big credit card debts

HOK3Y

Part of the problem is that the banks love getting people into these situations. Once they have you enslaved to those credit card debts, they are just creaming money from you. One of the things that has woken me up with a jolt this last year was the realisation that I have been working for my creditors. I am lining their pockets, not mine. Not the way I want to live. If I have to work for a living, then I better be getting a good living from it.


I think these massive balances are more common than we realise also and can totally understand why people are not open and honest about their finances. I have 3 friends who I know are in trouble from snippets of information but none of them have really confided the depths of it - despite them all knowing what I have been doing for the last 6 months.

HOK3Y

Have you guys ever seen the episode of Boston Legal when Alan takes on the credit card companies? I loved that show because it weaved a lot of current issues into a fictional show. Anyway, it was an eye-opening episode, even allowing for the fiction aspect.

Nebulous2

FireWyrm wrote: »

Stupid amounts of credit. I usually have less sympathy for those who get themselves into that sort of debt and consider that one is largely responsible for one's own financial situation, but it simply shouldnt be possible to obtain that sort of credit in the normal way of things. On every application I have ever looked at, they have asked (rightly) for a breakdown of all other cards in my possession. I can only imagine people are economical with the truth when filling out the application, but still, a credit check should highlight the discrepancy between what they say they have and what they really have. If the banks were exercising due diligence, it shouldnt be possible to run up such debts on unsecured lending.

Happy New Year by the way! Much of what I am referring to is historical, and the situation may have changed now, but I can assure you I always told them the truth. My recollection is being asked what outstanding balances I had rather than what available credit.

I have a lot of positives from a credit rating viewpoint. When I was trying to work the 0% interest I applied for 3-4 cards over 12-18 months, was accepted for them all with an initial £10k limit on each. Two of the lenders offered me the opportunity to double down by writing and asking if I wanted a second card. I accepted these. My two Egg Cards became Barclaycard and I have a £10k limit on each. MBNA said my credit limit would be shared over both cards but my credit limit went up to over £20k. I occasionally use all of them, sometimes after being dormant for 6+ months. I sometimes get a fraud detection phonecall after the transaction has been made, but have never had a transaction rejected.

So it may well be that lending would be much tighter now and that couldn't be replicated, but they have never made any attempt to reduce my limits.

iolanthe07

Apparently about 50% of people with credit cards pay them in full each month, which is what I have done for at least the last 15 years. Credit cards make a good servant, but a very bad master.

in2deep_2

With just over 80k in debt and 30k of that on Ccards 3 years of defaults and Barclays still put up my Ccard limit by another £300.:eek:( i didnt ask for it)

Newyorkdreams

in2deep wrote: »

With just over 80k in debt and 30k of that on Ccards 3 years of defaults and Barclays still put up my Ccard limit by another £300.:eek:( i didnt ask for it)

Yes, me too. I've got over £40K of debt and FLUID have just put mine up by £3k!!! I didn't ask for it either but not refusing just incase they offer a 0% deal in the future or a reduced % which I can take advantage of!

NYD