View Full Version : encouraging debt
Billy Boy
19-Dec-06, 21:38
My wife has just recieved a call from her catalogue offering her to spread any payments she has over an extra 104 weeks at a fixed rate per month since its christmas, Some folks might jump at such an offer at this time of year.
but as with everything there's a catch, the APR is only 29.9% so she was informed, its a disgrace the way they try to encourage some to get deeper into debt by letting them think they are doing them a favour[disgust]
mums angels
19-Dec-06, 21:48
My catalougue upped my credit by £900 2 weeks ago, its alwful it was so tempting but my hubby hates credit cards and catalouges, his theroy is if you can't pay for it straight up...don't get it or save up. Shame its not that easy
Hubby says if i used any of the credit he'd kill me for xmas:eek:
i had this a couple of months ago, offering to lower my minimum monthly payment and i thought yes that be good till he told me about the 29% apr. no way, i hung up.
last year i got a renewal credit card through and had over 7k credit on. i am a stay at home mum so dont earn and i aint used a credit card in a few years. i could have run up a lot of debt with out being able to pay for it.
its no wonder some of us get into debt when these companies are basically throwing credit at us.
i have a credit card, and my limit is jusy over 1k ( i never spend more than £250 per month)
the ONLY reason i got a credit card is so that i have credit so i can get a morgage in future. scary though how easy it is to get into debt, i am so proud to not have any debts
mums angels
19-Dec-06, 23:51
i have a credit card, and my limit is jusy over 1k ( i never spend more than £250 per month)
the ONLY reason i got a credit card is so that i have credit so i can get a morgage in future. scary though how easy it is to get into debt, i am so proud to not have any debts
Us too, apart from the mortgage, we have no other debts at the moment!!:eek:
Jeemag_USA
19-Dec-06, 23:59
Unfortunately the way it is in the UK and here in the USA is you need to go into debt to build credit, its bizzarre. One of the reasons I left the Uk was because it seemed no matter where I turned or how much money I made someone was trying to get it off me. And I have gotten myself into the same mess over here. Its the way "The Man" wants you to be, forever held by the short and curlies. Its a sad fact of life and a sad reflection on society.
I chuckle to myself every time I hear the word Freedom :cool:
Unfortunately the way it is in the UK and here in the USA is you need to go into debt to build credit, its bizzarre. One of the reasons I left the Uk was because it seemed no matter where I turned or how much money I made someone was trying to get it off me. And I have gotten myself into the same mess over here. Its the way "The Man" wants you to be, forever held by the short and curlies. Its a sad fact of life and a sad reflection on society.
I chuckle to myself every time I hear the word Freedom :cool:
Why on earth would you want build credit u should always live within your means i have no debt what so ever ive got a credit card just incase of emergency i very rarley use it if want to buy anything i save up for it first
I think its a disgrace the way some companies can get away with offering crediit the way they do. between catalogues, credit card companies and all the adverts on the tv. We are very lucky that we are both in good jobs but think about those not so lucky at this time of year. its the more vulnerable that will be tempted but unfortunately they are perhaps the ones who can least afford the high interest rates. i personally feel adverts and mail shots for loans/credit cards etc should be banned.
Weve been offered all sorts of loans via the letterbox just lately , i might add i havent taken any of them up on there offers ! jan x
A number of years ago I was in a bit of difficulty with a credit card. I contacted the company to arrange a lower payment plan. About a month later they sent me a new card with a hugely increased credit limit! I Think it was an extra £2000. Crazy.
footie chick
20-Dec-06, 12:35
Last October and this October I got a cheque throught the post for £1000.00 in my name when you read the small print they are charging 29.9% apr how many people actually fall for this nasty trick! How are companys allowed to do this? Its one thing to offer the money but how many people are tempted when they actually have the cheque in their hand. [evil] .
Jeemag_USA
20-Dec-06, 14:03
Why on earth would you want build credit u should always live within your means i have no debt what so ever ive got a credit card just incase of emergency i very rarley use it if want to buy anything i save up for it first
The sad fact of life over here Eddie is you cannot get a mortgage without a credit score. If you have no credit whatsoever your classed as unknown and you won't even get a cellphone without paying a huge deposit, first time I wanted to get a cellphone they wanted $250 up front so I told them where to shove it. it took me the best part of 2 years to build credit to get a mortgage, and my credit is now four years old and good and they still consider it too new to be trusted in some places, my own bank wouldn't even give me a loan.
if I wanted to save up for my house before I bought it how many years would it take me to save $180,000
jinglejangle
20-Dec-06, 14:30
Why on earth would you want build credit u should always live within your means i have no debt what so ever ive got a credit card just incase of emergency i very rarley use it if want to buy anything i save up for it first
we also incurred this problem - i had a credit card but rarely used it but also had a couple of club books but always cleared the amount due at the end of each month. however, my husband believes in saving up for what he wants - never had a credit card or any club books. when it came to getting the mortgage it was difficult for him as he didn't have a credit scoring. in the end we went to the bank that he saved with and did get one but at a higher interest rate - strange :eek:
Jeemag_USA
20-Dec-06, 16:15
When I got my first vehicle here I had no credit scoring and I had to pay 21.5% interest, now with my score built up I can get payments with only 9.5% interest.
When I got my first vehicle here I had no credit scoring and I had to pay 21.5% interest, now with my score built up I can get payments with only 9.5% interest.
Thats pure crazy so why do u not just use the credit card to buy your weekly things and dont touch your wages and square the credit card of buy the end of the month to escape interest would that not build your credit ratings up that way without cost you anything if you know what i mean.
The sad fact of life over here Eddie is you cannot get a mortgage without a credit score. If you have no credit whatsoever your classed as unknown and you won't even get a cellphone without paying a huge deposit, first time I wanted to get a cellphone they wanted $250 up front so I told them where to shove it. it took me the best part of 2 years to build credit to get a mortgage, and my credit is now four years old and good and they still consider it too new to be trusted in some places, my own bank wouldn't even give me a loan.
if I wanted to save up for my house before I bought it how many years would it take me to save $180,000
Its crazy system i would have thought it would be in the interest of the banks to lending working people a morgage loan because at the end of day they lose nothin if you make your payments on time they gain if you lose your job and cant make your payments they also gain because they can sell the hows make profit on it because house prices continually rise and screw u at the same time
Its actually a sad world we live in when u think about it the one basic thing in life we all need is a home and u spend most of your life struggling to pay it off and its the one most essentional thing in life that we all need it it should be the cheapest thing buy.
Why on earth would you want build credit u should always live within your means i have no debt what so ever ive got a credit card just incase of emergency i very rarley use it if want to buy anything i save up for it first
How about if you want to buy a house? You have to have a credit history to get a mortgage. No credit history, no mortgage or a rate you cannot comport!
Ju: learn how to read a thread to the end before posting! (Sorry for the repitition)
rockchick
20-Dec-06, 20:38
Thats pure crazy so why do u not just use the credit card to buy your weekly things and dont touch your wages and square the credit card of buy the end of the month to escape interest would that not build your credit ratings up that way without cost you anything if you know what i mean.
That's a good idea if you're disciplined, but I can see two problems with this idea: (1) it gets you in the habit of buying things on credit, instead of with hard-earned cash (2) it's much easier to lose track of how much you're spending with a credit card!
I pay my credit card off every month, so that I don't pay interest, but credit card companies don't like this as they don't make much money off you, so they haven't upped my limit for a long time...it's only when you miss a payment, and the companies realize that here is a lovely morsel that they can profit off of, do they increase your level of temptation by increasing your limit.
How about if you want to buy a house? You have to have a credit history to get a mortgage. No credit history, no mortgage or a rate you cannot comport!
Ju: learn how to read a thread to the end before posting! (Sorry for the repitition)
Well as for repitition i couldnt care less about i think its prity stupid to give someone good or bad rep points for expressing there opinion or replying to someone view with a sarcastic reply which u have done.
I live in uk i based my opinion on how it is here all u have to do here is prove to the bank you are in full time perminent work prove how much you earn by giving them payslips and prove were you been living for the last 5 years and that your not up to your eyes in debt and getting a morgage loan is easy is that here in the uk u shop around to get the best interest rate
Well as for repitition i couldnt care less about i think its prity stupid to give someone good or bad rep points for expressing there opinion or replying to someone view with a sarcastic reply which u have done.
I live in uk i based my opinion on how it is here all u have to do here is prove to the bank you are in full time perminent work prove how much you earn by giving them payslips and prove were you been living for the last 5 years and that your not up to your eyes in debt and getting a morgage loan is easy is that here in the uk u shop around to get the best interest rate
Excuse me? I have given you no reputation points at all, be they positive or negative. I have just bought a house and had to build a credit history before being given a loan, even though I am in permanent full time employment in the UK. Please if you have a problem with my replies, you can send me a private message before imagining some kind of personal attack.
j4bberw0ck
22-Dec-06, 10:33
Its crazy system i would have thought it would be in the interest of the banks to lending working people a morgage loan because at the end of day they lose nothin if you make your payments on time they gain if you lose your job and cant make your payments they also gain because they can sell the hows make profit on it because house prices continually rise and screw u at the same time
Yes, the moon's made of cream cheese, too. Banks and mortgage lenders get bad publicity when they force-sell houses. Anyone with a mortgage should consider insuring against the loss of their job. More fool you if you don't. And if you have a house force-sold by the mortgage lender, they can only take what they're owed so they make no profit.
Its actually a sad world we live in when u think about it the one basic thing in life we all need is a home and u spend most of your life struggling to pay it off and its the one most essentional thing in life that we all need it it should be the cheapest thing buy.
Economics works against you on that one. Essential = demand = high price. Also that house owners in the benighted country have come to believe that houses are an investment, so it's in their interests to chase prices higher.
The way credit scoring works here on mortgages (generally) is that if you have a credit record, you get points which are directly proportional to the "quality" of your credit record. If you don't have a credit record, you get a lower number of points, but on its own it won't stop you getting a mortgage.
Oh, and as for encouraging debt, yes, I'd agree that banks and building societies do just that. It's criminal that the minimum repayment on credit cards has been reduced by many banks to 2% per month; it means that at the minimum repayment, you're not making any impact on capital, which keeps the average balance higher for longer, which is what they need to make money.
On the other hand, no matter how hard I look, I can find no evidence at all that any bank or lender sends the heavy mob round to force people to use their credit limits or take loans. No one forces people to drink and drive. No one forces people to use tobacco. No one forces people to spend to the limit. Get a grip, people, and take responsibility.
We are also very lucky neither of us has a credit card we both work and have no debt not even xmas debt. We only buy what we can afford and if we want something special or a treat we save up.
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