So much for the credit crunch!

vet8

My husband and I (that sounds very royal) have large debts, we have a huge mortgage and several credit card debts. We pay off the minimum each month, but the chances of us ever paying off the total balance without winning the lottery is zero.

Despite this we are INNUNDATED with offers of more credit. We receive something in the post every week, offering balance transfers, increased credit limits, credit card cheques etc. etc.

Every single month we both get a separate letter from Barclayloan trying to get us to take out a loan.

We resist all of these offers, we don't need any more debt, but I am amazed at how much we are offered. I realise that we are probably good news to the companies as we pay interest every month and we always pay something on time, but I thought they were being more cagey these days about who they offered money to.

We have about £150,000 credit limit between us in total (I must add that we don't use anywhere near the total amount), but I think it is scandalous that companies virtually force this credit down your throat. I think it is totally your own fault if you get into debt, but it is easy to see how weak people do, because they are offered so much money so freely.

NickX

You sound like exactly the sort of customer the Credit Card Companies are looking for.

You pay back in time without incurring late payments or default markers, however you pay them interest. So, by having you as a customer the chances are that they will make lots of lovely profits.

If you paid off in full, they wouldn't be so keen as there is no interest to make from you. If you paid late or didn't make your minimum payments then they would see you as too risky.

YorkshireBoy

vet8 wrote: »

We resist all of these offers

Even the 0% ones?...bearing in mind...

...we pay interest every month...

Sounds to me like you should be giving in to temptation.

vet8

No, I don't resist all of them. I frequently take out 0% offers and life of balance low rate transfer offers and transfer my balance there.

What I was trying to say is that I find it frightening at just HOW MUCH money we are offered and how frequently. I thought they were tightening up on offering credit. If we defaulted, the banks would lose LOADS.
:eek:

NickX

In a way you are similar to a Stoozer.

The Stoozers go for big Credit Limits and max out the cards to they can invest the funds to make a profit. Then we make minimum payments only for the duration of the promotional period so as to maximize investment interest. At the end of the promotional period the card is then paid off in full so as to avoid having to pay interest.

However, to the Credit Card companies Stoozers look like good customers because they pay on time, but they only make minimum payments hence a good chance of making money from them (although actually they don't as the stoozer pays off before the interest kicks in). Also Stoozers tend to have excellent credit histories.

Personally I have limits totalling £70k much of which I've stoozed, and on the stoozing board there is a poster who has £250k and invests in buy to let properties.:j

CannyJock

vet8 wrote: »

No, I don't resist all of them. I frequently take out 0% offers and life of balance low rate transfer offers and transfer my balance there.

What I was trying to say is that I find it frightening at just HOW MUCH money we are offered and how frequently. I thought they were tightening up on offering credit. If we defaulted, the banks would lose LOADS.
:eek:

The marketing departments that send out this junk aren't always the ones that actually approve the cards.

Having debt makes you a potential candidate for more, but getting the junk doesn't guarantee a successful application if you did decide to take them up on it.

Keep going for the 0% offers though