Bank settling my PPI claim. Sending it to my IP

[Hippo]

Hi
I think that Banks should not be allowed to go over a certain amount of your actual income Example if you earn £20,000 a year then the most you should get is £2000 and no more than 2 cards per person to allow a balance transfer
If you have a bank loan then the same should apply you should not get a credit card and have a bank loan
Yes a card is needed fot travel and other online things etc But then maybe a card with a set limit of £500

I know they are out to make money and when you get your card they give you a new limit then another and another So once you are in the cycle of using a card you get stuck and kid your self you will pay it off next month its only a months salary its only 2 months salary its only 3 months salary and so on

Of course its your responsibilty but the banks should get a lot tougher in there lending as they are the ones who lose out and the genuine customers who pay there losses in higher bank charges

[kallis3]

That is never going to happen.

I cannot see the problem with having multiple lines of credit if you can afford to pay them.

We are all genuine customers regardless of whether or not we fall into the debt trap - sometimes it is not of our own making.

[Skippy]

I don't see how you can infer that people who fall into debt aren't genuine customers Hippo. While the banks should tighten up, people have to take responsibility for their own actions.

Are you saying that someone who has a credit card shouldn't be allowed a mortgage or car finance?

[kallis3]

These days as well when your credit limit is increased you are at liberty to refuse it. Similarly with an increase in interest rate - you are liberty to say that you will carry on with the old one even though you may not be able to use it anymore.

Sometimes, and I do apologise to those who are in trouble through no fault of their own, it is our own fault that we are in the mess.

We are all genuine customers though.

[Broke of London]

I don't want to put words in Hippo's mouth but I think he/she's referring to genuine customers as those who aren't insolvent and are penalised for our losses through higher interest rates on their borrowings. Not suggesting that we aren't customers.

[kallis3]

We are all genuine customers - the fact that we have not been able to pay our debts does not make us anything else.

The interest rates would probably be the same regardless.

[Skippy]

Saying we're not genuine customers make us sound like fraudsters as far as I'm concerned!

[lem]

I think what you also have to remember though is when you take out a new credit card with a low interest rate and low minimum payments that then shoot up after the offer period ends, these are just MINIMUM payments!, yes I know they have sent a lot of people over the edge, but tell me, during that 6 month period you were paying lower payments, you weren't 'managing' your accounts at all, you were just treading water, the minimum payment during the offer period only just covers the interest applied and you are getting nowhere to paying off any actual debt, on a credit card debt of around £3k if you only ever pay 3% of the balance each month and the interest rate is about 19%, it would take you about 30 years just to pay that off.

So, whilst hiking interest rates and minimum payments may have actually pushed many of us over the edge, actually, you know what? my creditors did me a favour, instead of us being stuck with making small payments on our enormous debt and never realistically paying it off, we now have an endpoint no matter how hard it becomes over the next few years.

no one is going to lend you money for free, and we all signed credit agreements which clearly stated interest rates were variable and could change, whilst I am no fan of the banks and their practices, especially with how they deal with you when you ask for help, they have done nothing not in line with the agreements we all signed, whether we think they are fair or not and whilst I am frustrated and annoyed that we have had to go down this route, I feel it is a fair price to pay for becoming debt free in 5 years rather than carrying on for the rest of our lives and still owing thousands

[kallis3]

Quite agree Lem.

The other thing I will say is that you knew that the low rate was only for a limited time and that it would go up by a fair bit at the end.

In reply to Hippo as well with the comment about genuine customers - the ones who manage their accounts well don't get bank charges - it's us who pay those.

[daytona555]

Hi, this is in response to Lems post. You're right about the interest on any money owed on a credit card and an IVA at the very least gives you a time frame for closure on your debt. The only problem the debtor has with an IVA is staying in employment for the next five years, making regular payments and have the ability to make all the ends meet during that time. My IVA is in the final phase, I have made my last payments and just waiting for the paperwork to come through. Lem, at 55 months to end your IVA you have a long way to go. In difficult economic times I hope you make it. Kind regards and I do understand your post.

[Skippy]

But surely the same applies to those of us not in an IVA - if I don't stay in employment I won't be able to pay the bills. I just viewed my IPA payments as another bill that had to be paid.

[kallis3]

Quite agree Skip. That"s how I view mine as well

[Skippy]

This might sound strange but I worried about things less when I was paying my IPA - I knew at some point I would be getting some extra money, but now I know that what I've got isn't going to increase!