Proof the banks are keeping us in debt.

CLAPTON

a4a wrote: »

So cars, consolidation loans, loans for education etc all make up the 1% and are bad ?

education I see as an investment and so in general is a good reason for a loan

but a car loan must be one of the biggest reasons for people defaulting and having their credit record trashed : silly people earning modest incomes wanting to borrow silly sums for street cred cars; madness

a consolidation loan is simply moving debt around to achieve e lower overall cost; although silly fools often borrow more than they NEED to consolidate to have a little holiday or finance a car.

maybe you might consider spending some time on the debt free wannabe board to see the lasting damage debt causes.

Pixie5740

a4a wrote: »

Whether the advert was misleading or not, it seems a shame that the OP having decided they don't want to pay the higher rate, has now got to contend with being branded as desperate as they now have a search on their file. QUOTE]

Applying for one loan isn't going to make the OP look desperate to other lenders. Applying for 5 or 6 loans in quick succession would make someone look desperate.

Pixie5740

mnireland wrote: »

*Regarding my reasons to hate the banks more than most, I was put out of business by PayPal eight years ago after an incorrect fraud investigation due to multiple returns in my online business. The multiple returns were caused by a manufacturing fault in camera equipment I was selling via my website. I took on the debt of the business personally rather than cost my other suppliers and customers money by not paying them. With interest this totalled £330,000 which I saved interest on and managed myself through getting multiple jobs and moving balances around (up to 3 times a week between loans and credit cards - see other resources on this site for how to be a "rate tart" and "stoozer"). It will still take me 14 years to pay it all off, of which 8 years have passed. I have never missed a payment (giving me an excellent credit rating), everyone from the business got paid and my annual wage is around £20,000. I am quite proud of my debt management success so far and the fact no-one lost money but me, but at the same time I do not give the banks or their employees a second of my time on account of the exceptional lies and poor advice they have tried to give me over the years.
My favourite quote from a Bank of Scotlands' Mint card representative is still "high interest rates don't matter when it's over such a short period of time". (It was a loan over 3 years).

Whilst it is admirable that you have taken all this debt so that other wouldn't be out of pocket was that really the best decision for you? Maybe it would be worth speaking with one of the debt charities to get some advice.

a4a

CLAPTON wrote: »

education I see as an investment and so in general is a good reason for a loan

but a car loan must be one of the biggest reasons for people defaulting and having their credit record trashed : silly people earning modest incomes wanting to borrow silly sums for street cred cars; madness

a consolidation loan is simply moving debt around to achieve e lower overall cost; although silly fools often borrow more than they NEED to consolidate to have a little holiday or finance a car.

maybe you might consider spending some time on the debt free wannabe board to see the lasting damage debt causes.

I understand your point but its a bit of a generalisation. Some people want to be 'street cred' its true, but many may just need a new car because the old one is costing too much to run etc and yes silly fools often borrow more, but they are just that, silly fools. Is everyone (or the vast majority) who take out consolidation loans silly fools?

I was more interested really though, in whether these loans fit into the 1% bracket you mentioned in your previous post?

CLAPTON

a4a wrote: »

I understand your point but its a bit of a generalisation. Some people want to be 'street cred' its true, but many may just need a new car because the old one is costing too much to run etc and yes silly fools often borrow more, but they are just that, silly fools. Is everyone (or the vast majority) who take out consolidation loans silly fools?

I was more interested really though, in whether these loans fit into the 1% bracket you mentioned in your previous post?

Plenty of cars in the 2k bracket; reliable, cheap to run, cheap to insure : no need to buy an expensive car.

if one already owns a car then anyone with two brain cells knows they will need to replace it in due cause: so they should start to save for that future car.
I'm sure you do.


as I've already said, a consolidation loan is simply a way of shifting debt around and not new debt
obviously, once in debt it is best to pay the least interest possible and if shifting debt around achieves that then so beit.
just resolve never to get in debt again.

a4a

CLAPTON wrote: »

Plenty of cars in the 2k bracket; reliable, cheap to run, cheap to insure : no need to buy an expensive car.

if one already owns a car then anyone with two brain cells knows they will need to replace it in due cause: so they should start to save for that future car.
I'm sure you do.


as I've already said, a consolidation loan is simply a way of shifting debt around and not new debt
obviously, once in debt it is best to pay the least interest possible and if shifting debt around achieves that then so beit.
just resolve never to get in debt again.

But if someone likes cars and feels they can afford the repayments on a car that is 10 or 20k, what is wrong with that?

Borrowing beyond your means is crazy, I agree, which is why lenders are so much stricter today, but if you want to borrow to have something better and think you can afford the repayments, then why not?

a4a

And besides, what if you haven't got 2k now and your old car has blown up, what do you do, especially if you need it for work?

CLAPTON

a4a wrote: »

And besides, what if you haven't got 2k now and your old car has blown up, what do you do, especially if you need it for work?

you buy another from your bloody savings.

a4a

CLAPTON wrote: »

you buy another from your bloody savings.

Ah of course, if life was that simple.

I've just spent my savings on something important, and now my car has blown up unexpectedly and I need to get to work, but I know, I will just dig into those other savings that I haven't got, it's all so simple!

CLAPTON

a4a wrote: »

Ah of course, if life was that simple.

I've just spent my savings on something important, and now my car has blown up unexpectedly and I need to get to work, but I know, I will just dig into those other savings that I haven't got, it's all so simple!

If you are a home owner and/or a car owner then 'unexpected ' events are certain so you plan for such events.

What was more important than getting to work? Flat screen TV, holiday, new handbag?

If you KNOW that the car is essential to get to work then you keep some money in reserve.


Indeed, many people are constantly surprised that Christmas comes round in December each year and have to use the CC to fund the unexpected costs.

Who can say when one might lose a job or have overtime reduced: or family matters get in the way: having savings is essential not an optional extra.