Where the Blame lies? (bit of a rant about our credit happy Culture)

IWantToBeFree_2

I don't blame anyone but myself for the debt that I am in, however, I do think that lenders are irresponsible, or at least were when I turned 18, when they were throwing credit at me left right and centre.

Yes, I could have refused, yes, I wish I had refused, but it still riles me that everywhere you turn you have credit thrown at you almost without second thought.

I go to the post office regulary because I ebay quite a lot, and everytime I go, I pay on my cashback credit card, which leads them to asking if I use it a lot, and whether I want another one, one of theirs. I go to post my parcels, not to have the spanish inquisition over whether I want credit or not. That I class as irresponsible and I don't think that it should be allowed. They clearly have targets to meet and ask every person in the queue, even the ones drawing their benefits etc...

When I go shopping, I am always asked if I want to save 15% by opening a store card, what they don't tell you is that whilst you save 15% on the day you open, you pay 29.9% (or thereabouts) APR interest on the balance if you don't pay before the statement comes in.... I fell into this trap when I was 18, and not financially savvy, and its obvious that thousands do everyday.

I think people should be taught about credit at school, and the pitfalls of it, because I think its clear, from the problems that people get into, that we are a poorly educated society when it comes to credit and that more needs to be done at a younger age.

I also think that restrictions should be placed on lenders and their tactics to get you hoiked in.

bank_of_slate

IGNORE THIS IDIOT
...reported
...Linda xx

Toffee_Penny

I think blame can be found in both parties; irresponsible lender, irresponsible spender! I think I have just been greedy and not really gave much thought about what I was doing when ordering items from a catalogue on a buy now pay later basis or when I took cash out on a credit card to put a deposit down for a holiday.

As someone has already mentioned when you walk into shops, the offer of a store card is there, if you pay your credit card bill in full at the end of the month you can guarantee a 'congratulations your limit has been increased' letter soon afterwards.

I just wish they'd put a limit on me much sooner and said 'no more'. The credit card company must have realised I was only making the minimum payment, the bank must have seen how much I had coming in every month, yet the credit card company increased my limit and the bank gave me an overdraft far more than my wages each month.

Its all down to the feel good factor; who gave a second thought when you could make the payments? Its only now when we all feel the pinch with the increase in tax, petrol, food, gas etc that we reflect and wish we'd never had taken them up on their offers.

Bayblue

TBH I don't blame the credit card companies or banks for my debt, it's all down to me and my money mismanagement and burying my head in the sand (for a time).

Yeah, it's true that credit may well be more easily available to people but that doesn't meAn that we have to take them up on the offer. The banks or card companies don't know my spending patterns, my household budget or how many other commitments I have, so it's down to me to make sure that I can handle the repayments, not them.

True, they may have made mistakes on occasion but financial institutions are a necessity in a developed society and indeed they have enabled many millions to own their own homes and make progress in their businesses and lives. So making them the 'big bad wolves' just because I got myself into debt would be wrong IMO.

And no, I don't work for a bank or similar... but come to think of it many people do and I'm sure that most are as are decent and kind as people in other jobs.

Ames

I think it's a bit of both, but some lenders are just irresponsible - I told egg that I was having trouble and had an appointment with cccs to sort things out and they upped my limit! By then I knew not to spend so the increase just went on their charges, but it could have reversed my lbm and sent me even further down. I get really annoyed that everywhere I go I get offered cards, I once said to a seller that there's no way I could pass the checks because of my record and they said I should try anyway because it could be with a different cra. I know he's on commission but is it really so unusual for people to not want credit?

I also agree with the keeping up with people around you - I'm on benefits and used to feel the pressure when hanging around people who could afford £115 handbags, until I noticed that they were always on credit cards...

Boggles1234

I don;t blame anyone besides myself.

Yes the banks offer cheap and easy credit but no one made me borrow it. No one made me spend it and no one made me get more credit.

I count myself as fairly intelligent so I should have, and if I am honest I did, know what I was doing and why I shouldn't be spending like that.

EmptyPurse

I think the problem's not so much cheap and easy credit as irresponsible credit. In my mid twenties I didn't have the first clue about budgeting properly or how to manage my finances. I'd go to the cash machine, see that I had £200 in my account and think "ok, I can afford that book/meal out/decorative cushion". I didn't realise that the balance on the screen didn't reflect the money I *actually* had. So first I went into my overdraft without realising. Yes, that was my fault due to my financial incompetence. But then the bank let me carry on spending way after I went past my overdraft limit - I hit double the limit before they sent a letter (second class) telling me that I was over the limit. I can't think why they didn't put an immediate block on the account as soon as I reached the limit. </p>

And then there was the time I popped into the bank during my lunch break to deposit a cheque and came out with a massive consolidation loan. The queue for the tellers was very long and so a financial adviser offered to pay the cheque in at the information desk. When she checked my account details she offered me a financial review. Great, I thought, I could really do with some sound advice about where I'm going wrong even though I haven't really got the time. So I sat down and answered her questions about my monthly spending and she drew up a budget plan for me. It was great - I had much more money than I thought. Then she suggested I take out a loan. Based on her budget I thought "hey, I can easily afford this loan *and* will have extra money to play with". Several months later the sums just weren't adding up and I started to put more stuff on the cards. Do you know why? Because the bloody stupid woman who had drawn up my financial budget had forgotten to include any spending on food, transport and a couple of other essential monthly spends.

Now you could argue that I should have spotted that. But I'd rushed into the bank during my lunch break and was anxious about getting back to the office on time. She knew that and yet still thought it was a good time to sign me up for a hefty loan - not just to cover my debts but a bit of extra money "for fun". How is that responsible???? The budget she drew up was wrong, the advice she gave me was inaccurate and she persuaded me to take on even more debt for no particular reason. Yes, I'm an irresponsible, ill disciplined and financially illiterate spender and I take responsibility for my debts. But banks shouldn't be lending to people like me - they should be far firmer about overdraft limits and should never sell loans to people who don't have time to think through the implications. It's irresponsbile in the extreme.

sxw

Ames wrote: »

I think it's a bit of both, but some lenders are just irresponsible - I told egg that I was having trouble and had an appointment with cccs to sort things out and they upped my limit! By then I knew not to spend so the increase just went on their charges, but it could have reversed my lbm and sent me even further down. I get really annoyed that everywhere I go I get offered cards, I once said to a seller that there's no way I could pass the checks because of my record and they said I should try anyway because it could be with a different cra. I know he's on commission but is it really so unusual for people to not want credit?

I also agree with the keeping up with people around you - I'm on benefits and used to feel the pressure when hanging around people who could afford £115 handbags, until I noticed that they were always on credit cards...

Similar thing happened to me I asked our mortage company for a payment break and they said no but offered me a loan for £4k there and then!

Bayblue

EmptyPurse wrote: »

I think the problem's not so much cheap and easy credit as irresponsible credit. In my mid twenties I didn't have the first clue about budgeting properly or how to manage my finances. I'd go to the cash machine, see that I had £200 in my account and think "ok, I can afford that book/meal out/decorative cushion". I didn't realise that the balance on the screen didn't reflect the money I *actually* had. So first I went into my overdraft without realising. Yes, that was my fault due to my financial incompetence. But then the bank let me carry on spending way after I went past my overdraft limit - I hit double the limit before they sent a letter (second class) telling me that I was over the limit. I can't think why they didn't put an immediate block on the account as soon as I reached the limit. </p>

And then there was the time I popped into the bank during my lunch break to deposit a cheque and came out with a massive consolidation loan. The queue for the tellers was very long and so a financial adviser offered to pay the cheque in at the information desk. When she checked my account details she offered me a financial review. Great, I thought, I could really do with some sound advice about where I'm going wrong even though I haven't really got the time. So I sat down and answered her questions about my monthly spending and she drew up a budget plan for me. It was great - I had much more money than I thought. Then she suggested I take out a loan. Based on her budget I thought "hey, I can easily afford this loan *and* will have extra money to play with". Several months later the sums just weren't adding up and I started to put more stuff on the cards. Do you know why? Because the bloody stupid woman who had drawn up my financial budget had forgotten to include any spending on food, transport and a couple of other essential monthly spends.

Now you could argue that I should have spotted that. But I'd rushed into the bank during my lunch break and was anxious about getting back to the office on time. She knew that and yet still thought it was a good time to sign me up for a hefty loan - not just to cover my debts but a bit of extra money "for fun". How is that responsible???? The budget she drew up was wrong, the advice she gave me was inaccurate and she persuaded me to take on even more debt for no particular reason. Yes, I'm an irresponsible, ill disciplined and financially illiterate spender and I take responsibility for my debts. But banks shouldn't be lending to people like me - they should be far firmer about overdraft limits and should never sell loans to people who don't have time to think through the implications. It's irresponsible in the extreme.

I see what you are saying EmptyPurse, and I definitely think that banks should be responsible ans sensible in their lending but still, at the same time they are a business that needs to make a profit. To do that these days they sell things- why shouldn't they 'lend to people like you'? Surely if your credit rating had been bad then you shouldn't have been accepted for the loan and whilst I do sympathise it also wasn't their job to decide whether you had 'time to think through the implications'- that's up to you.

It seems like everywhere we go these days people are trying to sell something. We get stopped in the street and even badgered at home by phone calls and junk mail, all businesses are in on it- the banks are no different. Yes, there might be social pressures for instance I still get funny looks when people find out I don't own a washing machine and didn't run a car for years but surely the ultimate responsibility for saying 'no thank you' and looking after our money has got to remain with the individual. Otherwise, we might all just as well hand all of our wages over to the government.

You also raise another very interesting and important issue. Young people often start work ill-equipped to deal with earning money for the first time. There should be much more taught in schools on money management and finances IMO.

jak

I am responsible for my debts myself..although I have to say, I couldn't have managed on what I earned at the time I ran them up and to be honest I was a bit seduced by the banks offer of a credit card.
However, I feel very strongly that I had no money mnagement skills when I left home. My parents didn't really advise me. My mum's only money advice was 'you never need to spend more than £10 a week, I never did'! Hmmmmmm! Not very helpful when rent is £50pw!
I feel that educationally there is a lot that can be done to create a wealthier nation and I tell you one thing...When I have my baby he'll know as soon as he is able to understand, the implications of 1. budget and 2. savings! I'm really hoping to teach him how to live financially responsibly. And if he chooses not to at some point in the future then that's his choice and I will have done what I can.
Anyway, my point is that although I can't blame the bank for lending me money, I feel I wasn't necessarily given the right financial tools with which to live. I can safely say, however, that I have learn't the HARD way and that's one lesson I will NEVER forget!!!
J
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