What the despatchers programmes said last night

[Skipper]

It was a great piece of journalism timed perfectly - made it clear how we get into debt.In a sentence -"Ignorance and clever targetting and marketing of credit by Banks and stores"

The programme makers didn't blame no one for the debt problem...

Key points:

Manchester -Debt capital of the UK

APR - it needed a maths prof' to explain what compound interest is. This is what lands you the BR or IVA spot eventually -interest charge on interest based on borrowing. Over time this is what tears up your credit hopes.

Marketing -'people here and myself would be called "REVOLVERS" - suckers to credit in a simple pun. We are targetted with offers after offers and the credit limit raises and raises. This grp are considered to be the Banks Best customers. They love us - till you day you are proposing BR or IVA.

Storecards - Staff failed to esplain the interest rate as they didn't understand themselves.

Credit checking - yes , the banks do checks -the more default they see the less you get. However the programme makers set up some stooges to go the store to get as much credit as possible. One lass got 5K in a day doing part time acting work and earned less than 6K a year.But has a good credit record

The irony of this whole thing which I picked up was that for the economy is do well, the public need to spend. If they don't spent as they aren't now, the economy slows down and that is bad for the economy. So if that means spending credit then it would have to be....
so we have been doing our bit for the economy....NO MORE!

Unlike the Saudies or other G7 wealthy nations who make money by dealing with raw materials - Diamonds, Brent crude Oil or Manufacturing - the wealth of the UK is built on public credit spending....and property speculation(30% over valued)...leading to what is about to come.....

I'll drink to that. Merry xmas

"Always think outside the box"

[mikebdomain]

I did see the program Skipper and I thought it very interesting - your post sums it up very well.

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[debbiw]

I watched the program Skipper. It was a real eye opener. I hope people are more aware now on how easy it is to get yourself into debt.

[Martin2011]

I could kick myself for missing it, but will keep an eye out for the innevitable repreat...Revolvers eh, nice to know it wasn't all for nothing, all that borrowing propping up an economy....

So Skipper, your last cryptic sentance, re 'what's to come'... is this a reference to the likely devaluation in the housing market?

Martin

[ray_a]

Thanks for the report!

Amazing that the economy has to borrow to do well! I thought a healthy economy is where people produce goods or provide services to people who have funds to buy them.

Borrowing is for acquiring major capital expenditure such as houses and cars!

[marsha1]

I watched that programme last night. I was amazed when one of the presenters explained that 500.00 taken out on a cc could take up to 36years to pay off, if you only made the minimum payment each month. That scared me sooo much. The debt I had 16.500, crikey I would have gone to my grave owing it.!!!!

[beresford]

I was absolutely appalled at the fact that one girl could obtain just as much credit in one day as she would earn in a year. She earned just £6,000 and was offered credit in one of as much as £5,000+ all because she has a "good credit rating" and "a well maintained current account". Yeah right, I'd wonder how long her worthy credit rating would last after trying to manage that much credit on her low salary?

[MelanieGiles]

I once did an experiment in Cardiff on a Saturday afternoon, and discovered that I could have racked up £80,000 in store, credit cards and loans in just one day. It is quite astonishing.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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[scaredkez]

wow melanie that was a lot. i watched the programme myself last night found it very interesting, and like others when pointed out how long a 500 debt on a cc would take to pay off, was astonished!!
kerri

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[beresford]

That is very shocking Melanie. I hope you weren't tempted to actually go ahead with all that...

[MelanieGiles]

I think my husband thinks I already did!!! He keeps moaning about his ever reducing share of our wardrobe space.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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[Martin2011]

80K Melanie.... cripes.....wonder if it's possible to spend that in a day.... took me nearly 15 years of carelessness and general stupidity (and in fairness quite a bit of bad luck) to borrow 84k....!!!... Trying to imagine what kind of shops would need to offer that much credit...20 years ago, when I bought my first flat, 80k could have got a 3 bed detached in most parts of the country....

Isn't it worrying that we know there's so many folk out there like us availing themselves of those offers, getting deeper and deeper in and maybe not even being aware of the very real risks....Doesn't feel right that it's allowed to happen somehow.....and for those who don't look for a solution along the lines of IVA till they're really desperate, they, like my wife and I did, might spend years, on reasonable incomes, living on next to nothing in an attempt to avaoid ever defaulting....it worked, but I so wish I'd swallowed my pride a few years sooner than I did...

No worries... 23 down now, 37 to go...

Martin

[MelanieGiles]

Martin

It is so refreshing seeing someone posting in favour of the IVA process, when there is so much bad press about inapprpriate advertising and mis-selling. You are a goodly way through your IVA, and I am sure that it is not easy to make those payments each month, but you remain positive and proud that you followed this route.

It is so easy to find credit in today's marketplace, and there is definately irresponsible lending as well as irresponsible borrowing. Our society and economy are so based on consumer goods, that the country would collapse without such markets, but thankfully we do have a variety of solutions available to deal with indebtedness.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
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See customer feedback at:
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[Welsh Boy]

I think one of the most ironic parts of the availabilty of credit is that those that don`t really need help i.e. the best rates etc. are offered them and those that really could do with a helping hand find it more difficult to obtain these products.

I remember a conversation with a client of mine over 12 years ago, when they told me, when they really needed help from the bank they couldn`t have it (they were setting up a business at the time) and now that the business was a success they could have anything they wanted that the bank offered they didn`t need it.

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[Martin2011]

That really is ironic isn't it.... but as my mum always said, money makes money, which does seem to be true in many ways, but it still strikes me as an odd way to run a society, and sustainable???....Can't really see how it can be in the long run....

Thanks again Melanie, you have a knack of making me smile for which I'm grateful... am proud of my IVA, mainly because it felt like a proper planned decision to take control and for the first time in years I know I'm spending my money and it's under control. Most importantly I've learned so much through the process that I know I'll manage money so much better when this is all over, and if I ever consider paying to spend someone elses money i.e., credit again, I'll just look back at this agreement and remind myself where it can end up...

Best regards

Martin