General Discussion about limit slashing on overdrafts and credit cards

moneyaspie2024

I am concerned that banks and financial are using the cost of living crisis as an excuse to slash PCA overdraft limits or this could in turn cause financial hardship to and financial damage to already struggling families across the UK. 

Although banks are businesses and are entitled to do this, they are also expected to act fairly and reasonably, and in regard to the persons circumstances, someone in the deep end like this could tip someone over the edge in an already very bleak situation and is morally questionable, first of all many of these customers use overdrafts as a buffer in order to pay unexpected direct debits or to tide them over until payday, they are not living in their overdrafts and don’t meet the threshold of a frequent user. People will argue on here that no one has a right to an overdraft or any other form of credit, while being totally dismissive of the fact that banks also have the right not to provide them in the first instance. 

If banks don’t want people overdrawn or to use overdrafts then they should simply withdraw the possibility of arranged overdrafts and simply not offer them anymore, like Triodos bank recently did, and improve other forms of lending like credit cards and personal loans. 

Hoenir

Some would say what cost of living crisis. 

moneyaspie2024

Hoenir said:

Some would say what cost of living crisis. 

Mabey people who shop at Waitrose or booths 😂

GeoffTF

I have read about credit limits being cut on here and I thought that I might be next for the chop. I got a letter from Barclaycard a couple of days ago. They have just increased mine.

EssexExile

GeoffTF said:

I have read about credit limits being cut on here and I thought that I might be next for the chop. I got a letter from Barclaycard a couple of days ago. They have just increased mine.

Ah, you must have loads of money, they're always happy to lend to people with loads of money.

moneyaspie2024

GeoffTF said:

I have read about credit limits being cut on here and I thought that I might be next for the chop. I got a letter from Barclaycard a couple of days ago. They have just increased mine.

Halifax cut my credit limit from 3k to £500 a few weeks ago on my world elite card, however they agreed to reinstate the limit on appeal. 

moneyaspie2024

GeoffTF said:

I have read about credit limits being cut on here and I thought that I might be next for the chop. I got a letter from Barclaycard a couple of days ago. They have just increased mine.

I do feel though that the unscrupulous manner in the way it’s being done is a knee jerk reaction to the cost of living crisis and also due to COVID, and it mainly being targeted at under 30k earners. 

It’s simply a form of financial exclusion dressed up as responsible lending via the back door. 

Hoenir

moneyaspie2024 said:

Hoenir said:

Some would say what cost of living crisis. 

Mabey people who shop at Waitrose or booths 😂

Personal money management alas is a skill that has been lost over recent generations. Want it now. Pay later. Springs to mind. 

moneyaspie2024

Hoenir said:

moneyaspie2024 said:

Hoenir said:

Some would say what cost of living crisis. 

Mabey people who shop at Waitrose or booths 😂

Personal money management alas is a skill that has been lost over recent generations. Want it now. Pay later. Springs to mind. 

You are most certainly correct, I’m 20k in debt and I and if I stick to the plan I’ll be debt free when I’m 34, which I am doing via snowballing ect. 

Hoenir

moneyaspie2024 said:

Hoenir said:

moneyaspie2024 said:

Hoenir said:

Some would say what cost of living crisis. 

Mabey people who shop at Waitrose or booths 😂

Personal money management alas is a skill that has been lost over recent generations. Want it now. Pay later. Springs to mind. 

You are most certainly correct, I’m 20k in debt and I and if I stick to the plan I’ll be debt free when I’m 34, which I am doing via snowballing ect. 

If you don't stick to the plan and default. Then it's other people that will bear the cost. Finance companies being forced to grant credit in a more responsible way, Is only inching forward at a slow pace. So as not to cause major ruptions. 

moneyaspie2024

Hoenir said:

If you don't stick to the plan and default. Then it's other people that will bear the cost. Finance companies being forced to grant credit in a more responsible way, Is only inching forward at a slow pace. So as not to cause major ruptions. 

I don’t think I will default, I’m paying nearly 1k a month off all my debts, people default because they think it’s a fresh start when it’s actually not, I’m making an effort to try and pay off my debts, even if it means sacrificing other things, like holidays ect.