Credit Card tragedy

cafenervosa_2

Just thought i'd post this link for you guys to check out. It's about a man who got in debt up to £100,000 on Credit cards.

http://www.thisismoney.com/20041001/nm83067.html

bhushanvaidya

A very sad story but how would the credit card companies know whether or not he had capacity to understand what he was getting into. Otherwise there would be huge delays for everyone while they requested psychiatric reports an all applications. It appears from the article that he was well enough to be able to fill out multiple applications which can be a feat in itself.

Smitty

It is a heart wrenching letter, but in these circumstances I think there are usually lots of other problems besides the debt, otherwise why not just declare yourself bankrupt.

Milarky

Why can't credit cards and other lenders get their heads together and set up a 'clearing' system for those encountering difficulites? When people deal with creditors at present they often work through intermediaries such as free debt advice clinics and CABx.

The standard arrangement it to draw up a budget, work out what's left and allocate this amount proportionately. But all creditors have to be individually called upon/written to - so much of this work is actually duplication. Also the free agencies have to continue to follow up with their cleints and deal with enquiries from individual firms.

If, instead there was a single 'clearer' for the majority of commercial lenders - one point of contact - this could distribute a single payment to all creditors under the scheme. But the important point is that this would take pressure off the borrower, and so create a 'safety valve' against many of the pressures this poor man must have faced..

Once you enter into agreements like these at present with lenders, interest and other charges are almost certain to be frozen - and that too removes much of the fear and anxiety.

I'm not saying that the present arrangements are wrong - just that a 'clearing' system is the next logical step. and could strengthen them.

If sufficiently effective working with those who would have to volunteer, at present, I could also see this being extended to a kind of 'default' scheme - whereby debts above a certain level would trigger 'debt administration' and the happless borrower would then be told that they HAD to

1) return all credit cards

2) make a single mean-assessed payment into the 'clearing' scheme instead

The further benefit of going down this route is such schemes would 'warn' others who borrow that the 'freedom' they so easily enjoy at present could be 'taken' from them at a stroke if they act irresponsibly. This will move people to show more restraint at the margins of borrowing, hopefully.

Robert_Sterling_3

Perhaps all applications and details of customers should go through a central agency and then be forwarded to the lenders.
The central agency would hold details of what cards and credit limits each customer had. It could determine the maximum credit total which could be allowed having regard to income tax returns etc.
It might bring an end to out little credit card game though.

Robert_Sterling_3

Perhaps all applications and details of customers should go through a central agency and then be forwarded to the lenders.
The central agency would hold details of what cards and credit limits each customer had. It could determine the maximum credit total which could be allowed having regard to income tax shown on returns etc.
It might bring an end to out little credit card game though.

Meanwhile ... On with the motley.

cafenervosa_2

I agree there should be some system in place to stop this happening.

zcaprd7

Everytime you apply for a card the company can have a look at how much you owe others - if they want to lose money so be it, but it shouldn't impinge on me in any way?

System

All I can say is he effectively got a spade and dug his own grave. This proves to me why I:

1) Do not have any debt on credit cards, although I do own one

2) Refuse to ever marry (due to the risk of losing my children if the relationship breaks down)

Being a father in this country, and a relationship breaking down, is an automatic 'loss of children'.

3) I will never ever buy a house as clearly the market is pathetic and will remain so for many years to come. I'm nearly 24 and will never willfully create a situation where I'm paying far too much on a mortgage. If I have to rent all my life then so be it.

One day I'll be dead, just like the guy in the article. Only I won't be the one putting myself there.

Robert_Sterling_3

This and another message in this thread has been deleted as I realised it had gone "off topic"


Sorry Dave   .... I can see that my removal of the original message affect your own message



I do appreciate that it is difficult to get on the property ladder today.

When I was younger hardly anyone at all could get on the property ladder.  Typically they put their name down for a council house.  The waiting time was years.

System

Yes, and I bet you earn way more money than most of the rest of us.

Try getting on the housing ladder at the age of 24 with house prices as high as they are.

Oh, I have a girlfriend. I just don't trust the courts. I'd love to have children.

You comments are based from around 1981 onwards, around when I was born. So therefore useless as I was growing up then.

This is 2004. Older people have it far easier, as they bought when the market was affordable.

I couldn't buy a house back in the 80's or even the 90's.

Hence my comments.

Credit cards - I could die tomorrow. I don't want to leave my family to pick up the financial pieces. I prefer to live as simply as possible.