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Barclaycard to hike minimum payments in major credit card shake-up - MSE News

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  • badmemory
    badmemory Posts: 9,637 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper

    If people always repaid their debts life would be simpler and banking cheaper,
    The problem with people paying their debts on time, such as paying their credit card in full every month, then the banks wouldn't be able to charge anyone any interest on the current t & cs & like all businesses they will want to make a profit.  Although I take your point about shoplifting & fraud.

  • born_again
    born_again Posts: 20,519 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    binao said:

    I never understand  why so many people still smoke.

    Many years ago my GP said, "it's a burning question", and gave me a script for patches and inhalers. Not cheap, but a good investment for the NHS.
    If everyone stop smoking. Where are the Government going to find all that income from?

    Lets face it if they did, it is not going to save the NHS anything for a generation at least & maybe more.

    Let them keep smoking and paying the tax. It's saving us non smokers a lot of money...
    Life in the slow lane
  • If everyone stop smoking. Where are the Government going to find all that income from?
    Lets face it if they did, it is not going to save the NHS anything for a generation at least & maybe more.
    Where does government ever really "find" money from, if they want to spend they will, if they do not they will not, the long term economic consequences will be someone else's to sort out. The failure to get rid of the deficit since 2008, let alone run a surplus and start paying it off will be a long term disaster, but the politicians who created that debt will be long gone. The UK should have been running a surplus from 1998, but instead went on a huge borrowing binge, then 2008 hit and it went on a huge borrowing binge, now 2020 has hit and it has gone on a huge borrowing binge. Servicing the national debt will probably rise to 10-15% of total government expenditure within the next decade, a huge negative for future generations, all because the current and past generations would not live within their means. 
    Let them keep smoking and paying the tax. It's saving us non smokers a lot of money...
    From a purely fiscal point of view the best option would be to allow smoking, but ban filters, of course that has moral implications. 
  • binao
    binao Posts: 666 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    badmemory said:
    It hasn't always been this way in the UK. I well remember discovering and opening a current account with the Trustee Savings Bank because they didn't charge a fee. My previous banks had all charged.
    But it has been like that for over 30 years, which means that most people on here won't remember as they will be too young.  I don't know about you but I would rather not go back to withdrawing cash & trekking round the gas board, electricity board, rates etc.  That is always supposing you even had a bank account.
    I didn't have time for trekking.😊

    Used bits of paper we called cheques or paid bills at the bank.

    Good luck.
  • binao said:
    badmemory said:
    binao said:
    All ads on TV or elsewhere for gambling should be banned.

    Totally agree, although I think some TV channels would go broke if it was, but that is not necessarily a bad idea either.
    That was the argument put against banning cigarette advertising / sponsorship of F1.  It was still banned.  F1 still exists.
    I never understand  why so many people still smoke.

    Many years ago my GP said, "it's a burning question", and gave me a script for patches and inhalers. Not cheap, but a good investment for the NHS.
    I don't understand why the poorer the area, the more people smoke. It's so expensive! How can they possibly afford to? And what a ridiculous use of money. Esspecially for them.
  • phillw
    phillw Posts: 5,665 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 16 November 2020 at 3:00PM
    MattMattMattUK said:
    The issue is always with defaults, it is why payday loans had very high interest rates and still only made a net profit of around 1.5%.
     
    For 0% credit cards the issue is the cost of the credit as well as the defaults. When they offered 0% cards during 5% interest times, then they needed some people to not be able to afford to pay the entire balance off at the end (and not be able to get a balance transfer) and maybe even miss a payment to actually make it profitable.
    Borrowing is cheaper now, but the unknown is how many people will go bankrupt. They want to be close to the edge but not fall over.
    Pre covid the lenders were pretty good at picking their customers, while payday lenders didn't need to as by charging such a high apr their target customers found them.
  • Absolutely disgusting interest rates applied to all credit cards across the board. If the FCA are 'pressurising' credit card companies in an effort to reduce personal debt then the FCA as a Government agency should regulate their interest charges and get them reduced to enable reductions in the levels of personal credit. We're all suffering from the financial downturn so then it is not unreasonable that credit card companies should take responsibility for the levels of interest they charge and recognise that they cannot continue to bleed their customers with scandalous increases in minimum payments. The credit card industry has needed regulation for years and it is about time the Government and the FCA stepped into enforce interest rate reductions.
  • Barclaycard have been reassessing their position in the credit card market for some time.
    For months now limits have been reduced, accounts closed, new borrowing restricted.
    These are strange times for credit card companies, when cash is tight we tend to turn to credit more, but it can be a double edged sword, for lender and customer, as COVID-19 has seen that cash flow all but dry up, what comes next will determine the game for the foreseable future.

    interesting move, at the start of lockdown, i heard on the radio that people were paying back credit cards in record rates. people getting furlough pay for doing nothing, nothing to spend their money on, so they started paying back their debts.
    I paid off all my stooze balance because for the first time I needed to get on universal credit, so I paid  back all my cards and paid of any money I owed to people to get my bank balance down to as close as £6k as possible to avoid capital penalties under universal credit. I suspect a lot of people would have done the same to qualify for UC.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 18 November 2020 at 9:29AM

    The credit card industry has needed regulation for years and it is about time the Government and the FCA stepped into enforce interest rate reductions.
    That will simply cut off more of the higher risk customers from being able to access to credit and increase rates for the lower risk customers.

    And increasing minimum payments obviously isn't the banks 'bleeding' their customers. You've misunderstood what a payment is.
  • Absolutely disgusting interest rates applied to all credit cards across the board. If the FCA are 'pressurising' credit card companies in an effort to reduce personal debt then the FCA as a Government agency should regulate their interest charges and get them reduced to enable reductions in the levels of personal credit. We're all suffering from the financial downturn so then it is not unreasonable that credit card companies should take responsibility for the levels of interest they charge and recognise that they cannot continue to bleed their customers with scandalous increases in minimum payments. The credit card industry has needed regulation for years and it is about time the Government and the FCA stepped into enforce interest rate reductions.
    An increased minimum payment will reduce the debt by more and thus reduce interest charges
    People will always pay lots of interest when borrowing, particularly on cards if they aren't paying it off every month - that's the fault of irresponsible borrowing, not lending
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