Hi Not really a Question just an idea

[Hippo]

Hi
Not really a Question just an idea With the huge problems with Credit and people being given more than they can reasonably repay amd more likely tempted to use it I was thinking that maybe there should be some new credit laws brought in so that the most you would be allowed per card is £2000 and no more than 2 Card per household The same with a bank loan should have a set limit that cant be increased and no more than half a years salary and minus any credit card debts so people would not get into difficulties and spiraling interest charges

With a lower interest rate and a fixed repayment every month I think it would stop a lot of people going over budget as when you get your card maxed out the banks just raise the limit and pretty much know you are going to be tempted as they can see what you have been using the card for

[MelanieGiles]

Banks make their money out of lending money - they are unlikely to want to see credit limits restricted, and accept that an element of that borrowed will not ultimately be repaid.

[kallis3]

Totally agree Mel - it's never likely to happen as the good payers will probably far outweigh those of us who are struggling.

[Shining]

hi Hippo, in an ideal world maybe but doubt it would work in reality, people lose their job or get made redundant all the time. Over spending isn't always responsible for insolvent people, I lived within my means for many years when my husband was a high paid worker, he got made redundant and instead of changing my lifestyle to suit the salary I continued to live as I was so ended up in an IVA. Lesson learnt for me and I needed to learn this lesson or when would I have stopped. Until sourcing my IVA I had not missed a payment to creditors.

[andrea1968]

Our iva was due to my becoming ill and giving up work, so if our circumstances hadnt changed we would still be solvent.


We had two good incomes coming in and our borrowing reflected this, losing one was our downfall!!!

So I wouldnt think any restrictions on credit balances would stop people finding other ways to borrow, this could have the opposite effect of what has been suggested here as it may cause borrowers to turn to high interest loans/no credit check borrowing, which in turn could cause more severe debt in the long term.

[4kidsnocash]

I would agree that something should be done, I also agree that the banks would not go for the suggested plan. Perhaps if they did more stringent checks before handing out loans etc the ever decreasing circles that we find ourselves in would perhaps disappear?

[howard07]

I would personally outlaw credit cards. I have managed for nearly six years without one, and will continue to manage, OK so if i go to America again i will probably need one, thats easily fixed I wont go to America. There is a local store that wont accept my Co-op debit card, so i go somewhere that does, there loss not mine. There is no need whatsoever to have a credit card.

regards.........Howard

[kallis3]

I wouldn't outlaw credit cards at all - I just overspent on mine and it is totally down to me.

I will go to America in the future - with a credit card! Difference is that I will be careful with the spending!

[andrea1968]

Our problem wasnt credit cards, we only had two with small balances on.
We found the bank was always raising our limit on the overdraft(without us even asking) and the interest wasnt high on this.
Also we were bombarded with letters offering us top-up loans from our existing lenders,but the real sticking point for us was when Northern Rock lent us the value of our house,plus 25% of the value on top-even though we already had a secured loan!!!
When you pay well and earn well there seems to be a never-ending line of credit out there!!!
But by God do they change their tunes when the s**t hits the fan!!!

[frost]

Hi Our problem started when I had my son and got sick forcing me to give up my well paid job and going onto incapacity benefit and as much as we cut back, a baby is expensive. I became a partner in a business with my sister but unfortunately this failed in March this year putting all business debt onto me which lead to the IVA. I really think at the end of the IVA I don't want credit cards or anything just a debt free life.

[back on track]

i too had credit thrown at me as fast as i could use it.
going against the grain that we pay back as much as we can to creditors in an iva,i say they too must shoulder the blame for being incompetant in running there buisness.
my outlook in this iva is i pay a reasonable amount back of my debts and the creditors get a lesson in how to run a buisness properly and take a hit for being silly in the lending criteria they used to use.
the iva route is hard on both parties but its fair

[kallis3]

Our bank refused to raise the overdraft limit - as soon as we were paid we were immediately overdrawn again!

I take the blame totally for our debts - I was the one who wanted everything immediately and got the loans, the store cards, the credit cards and at one point I was pleading with the bloke at Direct Line to give us a new loan (we already had one with them)which he eventually did.

I've lied about income and expenditure to various companies just so I could get money.

Never again will I do that!