worst unsecured debt that you know of?

Ruby_Hepburn

sourcrates wrote: »

Been asked a few times on here this question.

There are lots of people with between 50-100k of debt, some earn high saleries and have just been slack with there budgeting, but a high proportion are below average wage earners, and you have to ask yourself how can banks allow people to borrow up to 4 times there annual income, it's a ludicrous situation to be in.

The issue I have with credit availability (a loan in my case) is the lack of affordability checks they do. We spoke to our financial advisor regarding taking out an £8k loan for home improvements. He made us fill out an sheet detailing every single outgoing we make each month, in the same amount of detail as what we did when applying for a mortgage. Not only did it open our eyes to how much we spend (which we could cut back on) but he advised us not to overstretched ourselves with our monthly repayments. Sound advice we took on board. When speaking to the bank they literally just asked how much our mortgage and council tax payments were. And that was it. Although they did mention they wouldn't lend more than double my income which I suppose is a good thing.

I still think its far too easy to get credit, especially as you can do it all online without really speaking to anyone (as far as I know anyway) I know I got my credit card at 18 without having to leave my bedroom. which leant to my irresponsibility with money. I just wasn't aware of what I was doing at that age

sourcrates

Ruby_Hepburn wrote: »

I still think its far too easy to get credit, especially as you can do it all online without really speaking to anyone (as far as I know anyway) I know I got my credit card at 18 without having to leave my bedroom. which leant to my irresponsibility with money. I just wasn't aware of what I was doing at that age

Yep, it's like love heroin, once tasted, your hooked for life !!

They catch you young, and want to kep you borrowing as much as possible, then your a customer for life !!

Profit, profit, profit that's all they see you as !!