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

astrofool · 08-06-2009 02:08PM

stepbar wrote: »

But to take money from a credit card (through an ATM machine) is very stupid.

Most cards don't let you take cash out on them unless you are in credit to that amount.

Jesus Wept · 08-06-2009 03:35PM

Wibbs wrote: »

I have a credit card in my company's name, but not a personal one. I could in a real pinch use it, so it is there for that. I personally see a credit card as a parachute. If the plane is in trouble I'll jump, but I don't see the appeal of parachuting as a sport*

I come from a time where credit was considered a bit shameful in a way. Getting things on the drip. Yep that's fine for a house or a car or student loans, or even a holiday, but for non essentials? Nope. And a helluva lot of stuff is non essential. I see credit cards and easy personal credit itself as a scam(it's the lifeblood of biz but not personal). I liken it to people paying more for a tee shirt that has a manufacturers name on it. You're paying more to advertise their product. They should be paying you. Genius the person who came up with that notion. Credit cards are a similar mad layer of abstraction to my mind.

I was beside a woman at the bar a few weeks back and she was paying for two cocktails wit a credit card. No sorry, if you can't stump up the cash for beer, well then you're living beyond your means and sooner or later you will be screwed. Go home. I don't agree with the excuse or explanation of being paid monthly either. If you're short at the end of the month then again you're living outside your means.

*Daftest metaphor of the day:D

Using a credit card or debit card is an easy way to keep track of where and how you are spending your cash, because most people haven't the foggiest idea where it's dissapearing to.

That said, an awful lot of people don't seem to have enough cop on to handle having a credit card.

az2wp0sye65487 · 08-06-2009 03:40PM

astrofool wrote: »

Most cards don't let you take cash out on them unless you are in credit to that amount.

You can withdraw cash on a credit card even if you owe money on it. Once your amount of credit isn't maxed out.

It's not advisable though... very high interest

08-06-2009 03:42PM

The credit card bubble will be the next to burst! It will probably start in the USA, then fall like dominoes about the world. "Data released last week by the Federal Reserve shows that Americans’ total credit card debt has reached $951.7 billion—up 8.2 percent from a year ago and the highest amount ever recorded."
Source: http://www.americanprogress.org/issues/2008/04/plastic_problems.html

sendic · 08-06-2009 05:52PM

300 a month interest on 2.5k? Wouldn't that be an apr of 144% ?

Degsy wrote: »

I got a rebate just before christmas,the firsts thing i did was clear my credit card bill(two and a half grand)..if i hadnt done that i'd be fcucked..it was costing 300 a month just in interest.

Overheal · 08-06-2009 06:05PM

You need a student loan system in Ireland. What you have now is mad, as they arent much better than credit cards. Stateside a student loan means you can opt out of payments while you are in attendance - so for the vast majority of students, they wouldnt have to begin to pay back until the year after they graduate, by which point theyve hopefully got a well paying job/career going.

dr.bollocko · 08-06-2009 07:12PM

Overheal wrote: »

by which point theyve hopefully got a well paying job/career going.

I spies a flaw in your plan right there!

aoibhebree · 08-06-2009 07:25PM

Over four years in college, I lived off overdrafts and credit cards when I wasn't working and paid them off when I was. Now I'm finished, and I'm only €885 in debt, which I'm pretty happy with. I never had to pay any interest (student account!) and I plan to pay the rest off over the next few weeks now that I'm working. I'd much rather owe it to the bank than to my family or friends.

I definitely wouldn't be as quick to go into debt now that I'm in the grown-up world, where we've to pay interest :mad: Like I'd rather save up for a holiday that get a loan, because I think I'd enjoy it more then.

ronanos · 08-06-2009 08:55PM

well what is the solution? For the guy that has so much debt on all the cards? How does he sort it out?

dr.bollocko · 08-06-2009 08:56PM

ronanos wrote: »

well what is the solution? For the guy that has so much debt on all the cards? How does he sort it out?

Chop the cards up and get yerself a medium term loan to pay off the debts.

maherw2 · 08-06-2009 09:43PM

On any given month over 2.6 billion is outstanding on Irish credit cards.There was an increase of over 270,000 Euros per hour in non-mortgage debt between Jan 2005 and 31 Dec 2007 according to the central bank. From these figures its clear a lot of people are stupid enough to borrow on their credit cards.

Wibbs · 08-06-2009 10:43PM

Blue_Lagoon wrote: »

The credit card bubble will be the next to burst! It will probably start in the USA, then fall like dominoes about the world. "Data released last week by the Federal Reserve shows that Americans’ total credit card debt has reached $951.7 billion—up 8.2 percent from a year ago and the highest amount ever recorded."
Source: http://www.americanprogress.org/issues/2008/04/plastic_problems.html

+100000 I think it's softened the blow of this recession(ugh) significantly. Its another layer of abstraction that disguises the real issues. I actually saw it in microcosm in an industry I deal with a few years back. the work dried up for a time and first the loans people had were defaulted on, people cut their cloth to their measure, but then the credit card bills really started to bite a few months down the line. And this was in the middle of the boom times so it wasn't too bad. Was chatting with a local shop owner recently. Newsagents type o thang and he was commenting that the amounts put on credit cards have been getting noticeably smaller over the last year. It's a worry alright and I've been hoping and still hope that it won't have the same effect on the bigger picture now.

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

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