Credit cards for newbie
Jan 8th 2010, 6:44 am
#61
Banned
Joined: Dec 2005
Location: In Limbo
Posts: 15,706
Re: Credit cards for newbie
pgtips,
You get (some of) my sympathy for the situation you found yourself in. BUT at the end of the day YOU took out the credit cards, the banks didnt hold you at gun point until you signed. Sorry but in reality you have NO ONE but yourself to blame.
You get (some of) my sympathy for the situation you found yourself in. BUT at the end of the day YOU took out the credit cards, the banks didnt hold you at gun point until you signed. Sorry but in reality you have NO ONE but yourself to blame.
Jan 8th 2010, 7:21 am
#62
...
Joined: Sep 2004
Posts: 1,165
Re: Credit cards for newbie
I agree with you to an extent, but when one is in credit card debt, and the credit card companies choose to slap all sorts of fees onto the original debt, thus an ever increasing burden, this helps no one. They even end up selling your debts to some very unsavoury characters in certain circumstances.
Luckily I have the means to pay it all off and most is settled, however there are thousands of other people who are not so fortunate and end up living constantly harassed by these sharks. some end up borrowing off one shark to pay of another until things just get completely out of hand.
Best bet is to avoid these things unless absolutely necessary.
I have gone back to the good old days, if I have the cash in the bank, I buy it. If I have not, I save up for it. This format is working great for me. The only main debt I will soon have is on my UK property and this is asset backed.
Jan 8th 2010, 7:32 am
#63
Resident Maple Leaf Lush
Joined: Oct 2008
Posts: 1,749
Re: Credit cards for newbie
HSBC and TD Canada Trust would only provide me with a secure credit card, which required $1000 deposit, and I didn't have a $1000 lying around to just get a credit card.
After some searching I found CaptialOne would provide a secure credit card, but only wanted $200 deposit, which I felt was more reasonable. It did of course mean my credit limit was $200, but I did not find that too much of a problem.
After a few years of building up credit I went to TD to see if they would provide me with a credit card that was not secured and they were more than happy to do so, with a $3000 limit.
Jan 8th 2010, 7:42 am
#64
Lost in BE Cyberspace
Joined: Aug 2005
Location: South of Calgary
Posts: 13,380
Re: Credit cards for newbie
I agree with you to an extent, but when one is in credit card debt, and the credit card companies choose to slap all sorts of fees onto the original debt, thus an ever increasing burden, this helps no one. They even end up selling your debts to some very unsavoury characters in certain circumstances.
They cannot slap on any such fees unless you have given them authority to do so in the contract you entered into with them. The sharks you have referred to are simply attempting to effect a recovery.
None of the above would happen unless you defaulted to a significant degree. Such would not occur if you missed a single payment. If you wish to know who to blame, or where the "fault" lies, look in the mirror.
Jan 8th 2010, 8:30 am
#65
Joined: Aug 2008
Posts: 2,159
Re: Credit cards for newbie
They cannot slap on any such fees unless you have given them authority to do so in the contract you entered into with them. The sharks you have referred to are simply attempting to effect a recovery.
None of the above would happen unless you defaulted to a significant degree. Such would not occur if you missed a single payment. If you wish to know who to blame, or where the "fault" lies, look in the mirror.
None of the above would happen unless you defaulted to a significant degree. Such would not occur if you missed a single payment. If you wish to know who to blame, or where the "fault" lies, look in the mirror.
I worked for a Credit Card company in the UK up until May last year. We dealt with what is know as the sub prime market. We gave very low credit limits to our customers, in an attempt to get them to spend, pay and build up their credit rating.
As soon as a payment went one day past its due date a 12 pound late fee was applied also a 12 pound fee would be applied once the late payment was 30 days over due. As soon as the account went into one day over it went to our collections dept who would then put your account into the automated system, this would then call all the numbers on the account from 8am - 9pm every single day apart from Sunday when the hours were reduced. After 90 days a default letter would be sent and the account past to debt collection. All letters sent before the default would mention the word default in bold type, this would be done to make the customer think it was a default letter.
I can assure you that since the credit crunch, the company I worked for did not sit back, they acted swiftly and with out any compassion at all. They didnt want to hear excuses,they wanted cash.
The APR on most of the cards we gave out was between 60 - 80%. As soon as a card was approved we would offer the customer the credit limit in cash sent to them by cheque or paid into their bank account. The cash interest rate on theses cards were on average 48%.
In my opinion we played on the vunerable and needy - the day I left that company was one of the best in my life. If you heard some of the collections calls that I listened to you would be shocked.
Jan 8th 2010, 8:38 am
#66
Joined: Aug 2005
Posts: 14,227
Re: Credit cards for newbie
I disagree.
I worked for a Credit Card company in the UK up until May last year. We dealt with what is know as the sub prime market. We gave very low credit limits to our customers, in an attempt to get them to spend, pay and build up their credit rating.
As soon as a payment went one day past its due date a 12 pound late fee was applied also a 12 pound fee would be applied once the late payment was 30 days over due. As soon as the account went into one day over it went to our collections dept who would then put your account into the automated system, this would then call all the numbers on the account from 8am - 9pm every single day apart from Sunday when the hours were reduced. After 90 days a default letter would be sent and the account past to debt collection. All letters sent before the default would mention the word default in bold type, this would be done to make the customer think it was a default letter.
I can assure you that since the credit crunch, the company I worked for did not sit back, they acted swiftly and with out any compassion at all. They didnt want to hear excuses,they wanted cash.
The APR on most of the cards we gave out was between 60 - 80%. As soon as a card was approved we would offer the customer the credit limit in cash sent to them by cheque or paid into their bank account. The cash interest rate on theses cards were on average 48%.
In my opinion we played on the vunerable and needy - the day I left that company was one of the best in my life. If you heard some of the collections calls that I listened to you would be shocked.
I worked for a Credit Card company in the UK up until May last year. We dealt with what is know as the sub prime market. We gave very low credit limits to our customers, in an attempt to get them to spend, pay and build up their credit rating.
As soon as a payment went one day past its due date a 12 pound late fee was applied also a 12 pound fee would be applied once the late payment was 30 days over due. As soon as the account went into one day over it went to our collections dept who would then put your account into the automated system, this would then call all the numbers on the account from 8am - 9pm every single day apart from Sunday when the hours were reduced. After 90 days a default letter would be sent and the account past to debt collection. All letters sent before the default would mention the word default in bold type, this would be done to make the customer think it was a default letter.
I can assure you that since the credit crunch, the company I worked for did not sit back, they acted swiftly and with out any compassion at all. They didnt want to hear excuses,they wanted cash.
The APR on most of the cards we gave out was between 60 - 80%. As soon as a card was approved we would offer the customer the credit limit in cash sent to them by cheque or paid into their bank account. The cash interest rate on theses cards were on average 48%.
In my opinion we played on the vunerable and needy - the day I left that company was one of the best in my life. If you heard some of the collections calls that I listened to you would be shocked.
My advice to anyone with an unmanageable amount of debt is to just get a load more, live the high life and declare bankruptcy. There is only a limited down side to doing that, so it's a rational thing to do.
Jan 8th 2010, 8:38 am
#67
Lost in BE Cyberspace
Joined: Aug 2005
Location: South of Calgary
Posts: 13,380
Re: Credit cards for newbie
I disagree.
I worked for a Credit Card company in the UK up until May last year. We dealt with what is know as the sub prime market. We gave very low credit limits to our customers, in an attempt to get them to spend, pay and build up their credit rating.
As soon as a payment went one day past its due date a 12 pound late fee was applied also a 12 pound fee would be applied once the late payment was 30 days over due. As soon as the account went into one day over it went to our collections dept who would then put your account into the automated system, this would then call all the numbers on the account from 8am - 9pm every single day apart from Sunday when the hours were reduced. After 90 days a default letter would be sent and the account past to debt collection. All letters sent before the default would mention the word default in bold type, this would be done to make the customer think it was a default letter.
I worked for a Credit Card company in the UK up until May last year. We dealt with what is know as the sub prime market. We gave very low credit limits to our customers, in an attempt to get them to spend, pay and build up their credit rating.
As soon as a payment went one day past its due date a 12 pound late fee was applied also a 12 pound fee would be applied once the late payment was 30 days over due. As soon as the account went into one day over it went to our collections dept who would then put your account into the automated system, this would then call all the numbers on the account from 8am - 9pm every single day apart from Sunday when the hours were reduced. After 90 days a default letter would be sent and the account past to debt collection. All letters sent before the default would mention the word default in bold type, this would be done to make the customer think it was a default letter.
Some would call that good credit control. When someone owes you money, do you feel sorry for them? In business, if one does, one does not stay in business very long.
The APR on most of the cards we gave out was between 60 - 80%. As soon as a card was approved we would offer the customer the credit limit in cash sent to them by cheque or paid into their bank account. The cash interest rate on theses cards were on average 48%.
In my opinion we played on the vunerable and needy - the day I left that company was one of the best in my life. If you heard some of the collections calls that I listened to you would be shocked.
In my opinion we played on the vunerable and needy - the day I left that company was one of the best in my life. If you heard some of the collections calls that I listened to you would be shocked.
Jan 8th 2010, 9:12 pm
#69
...
Joined: Sep 2004
Posts: 1,165
Re: Credit cards for newbie
Right, PGTips made reference to a 100 amount being turned into a 300 amount. On what you have said here, a 12 pound charge would apply if the arrears were paid within 30 days, passing to debt collection appears to take almost 3 months. It would appear that a 300% increase would take some time, even at your former employer.
Some would call that good credit control. When someone owes you money, do you feel sorry for them? In business, if one does, one does not stay in business very long.
I doubt I would be shocked. Remind me again, please, who was it that forced these people to take up such cards? What about personal responsibility?
Some would call that good credit control. When someone owes you money, do you feel sorry for them? In business, if one does, one does not stay in business very long.
I doubt I would be shocked. Remind me again, please, who was it that forced these people to take up such cards? What about personal responsibility?
I guess you are the financial guru ?
People fall into debt for all kinds of reasons, and a lot of time not deliberately.
Sometimes people rack up debt even though they are or were in good paying jobs. Have you not heard of Job loss, people being made redundant by the droves. UK unemployment about 2.5 million. What about those who are injured ? Or long term sickness comes upon someone.
According to you all these people should be thrown to the gallows !!!
Do not be so judgemental, because anybody's situation can change at a whim, even yours.
Jan 9th 2010, 1:57 am
#70
Joined: Sep 2008
Posts: 12,830
Re: Credit cards for newbie
Almost Canadian, I supose you have never got yourself into a pickle in life ?
I guess you are the financial guru ?
People fall into debt for all kinds of reasons, and a lot of time not deliberately.
Sometimes people rack up debt even though they are or were in good paying jobs. Have you not heard of Job loss, people being made redundant by the droves. UK unemployment about 2.5 million. What about those who are injured ? Or long term sickness comes upon someone.
According to you all these people should be thrown to the gallows !!!
Do not be so judgemental, because anybody's situation can change at a whim, even yours.
I guess you are the financial guru ?
People fall into debt for all kinds of reasons, and a lot of time not deliberately.
Sometimes people rack up debt even though they are or were in good paying jobs. Have you not heard of Job loss, people being made redundant by the droves. UK unemployment about 2.5 million. What about those who are injured ? Or long term sickness comes upon someone.
According to you all these people should be thrown to the gallows !!!
Do not be so judgemental, because anybody's situation can change at a whim, even yours.
When taking out loans or incurring debt, those that are financially insecure have the option of taking out insurances for events such as job loss, injury & critical illness. Sure bad stuff does unexpectedly happen, but this is by and far the minority of cases where people fall into debt. Many cases people spend money they don't have and then something happens and the money they were anticipating does not materialise or they spent it somewhere else.
Debt load needs to be planned and what if contingencies considered. The major lenders will often negotiate charges and debt when one is in financial difficulties. One of the issues there, is many people don't know that they can and how to go about it. Often people go into debt and adopt the ostrich approach and hope it will go away rather than being proactive.
Financial education is a must before incurring debt. Understand what you are getting into and stay with in your means (not the limits the lender sets if they are higher than you can manage). Perhaps there should be more regulation to help the financially vulnerable, but then the folks affected by this would likley be claiming they were being victimised by big brother (or sister)!
Last edited by Aviator; Jan 9th 2010 at 1:59 am.
Jan 9th 2010, 2:38 am
#71
Joined: Aug 2008
Posts: 2,159
Re: Credit cards for newbie
Right, PGTips made reference to a 100 amount being turned into a 300 amount. On what you have said here, a 12 pound charge would apply if the arrears were paid within 30 days, passing to debt collection appears to take almost 3 months. It would appear that a 300% increase would take some time, even at your former employer.
Some would call that good credit control. When someone owes you money, do you feel sorry for them? In business, if one does, one does not stay in business very long.
I doubt I would be shocked. Remind me again, please, who was it that forced these people to take up such cards? What about personal responsibility?
Some would call that good credit control. When someone owes you money, do you feel sorry for them? In business, if one does, one does not stay in business very long.
I doubt I would be shocked. Remind me again, please, who was it that forced these people to take up such cards? What about personal responsibility?
On the other hand, people took the card out, maxed it up with no intention of paying. I didnt think we should treat the want to pay but cant pay the same as can pay wont pay customers.
Its a very difficult subject to discuss on a forum.
Jan 9th 2010, 3:29 am
#72
...
Joined: Sep 2004
Posts: 1,165
Re: Credit cards for newbie
Difficult but essential if we can help some newbie, and steer them away from getting suckered into this pit of debt.
It is the small print that is the killer, the one the credit card companies do not want you to see before signing up.
I personally do not have a problem with credit cards, but with the cowardly companies who are quick to push people deeper and deeper into debt once they get into difficulties. They increase your initial debt with all sorts of fees even though you are not borrowing any more.This is deliberate so they can make more money. They are happy when you miss a couple of payments or more so they can throw all sorts of fees at you and enslave you with a bigger debt to them. The harassment and intimidation which sometimes follows is ridiculous and can get quite threatning. These people are not your friends, quite the opposite, and they will show you their nasty side quicker than you can say boo !!!
And to the person who mentioned payment protection insurance, sometimes these policies are not worth the paper they are written on, and they will try every which way to get out of paying.
It is the small print that is the killer, the one the credit card companies do not want you to see before signing up.
I personally do not have a problem with credit cards, but with the cowardly companies who are quick to push people deeper and deeper into debt once they get into difficulties. They increase your initial debt with all sorts of fees even though you are not borrowing any more.This is deliberate so they can make more money. They are happy when you miss a couple of payments or more so they can throw all sorts of fees at you and enslave you with a bigger debt to them. The harassment and intimidation which sometimes follows is ridiculous and can get quite threatning. These people are not your friends, quite the opposite, and they will show you their nasty side quicker than you can say boo !!!
And to the person who mentioned payment protection insurance, sometimes these policies are not worth the paper they are written on, and they will try every which way to get out of paying.
Jan 9th 2010, 7:40 am
#73
Joined: Aug 2008
Posts: 2,159
Re: Credit cards for newbie
Difficult but essential if we can help some newbie, and steer them away from getting suckered into this pit of debt.
It is the small print that is the killer, the one the credit card companies do not want you to see before signing up.
I personally do not have a problem with credit cards, but with the cowardly companies who are quick to push people deeper and deeper into debt once they get into difficulties. They increase your initial debt with all sorts of fees even though you are not borrowing any more.This is deliberate so they can make more money. They are happy when you miss a couple of payments or more so they can throw all sorts of fees at you and enslave you with a bigger debt to them. The harassment and intimidation which sometimes follows is ridiculous and can get quite threatning. These people are not your friends, quite the opposite, and they will show you their nasty side quicker than you can say boo !!!
And to the person who mentioned payment protection insurance, sometimes these policies are not worth the paper they are written on, and they will try every which way to get out of paying.
It is the small print that is the killer, the one the credit card companies do not want you to see before signing up.
I personally do not have a problem with credit cards, but with the cowardly companies who are quick to push people deeper and deeper into debt once they get into difficulties. They increase your initial debt with all sorts of fees even though you are not borrowing any more.This is deliberate so they can make more money. They are happy when you miss a couple of payments or more so they can throw all sorts of fees at you and enslave you with a bigger debt to them. The harassment and intimidation which sometimes follows is ridiculous and can get quite threatning. These people are not your friends, quite the opposite, and they will show you their nasty side quicker than you can say boo !!!
And to the person who mentioned payment protection insurance, sometimes these policies are not worth the paper they are written on, and they will try every which way to get out of paying.
Jan 9th 2010, 12:52 pm
#74
Joined: Sep 2008
Posts: 12,830
Re: Credit cards for newbie
Difficult but essential if we can help some newbie, and steer them away from getting suckered into this pit of debt.
It is the small print that is the killer, the one the credit card companies do not want you to see before signing up.
I personally do not have a problem with credit cards, but with the cowardly companies who are quick to push people deeper and deeper into debt once they get into difficulties. They increase your initial debt with all sorts of fees even though you are not borrowing any more.This is deliberate so they can make more money. They are happy when you miss a couple of payments or more so they can throw all sorts of fees at you and enslave you with a bigger debt to them. The harassment and intimidation which sometimes follows is ridiculous and can get quite threatning. These people are not your friends, quite the opposite, and they will show you their nasty side quicker than you can say boo !!!
And to the person who mentioned payment protection insurance, sometimes these policies are not worth the paper they are written on, and they will try every which way to get out of paying.
It is the small print that is the killer, the one the credit card companies do not want you to see before signing up.
I personally do not have a problem with credit cards, but with the cowardly companies who are quick to push people deeper and deeper into debt once they get into difficulties. They increase your initial debt with all sorts of fees even though you are not borrowing any more.This is deliberate so they can make more money. They are happy when you miss a couple of payments or more so they can throw all sorts of fees at you and enslave you with a bigger debt to them. The harassment and intimidation which sometimes follows is ridiculous and can get quite threatning. These people are not your friends, quite the opposite, and they will show you their nasty side quicker than you can say boo !!!
And to the person who mentioned payment protection insurance, sometimes these policies are not worth the paper they are written on, and they will try every which way to get out of paying.
