Interest Rates on the up

[Deleted User]

It entirely depends on the issuer - some are base rate linked, some manually rise e.g. Zopa and others only on new applications. e.g. Rishi and I are both on 18.9% for our HSBC credit card but it's now at 23.9% for new customers

horsewithnoname

Ebe_Scrooge said:

MorningcoffeeIV said:

zathrasB5 said:

Martin mentioned something about not expecting Credit Card interest rates to go up too much as they were already so high.  

That's a fine theory, if you believe everyone still has lots of money and that the risk of non-payment hasn't gone up.

It's not really a case of having lots of money - just a case of being disciplined enough to not spend what you don't have.  Doesn't matter if you earn £5000 a year or £50 million a year - live within your means.  Spend more than you earn (whether on credit card or not) and there's only one possible outcome.

The thing is, if you have been living within your means, then rent goes up, utilities go up, food goes up, transport costs go up, in fact everything except your pay goes up, and there is a point where you can’t cut your expenses any further because they are out of your control. 

It’s not always that easy for everyone, and the less you have the harder it is. 

[Deleted User]

horsewithnoname said:

Ebe_Scrooge said:

MorningcoffeeIV said:

zathrasB5 said:

Martin mentioned something about not expecting Credit Card interest rates to go up too much as they were already so high.  

That's a fine theory, if you believe everyone still has lots of money and that the risk of non-payment hasn't gone up.

It's not really a case of having lots of money - just a case of being disciplined enough to not spend what you don't have.  Doesn't matter if you earn £5000 a year or £50 million a year - live within your means.  Spend more than you earn (whether on credit card or not) and there's only one possible outcome.

The thing is, if you have been living within your means, then rent goes up, utilities go up, food goes up, transport costs go up, in fact everything except your pay goes up, and there is a point where you can’t cut your expenses any further because they are out of your control. 

It’s not always that easy for everyone, and the less you have the harder it is. 

Some people had already cut their outgoings to bone; Ebe_Scrooge comment only holds water if they have some slack.

fergie_

Its also the irony of 'responsible' lending - risking is also getting stricter so its harder to get new cards as the rates go up.

[Deleted User]

fergie_ said:

Its also the irony of 'responsible' lending - risking is also getting stricter so its harder to get new cards as the rates go up.

That is not irony, that's literally doing what they are supposed to do - stops people running up debt they can't afford