Banks and person centred service

Ebe_Scrooge

EmekaDuru1 said:

True. But what are loans for? Are they not products and brigdes for creating finance?
You seem to miss the point that I feel discriminated against by the bank I have banked with for that long.
There is hardly any enterprising individual who doesn't need a loan but this type of discrimination empowers others better.
My outgoing is the problem here, the high cost of interest. Why pay 67% when I could have less than 20% from a bank I have been with for over a decade? 

To reiterate what has already been said, no-one is discriminating against you.  Look at the facts.  You have £10,000 of credit card debt that you are obviously struggling to repay.  You've tried to take out loans before - the only people who are prepared to lend to you are those that charge a very high rate of interest.  Why?  Because they know you are a big risk (I mean in pure financial, statistical terms, not personally).  They charge a high interest rate to cover the risk that you'll never repay them.  Lower-rate loans are only available to those who have demonstrated a solid history of good financial management.

I apologise if this sounds harsh - it's not intended to be a personal attack.  I'm merely trying to help you understand how lending works.  In a nutshell, the statistics indicate that you're a high risk, so you have to pay more if you want to borrow money.

If it's any consolation, governments worldwide face the same problem.  Britain, France, Germany, for instance, can borrow money at quite reasonable rates, since it's pretty much guaranteed that they'll pay back what they borrow.  A war-torn country that's run by dictators would have to pay massive amounts of interest if they wanted to borrow money.  OK, that's slightly tongue-in-cheek, but the principle is the same whether you're talking about an individual, a company or an entire country - it all comes down to risk, pure and simple.

Ergates

It might sound like a good idea - borrow at a lower interest rate to clear the higher interest rate.

But from the perspective of the lender - once they lend you the money they have no control over what you do with the money.  You can say "I'm borrowing this to clear this other debt and reduce my payments" - but they'll have heard that many many times before, and they'll also have had many many people say that and then not do it.  There are countless stories of people who took out consolidation loans only to end up just doubling their debt instead.  The rules about responsible lending have tightened significantly in the last few years so many banks have reduced their appetite for risk in response.

MEM62

EmekaDuru1 said:

True. But what are loans for? Are they not products and brigdes for creating finance?
 

Loans are expensive and the higher risk you are assessed to be more expensive they are.  If you constantly live on large amounts of borrowing you will eventually end up in a situation similar to yours.    

EmekaDuru1 said:

You seem to miss the point that I feel discriminated against by the bank I have banked with for that long.

Whatever you feel, this is not personal and you are not being discriminated against.  In fact, the bank might be doing you a favour by not letting you dig your financial hole any deeper.  Remember, you cannot borrow your way out of debt and there comes a point where you have to deal with it another way. 

EmekaDuru1 said:

My outgoing is the problem here, the high cost of interest. 

So does this not demonstrate to you that you have borrowed too much already?  You are already in a position where you are struggling to meet the obligations of your current borrowing.  To consider borrowing even more is hardly the prudent decision.  

EmekaDuru1 said:

Why pay 67% when I could have less than 20% from a bank I have been with for over a decade? 

Because you have no choice.  You are now viewed as being high risk and you will not be able to borrow at low rates.  How long you have been with the bank is irrelevant.   
  

RandomUserID

EmekaDuru1 said:

True. But what are loans for? Are they not products and brigdes for creating finance?
You seem to miss the point that I feel discriminated against by the bank I have banked with for that long.
There is hardly any enterprising individual who doesn't need a loan but this type of discrimination empowers others better.
My outgoing is the problem here, the high cost of interest. Why pay 67% when I could have less than 20% from a bank I have been with for over a decade? 

Here's an idea. Start lending money. Better yet, just lend money to anyone who asks.  See how that works out for you.

You are not a victim, please stop playing the victim card.

The bank doesn't want to lend money to you.  That is nothing personal, it's just an algorithm that has decided that you don't fit their criteria.  The sooner you can accept the impersonality of lending the better.

Edi81

RandomUserID said:

The bank doesn't want to lend money to you.  That is nothing personal, it's just an algorithm that has decided that you don't fit their criteria.  The sooner you can accept the impersonality of lending the better.

The days of a bank manager who knows you and makes the decision are long gone. 

Statistical models that the banks spend millions of pounds developing make the decision. 

RandomUserID

Edi81 said:

RandomUserID said:

The bank doesn't want to lend money to you.  That is nothing personal, it's just an algorithm that has decided that you don't fit their criteria.  The sooner you can accept the impersonality of lending the better.

The days of a bank manager who knows you and makes the decision are long gone. 

Statistical models that the banks spend millions of pounds developing make the decision. 

If those are more profitable than a person sat in a branch easily swayed by emotion then hooray?

Plus it costs a lot less to say computer says no than looking through a briefcase full of information, that a bank manager is poorly equipped to understand in the first place.

I know an ex-Barclays branch manager who was in the job for a few decades. He's an idiot who has no idea how the financial system works.  You're probably better off with an algorithm.

TripleH

Have you tried snowballing your debt?

Focus on the card with the highest percentage interest rate (not necessarily highest amount), focus on paying that in full, once settled close the account.

Move onto the next one and pay that off.

As you clesr debts and reduce the interest you pay, you'll find you have more money to pay the other debts off quicker.

Bank loyalty sadly means nothing these days.

DCFC79

TripleH said:

Have you tried snowballing your debt?

Focus on the card with the highest percentage interest rate (not necessarily highest amount), focus on paying that in full, once settled close the account.

Move onto the next one and pay that off.

As you clesr debts and reduce the interest you pay, you'll find you have more money to pay the other debts off quicker.

Bank loyalty sadly means nothing these days.

You realise the OP made 2 posts and hasn't returned so wont reply.

molerat

DCFC79 said:

TripleH said:

Have you tried snowballing your debt?

Focus on the card with the highest percentage interest rate (not necessarily highest amount), focus on paying that in full, once settled close the account.

Move onto the next one and pay that off.

As you clesr debts and reduce the interest you pay, you'll find you have more money to pay the other debts off quicker.

Bank loyalty sadly means nothing these days.

You realise the OP made 2 posts and hasn't returned so wont reply.

And this thread is being pushed to the front by the faulty forum software making old, long dead threads the "latest post".

y3sitsm3

molerat said:

DCFC79 said:

TripleH said:

Have you tried snowballing your debt?

Focus on the card with the highest percentage interest rate (not necessarily highest amount), focus on paying that in full, once settled close the account.

Move onto the next one and pay that off.

As you clesr debts and reduce the interest you pay, you'll find you have more money to pay the other debts off quicker.

Bank loyalty sadly means nothing these days.

You realise the OP made 2 posts and hasn't returned so wont reply.

And this thread is being pushed to the front by the faulty forum software making old, long dead threads the "latest post".

It really likes October 21, doesn't it?

Although it has at least moved on from the 21st to the 31st.  So that's progress I guess.