Are you stupid enough to borrow from your credit card company?

Wibbs · 07-06-2009 10:23PM

Woden wrote: »

Yeah but my point was without the additional information provided by yourself anyone paying with a cc would fall be under your assumption that they shouldn't be using it

Pedant:p:D

Correct in fairness.

07-06-2009 10:25PM

dr.bollocko wrote: »

I just want to question this fear of debt people have in this modern economic climate.

Seeing the family get deep into it and coming to me all the time for financial assistance tends to put a massive fear in you, aye

Some times things are worth more than what you have in liquid assets right now.

Yeah, peace of mind

dr.bollocko · 07-06-2009 10:29PM

bluewolf wrote: »

Yeah, peace of mind

Peace of mind is everything when it comes to it. There's no arguing with that.

Burning Eclipse · 07-06-2009 10:42PM

The only debt I have is a student loan. Had an overdraft for a while, but that was more like a cushion during 4th year and is gone now.

As for CC, I don't have one, but the GF does. She's had it about 6 years now and has never paid a cent of interest. Always pays the balance every month... They're handy for booking things like flights or accommodation, or buying online from sites that don't accept debit cards. Long term spending on them is a terrible idea!

astrofool · 07-06-2009 10:43PM

Wibbs wrote: »

God yes. Oh GOD yes. I remember being in the states in the 80's and a lot of shops had a cash only till/line. Good plan I reckon.

It's getting faster and faster to pay by card, in Dunnes for example, it takes all of 10 seconds to pay by card (inc. authorization from bank), far faster than paying by cash (far far faster if it's a woman/oap, or god fobid an OAP woman).

The reason it's slow in some places is because they use a dial up connection for each transaction, as broadband gets used more and more, this wait will disappear.

Credit card is often the cheapest way to buy goods, as it is the only method taken over the internet

L1011 · 07-06-2009 11:08PM

Wibbs wrote: »

It doesn't hold water for you, but clearly you're different and disciplined and rare in my experience. Fair play too. The credit card companies don't like your sort.

They still get merchant fees from each transaction... they're not doing it out of goodwill!

Firetrap · 07-06-2009 11:14PM

When I was young and impetuous, I ran up a debt of about 4 grand, mainly because I lost my job and had to get the money to pay for the car and other things until I got another job. It's very hard to pay it off because of the interest and the payment protection thingie that's on it. In the end I went to the credit union and got a loan to clear it. I threw a load of my spare cash at it and had the thing cleared in a year. I was so so happy when I made the final payment - it was like a weight had been lifted from my shoulders. I didn't get rid of the card because it's handy for buying things online and booking flights 'n stuff. So I simply brought the credit limit down and set up a direct debit to clear the balance every month. Happy days.

neaideabh · 07-06-2009 11:49PM

Have a car loan for €5000, personal loan for €750 and an overdraft of €500. This is debt I can manage.
Never got a credit card because i would go mad on it aswell.

Will never get a cc unless I could DEFINATELY afford it!

Spudmonkey · 08-06-2009 12:08AM

Why do it to yourself? Put yourself in a position where you are in debt to the bank? I like dr bollocko's comment about living life... I'm saving money now so that I can travel the world on the cheap and see places I never thought I would. Thats what I consider living life, not getting a new car!!!

AlmightyCushion · 08-06-2009 12:12AM

Burning Eclipse wrote: »

As for CC, I don't have one, but the GF does. She's had it about 6 years now and has never paid a cent of interest. Always pays the balance every month... They're handy for booking things like flights or accommodation, or buying online from sites that don't accept debit cards. Long term spending on them is a terrible idea!

I'm the same. Haven't paid a cent of interest on mine yet and I plan on keeping it that way. If I need money I'll take out a loan at a reasonably sensible interest rate and not some ass-raping percentage like my credit card has.

stepbar · 08-06-2009 12:23AM

It's not stupid to pay for stuff on your credit card. But to take money from a credit card (through an ATM machine) is very stupid. Personally I find a debit / credit card handy because it means that I don't have to be constantly searching for coins etc. I just don't like carrying cash.

On the point of Debt, people shouldn't really have to fear same once it's manageable. And to be honest some credit cards are compariable to the interest rates on some personal loans (Click card comes to mind).

As with most things in life there are people who have their head screwed on and there are those who don't.

Ruu_Old · 08-06-2009 12:31AM

My CC is issued by my life insurance company who also provide some regular banking stuff so I get cash back to pay off my insurance premiums so it works well for me to use it, no annual fee. It is paid off in full every month, not a cent of interest has been paid. It is not recommended to take out cash advances, never going to happen with me anyway.

It would be nice to use cash for everything but you won't have any credit history and it will hurt you and your pocket when going for any type of a loan or buying a house. I have had to build my credit rating from nothing since moving to the US 4 years ago and I won't be messing that up.

mickydoomsux · 08-06-2009 07:30AM

dr.bollocko wrote: »

Some times things are worth more than what you have in liquid assets right now.

Like what?

twanda · 08-06-2009 07:42AM

I used to have a credit card but destroyed it about 2 years ago.
I was a sucker for the banks method of sneakily raising the credit limit -- lost count of the amount of times I got a letter from bank- always somthing to the tune of ''we notice your credit limit may be a bit low for your 'needs' so we are raising it with immediate effect''. Always insisted to myself I would not spend up to the new limit but it slowly happened anyway. So I took out a loan to pay off the balance, cut the card up into pieces (very gratifying) and just have finished paying it off recently:)
I am living abroad and the ATM card I have here includes VISA functionality so it's great. I can use it like a credit card online etc. but it takes the money from my current account so it only works if the money is there -- thank God! Would be nice if more of the Irish banks offered that instead of Laser. I found a lot of online stores do not take Laser so I needed the credit card for that.

silverharp · 08-06-2009 08:00AM

I have my credit card on direct debit , I just treat it as another laser card. there was a good comedy sketch on Saturday night live wit a punch line of, "dont buy stuff you cant afford". pretty simple really.

ScumLord · 08-06-2009 08:24AM

Never had a credit card, they always seemed like an over complicated way of paying for things.

Snowie · 08-06-2009 08:35AM

delllat wrote: »

I have been chatting with a friend whos gotten himself hopelessly into debt on an assortment of credit cards that he has no chance of clearing

hes paying a small amount monthly but hes up to his tits and this is going to continue for the rest of his life as the interest is constantly building

ive talkled to him about transferring balances to lower interest rates and stuff but hes feels like he has no choice but to continue paying them their inflated interest rates

the funny thing is i asked him what he actually bought to amass such debts ON CREDIT and he doesnt really know

does anyone else buy things on credit they cant afford ?

No. That's just plain keeping up with appearances, Id be going to a dept advisor and getting some advice. there's also other options he has to sort out that mess..

skyhighflyer · 08-06-2009 09:03AM

VISA Debit card is what you need. Can only spend money you have and, unlike Laser, it's actually useful online.

Rebelheart · 08-06-2009 09:13AM

TPD wrote: »

I've a debit card, no overdraft here. Cant stand being under the pressure of a debt, so if I cant afford something or cant save for it, I wont buy it.

Ah now, ah now. We'll have none of that subversive talk here. Keep that up and the poor banks will have no work....

120_Minutes · 08-06-2009 09:26AM

i'm 1500 in debt with my cc and with the recession, wife losing her job its getting very difficult to pay it off. we had a family emergency last year just when we were getting on top of cc payments which set us back. i have a couple of things i could sell that would put a big dent in the debt but nobody seems to be buying at the mo.

as soon as its cleared (which prob wont be soon) its gone.....if i can get a visa debit. how easily are they got now? whos doing them?

Big Tone · 08-06-2009 09:28AM

Some people are getting into difficulties due to "predatory lending" by the credit card companies ie raising your limits without your consent.

A friend says he refuse to pay the debt he owes because the company gave it to him (obviously in the good times) and he didn't ask for it, but he spent it anyway.

One wonders where the law stands on predatory lending and what what rights/protection does the customer have?

Spudmonkey · 08-06-2009 09:38AM

Big Tone wrote: »

A friend says he refuse to pay the debt he owes because the company gave it to him (obviously in the good times) and he didn't ask for it, but he spent it anyway.

Did the bank stand over him and make him spend it??

seamus · 08-06-2009 09:40AM

Big Tone wrote: »

Some people are getting into difficulties due to "predatory lending" by the credit card companies ie raising your limits without your consent.

A friend says he refuse to pay the debt he owes because the company gave it to him (obviously in the good times) and he didn't ask for it, but he spent it anyway.

One wonders where the law stands on predatory lending and what what rights/protection does the customer have?

"Predatory lending" would be transferring money into your personal account that you don't have. Raising the credit limit on a credit card is not the same as giving you free money. At no point does a credit card constitute "cash in hand".

I honestly cannot understand *how* people build up credit card debt that requires years to pay off. 10 years to pay it off? That's 10-20k on your credit card? At what point do you look at your balance and go "Oh...hang on. I already owe the bank 5k. Maybe I shouldn't keep using this card".
You can't blame the bank. Using a credit card is a matter of self-control. If you keep spending up to your credit limit with no visible way of clearing it, then you clearly have no self-control. That's not the bank's problem, it's yours. You will spend it whether your credit limit is €2k or €10k. Policing your personal finance is nobody else's problem, it's yours. The bank have increased my credit card limit a number of times and shock, horror, I've managed to not spend it. How did that happen?

In general, I would never buy anything on a credit card if I couldn't pay it back within 2-3 months. I have gone into the red a number of times to a couple of €k. I don't sit on it and throw €20 a week at it for four years. I take big chunks of €500 and €1000 and throw them at it when I have them. So it's cleared asap, I don't pay interest and I don't have the stress of a debt hanging over my head. I think I've paid a grand total of €50 interest on my card since I got it 7 years ago.

peasant · 08-06-2009 09:49AM

Other than the bottle of milk at the corner shop or the occasional pint, I hardly ever buy anything with cash. Plastic all the way, debit card or credit card.
I've never paid a cent of interest either, everything gets paid off immediately.

There's always a few hundred tucked away for small emergencies (washing machine/car brakes down) everything else I save for and if I can't afford it, then I don't buy it until I can.

Makes for a somewhat modest but very stress free lifestyle. The Jones's have long since left me behind ...but ... ****em

mickydoomsux · 08-06-2009 10:00AM

Spudmonkey wrote: »

Did the bank stand over him and make him spend it??

Precisely. 'Predatory lending' is an excuse used by people with no self-control would stupidly and impulsively run up huge debts and need to find someone else to blame for their lack of common sense.

Spudmonkey · 08-06-2009 10:05AM

peasant wrote: »

Makes for a somewhat modest but very stress free lifestyle. The Jones's have long since left me behind ...but ... ****em

Ha ha, the Jones's may be passing you out again..... in the opposite direction!!

az2wp0sye65487 · 08-06-2009 10:15AM

<Ollie> wrote: »

I once had three credit cards with loads on em that I counldn't repay. I went to the credit union and got a loan to cover the debts. If OP's friend would qualify for a loan then this is the best option.

I now have only one card with a low limit and pay it off weekly.

Myself and the O/H have 2 credit cards each and all 4 were maxed out over a year ago. We both took Credit Union Loans to clear them.....

So with 00.00 balances all we had to pay was a fixed amount to the C.U. every month. Since then, there has been 1 or 2 occasions of wreckless spending on the credit cards, but also on occasion there have been times when we had to pay gas & esb bills, buy groceries & petrol.... and had no cash (payday not for a couple of weeks) so credit cards were used again...

So we now owe some money on the credit cards aswell as the credit union loan!

We're currently paying the minimum amount on the credit cards and as soon as the C.U. loan is payed off we'll start making a dent in the credit cards.

After 1 credit card each is cleared, they're getting cancelled. The 2 remaining credit cards will be kept at home - not in the wallet / purse; and they will only be used when there is cash available to clear the balance!

While I know what we did wrong, it is very easy to get into debt in the first place.

peanuthead · 08-06-2009 10:20AM

delllat wrote: »

I have been chatting with a friend whos gotten himself hopelessly into debt on an assortment of credit cards that he has no chance of clearing

hes paying a small amount monthly but hes up to his tits and this is going to continue for the rest of his life as the interest is constantly building

ive talkled to him about transferring balances to lower interest rates and stuff but hes feels like he has no choice but to continue paying them their inflated interest rates

the funny thing is i asked him what he actually bought to amass such debts ON CREDIT and he doesnt really know

does anyone else buy things on credit they cant afford ?

I think so, yes. I have a cc, the limit is 6grand, there is 5 on it. For me that is big debt, and I won't be doing it again.

See, I thin thats the important part. Doing it once or twice is okay, but you need to learn from that. I will clear the card, keep it, but never let it go past the month without being paid off in full ever again.

Try this line with your friend, this is the one that worked with me:

"Having a credit card is the equivilent to taking out a small loan with a huge interest rate."

This made me feel stupid and cheated, and not the smart high flier everyone seems to think they are when they whip out the Visa.

EDIT: I recently switched to Halifax, and I havent opened the pin number envelope, and don't intend to until its cleared (and not so I can make the same mistake again) There was one day I was in M&S and I almost used the flippin thing, only I didn't have the PIN number. Up until that point I just hadn't gotten round to opening the envelope. After that I realised it was actually a class way of preventing myself from using it.

Ha, I sound like I'm mad about using it, I'm not, and its the only debt I have, thank god!!

delllat · 08-06-2009 10:41AM

Ayaan Lazy Snowman wrote: »

Myself and the O/H have 2 credit cards each and all 4 were maxed out over a year ago. We both took Credit Union Loans to clear them.....

So with 00.00 balances all we had to pay was a fixed amount to the C.U. every month. Since then, there has been 1 or 2 occasions of wreckless spending on the credit cards, but also on occasion there have been times when we had to pay gas & esb bills, buy groceries & petrol.... and had no cash (payday not for a couple of weeks) so credit cards were used again...

So we now owe some money on the credit cards aswell as the credit union loan!

We're currently paying the minimum amount on the credit cards and as soon as the C.U. loan is payed off we'll start making a dent in the credit cards.

After 1 credit card each is cleared, they're getting cancelled. The 2 remaining credit cards will be kept at home - not in the wallet / purse; and they will only be used when there is cash available to clear the balance!

While I know what we did wrong, it is very easy to get into debt in the first place.

you should have just made the esb and gas wait on their cash !
they dont charge 21% interest

ScumLord · 08-06-2009 01:03PM

120_Minutes wrote: »

i have a couple of things i could sell that would put a big dent in the debt but nobody seems to be buying at the mo.

I bid €12.

Are you stupid enough to borrow from your credit card company?

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