What the hell!!!!!!

Soup890

Hi guys,


I just joined today as I need advice and tips on how to manage my money.

Well I am a married man with 2 children. I am in debt of over 9k. I made arrangements with the banks and one high street supermarket to do a payment plan of £1 a mouth.

Today I logged into the High street supermarket online to make a payment of £1. To my shock and horror they have increased my credit limit to £1000. Do these guys have a brain. Don't they look at peoples situation. Why on god's green earth they have given me another 1k to spend?

But you know what?? I am not fooling for it. I have chopped up my cards long time ago. Sorry!!!!

Please can anyone shed some light on this?

kimplus8

if you have cut up the cards then I would just leave it be, if you have negotiated £1 per month they will soon reduce it back down again. I found that I kept being offered more and more credit a few years ago, I was buying our weekly shop on the credit card as I was so broke. I struggledto meet minimum payment and I found they increased my limits buts then swiftly reduced them now I am on payment plans with my creditors.
You can email them and ask them to reduce it sooner if you need this to prevent you requesting a new card and spending again.
Well done for joining and cracking on with a new budget

Soup890

kimplus8 wrote: »

if you have cut up the cards then I would just leave it be, if you have negotiated £1 per month they will soon reduce it back down again. I found that I kept being offered more and more credit a few years ago, I was buying our weekly shop on the credit card as I was so broke. I struggledto meet minimum payment and I found they increased my limits buts then swiftly reduced them now I am on payment plans with my creditors.
You can email them and ask them to reduce it sooner if you need this to prevent you requesting a new card and spending again.
Well done for joining and cracking on with a new budget

You have just described the situation I was in last year. I had nothing to turn to. Now that I have 2 jobs I can afford to pay my own way. I have started saving. I do blame myself for getting myself into that situation.

Thank you for replying to my post.

Muttipops

Hi, Soup, If you want tips on managing your money then I suggest you put up a Statement of Affairs on this forum under a new heading to see if there is any advice that can be given as to savings you can make on your budget and to see where your money is going. Here is a link to the SOA calculator http://www.stoozing.com/calculator/soa.php
It will help to hightlight savings that could be made and also to track where your money actually goes.


Well done for taking responsibility for your debts and for doing it now; £9k might seem huge, but not to lots of us on here. It is good that you have realised you need to do something about it now and not when the wolves are knocking at your door.


And I agree with you about the credit cards being rammed down your throat; they are businesses out to make money, even if they do so on the back of others' misery. Whilst we should all be responsible for the mess we get ourselves in, it doesn't help when they dangle the short term easy way out in front of you, like a big juicy carrot.

sourcrates

As we all know banks are in the business of making money, that's there sole purpose in life, if there not lending, there not making money.

Until you are actually defaulting on your accounts, they will still hold out hope of retaining you as a customer, hence the credit limit increase.


Even if you don't repay, they still make money from tax relief on the debt, and again when they eventually sell the debt on.


Good payers mean profit for life, but even bad payers are profitable too.