

bigadaj

aggypanthus wrote: »

Yes, as you all say, its a good idea per se, but my thoughts were that having a new int free card COULD tempt less discipline people to go mad and use the card unwisely. And we know from all the debt threads that this is real possibility.

If people are idiots they will be, you're not a lawyer bY any chance?