cashinmattress Posted March 18, 2009 Share Posted March 18, 2009 Is the party finally over for credit card industry? Currently it is estimated that credit card debt in the UK stands at a staggering £53 billion. Hmm. So at an average of say...15%, the UK is paying the card companies a whopping £7,950,000,000 in interest annually. With the average adult carrying a debt of close to £2,000 in addition to their other financial commitments. £2000 at 15% is £300 annual interest. Complete wasted money on a two grand purchase.... ie a big screen tele. And to think a lot of people, paying a huge mortgage, and maxed out on credit cards have been touting the 'dead money' mantra. Hmmm... I know that MSE Lewis has been selling the idea of 'stoozing'. My idiot cousin bought his motor on a few zero rate cards, and assured me that these offers would be around for a long time, and he enjoyed having his '0%' car loan for his fancy German import.... That was in late summer '07. We are still talking but I dare not bring up the car.... Quote Link to comment Share on other sites More sharing options...
Guest BoomBoomCrash Posted March 18, 2009 Share Posted March 18, 2009 I swear Martin Lewis is a banking industry stooge. I mean he was a tireless advocate of credit cards for the purposes of taking advantage of 0% deals. Of course now those deals are gone and a lot of the mugs that listened to him are in serious debt and paying huge amounts of interest on that debt. Quote Link to comment Share on other sites More sharing options...
Mixle Posted March 19, 2009 Share Posted March 19, 2009 £2000 for an adult, on a credit card? It isn't really that much. I have a balance of about £500, but I will pay it off by the end of the month, like I've paid off everything every month for years. You have to be reliable and have self control and a good sense of timing to go stoozing. If you've ever forgotten something in the oven/taxi/train, don't bother. Leave it to people like me (though I can't be bothered, I'm just in it for the airmiles...) Quote Link to comment Share on other sites More sharing options...
erranta Posted March 19, 2009 Share Posted March 19, 2009 (edited) I swear Martin Lewis is a banking industry stooge. I mean he was a tireless advocate of credit cards for the purposes of taking advantage of 0% deals. Of course now those deals are gone and a lot of the mugs that listened to him are in serious debt and paying huge amounts of interest on that debt. Very close! Try - 'they' wanted you to swop banks and cards because all new accounts (for past few years) are OPEN to 'Financial information sharing'! 'Old' Accounts were not! poss confusing line edit Edited March 19, 2009 by erranta Quote Link to comment Share on other sites More sharing options...
ChinaReader Posted March 19, 2009 Share Posted March 19, 2009 I swear Martin Lewis is a banking industry stooge. I mean he was a tireless advocate of credit cards for the purposes of taking advantage of 0% deals. Of course now those deals are gone and a lot of the mugs that listened to him are in serious debt and paying huge amounts of interest on that debt. That's slightly unfair - his advice was never to take out extra debt just for fun, but rather to move your debts to the least expensive option, while paying them off as fast as you could. Quote Link to comment Share on other sites More sharing options...
23rdian Posted March 19, 2009 Share Posted March 19, 2009 Hactually, did this for quite a time. Still have about three cards with about 15k outstanding (yes, amazingly still at 0%) Wasn't bad while it lasted. Just wish I had put the proceeds into the yellow stuff Quote Link to comment Share on other sites More sharing options...
bambam Posted March 19, 2009 Share Posted March 19, 2009 I swear Martin Lewis is a banking industry stooge. I mean he was a tireless advocate of credit cards for the purposes of taking advantage of 0% deals. Of course now those deals are gone and a lot of the mugs that listened to him are in serious debt and paying huge amounts of interest on that debt. Martin Lewis' main interest is having his face on TV, the internet, etc. Any actual advice is secondary to that. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted March 19, 2009 Share Posted March 19, 2009 That's slightly unfair - his advice was never to take out extra debt just for fun, but rather to move your debts to the least expensive option, while paying them off as fast as you could. Everything I've read of him he always advising paying off the debt and paying off the debt on the card with the highest IR first. However some stupid people won't read the paying it off bit and just see what equates to free money. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted March 19, 2009 Share Posted March 19, 2009 The stoozers... didn't they live inside Fraggle Rock? Martin Lewis' best advice is to pay off debt, the rest of his crazy schemes like changing credit cards every 6 months and fixing your gas/electricity rates are slightly less clever. Quote Link to comment Share on other sites More sharing options...
manterik Posted March 19, 2009 Share Posted March 19, 2009 £2000 for an adult, on a credit card? It isn't really that much. I have a balance of about £500, but I will pay it off by the end of the month, like I've paid off everything every month for years. You have to be reliable and have self control and a good sense of timing to go stoozing. If you've ever forgotten something in the oven/taxi/train, don't bother. Leave it to people like me (though I can't be bothered, I'm just in it for the airmiles...) No it isn't. I work away from home on contract, regularly have £2K on my card and simply use it as a months free cashflow paying it off in full. Quote Link to comment Share on other sites More sharing options...
Danny Deflation Posted March 19, 2009 Share Posted March 19, 2009 (edited) The trouble with credit cards is that most don't actually know how to use them. Transferring a huge balance to a 0% card is all very well and good, but it's not getting rid of the debt and why the hell have you got a huge balance in the first place. And unless you pay off the full balance before the end of the introductory period, it's pointless. Using a credit card for cash advances is madness. Paying off the full balance of a card before ANY charges or interest are added is the only correct way to use a card. (To be honest, I think the Martin Lewis-bashing is a bit unfair. I don't think he's ever advocated debt, just advised people on the best and cheapest way to escape from it. You should read Alvin Hall's book: he advocates having one or two credit cards, in the highly likely event that you get stuck in a foreign country with no money, and he even admits to owning a store card.) Edited March 19, 2009 by Danny Deflation Quote Link to comment Share on other sites More sharing options...
Moo Posted March 19, 2009 Share Posted March 19, 2009 No it isn't. I work away from home on contract, regularly have £2K on my card and simply use it as a months free cashflow paying it off in full. Correct, it isn't for you. However, put that same card in the hands of someone on (he says, plucking a real example from a friend) about £18k, and renting a 1-bed flat, you've got a sum of money that will take literally years to repay. When looking at card debt, the overall figures are, for the reasons you give, pretty meaningless, as fair amount of it is perfectly sensible and responsibily handled very short term borrowing. The problem is all those card holders who should, in any sane society, never have been allowed the cards in the first place, because they've never had the earning power to repay anything like the full amount they could borrow on them. Quote Link to comment Share on other sites More sharing options...
Mr Nice Posted March 19, 2009 Share Posted March 19, 2009 stoozing is just borrowing money off of your 0% interest credit card, and investing the proceeds in something that pays interest. done correctly you would never carry a balance past the introductory rate. it's kind of like the poor man's yen carry trade. the pay out never seemed high enough to bother with imo, but I'm not sure why so many are so bitter about the practice. Quote Link to comment Share on other sites More sharing options...
kilroy Posted March 19, 2009 Share Posted March 19, 2009 I swear Martin Lewis is a banking industry stooge. I mean he was a tireless advocate of credit cards for the purposes of taking advantage of 0% deals. Of course now those deals are gone and a lot of the mugs that listened to him are in serious debt and paying huge amounts of interest on that debt. wrong. He told them not to spend it as they would need to repay it. If they listened to him they will be fine, if tey did not listen then it is hardly his fault. I used to do it before I sold up Quote Link to comment Share on other sites More sharing options...
pilchardthecat Posted March 19, 2009 Share Posted March 19, 2009 I have an average of £1,000 of credit card debt.. ... which i pay off in full every month Lies, damn lies and statistics Quote Link to comment Share on other sites More sharing options...
DrGUID Posted March 19, 2009 Share Posted March 19, 2009 I wonder how many people are now in debt due to stoozing catastrophes? I did it last year, and only just paid off my final bill in time (partly because I'd hoovered up too many 1 year fixed rate accounts last year). Quote Link to comment Share on other sites More sharing options...
Imminent_plunge Posted March 19, 2009 Share Posted March 19, 2009 No it isn't. I work away from home on contract, regularly have £2K on my card and simply use it as a months free cashflow paying it off in full. +1. I pay my living expenses on my credit card, keep an online account and the balance gets paid in full every month automatically. Quote Link to comment Share on other sites More sharing options...
mattydread Posted March 19, 2009 Share Posted March 19, 2009 Martin Lewis' main interest is having his face on TV, the internet, etc. Any actual advice is secondary to that. He was on the radio (1) yesterday, says the downturn,recession, depression will last 5 yrs before things get better. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted March 19, 2009 Share Posted March 19, 2009 +1. I pay my living expenses on my credit card, keep an online account and the balance gets paid in full every month automatically. This is the sensible way to use credit cards. Unfortunately, many people can't avoid the temptation to buy just stick it on the card and worry about it tomorrow. Then when tomorrow comes they can't clear the balance and the long-term debt begins. Quote Link to comment Share on other sites More sharing options...
Danny Deflation Posted March 19, 2009 Share Posted March 19, 2009 (edited) He was on the radio (1) yesterday, says the downturn,recession, depression will last 5 yrs before things get better. A bit optimistic, in my view, but at least he's been a tad more realistic than some of the other commentators, particularly those who say we'll see recovery next year. I actually like Martin Lewis, but it appears from this thread that I'm a lone voice. Edited March 19, 2009 by Danny Deflation Quote Link to comment Share on other sites More sharing options...
Y-QUERK Posted March 20, 2009 Share Posted March 20, 2009 Well sometimes people only have to exist to be hated. ML, Peston, etc. Quote Link to comment Share on other sites More sharing options...
nohpc Posted March 20, 2009 Share Posted March 20, 2009 Is the party finally over for credit card industry?Hmm. So at an average of say...15%, the UK is paying the card companies a whopping £7,950,000,000 in interest annually. £2000 at 15% is £300 annual interest. Complete wasted money on a two grand purchase.... ie a big screen tele. And to think a lot of people, paying a huge mortgage, and maxed out on credit cards have been touting the 'dead money' mantra. Hmmm... I know that MSE Lewis has been selling the idea of 'stoozing'. My idiot cousin bought his motor on a few zero rate cards, and assured me that these offers would be around for a long time, and he enjoyed having his '0%' car loan for his fancy German import.... That was in late summer '07. We are still talking but I dare not bring up the car.... If you have the disipline and organisation to stooze it is still well worth it. There are loads of 0% credit cards around. I just got a virgin credit card 0% for 16 months with a 3% balance transfer fee. Looks like your cousin isn't an idiot after all. Quote Link to comment Share on other sites More sharing options...
DrGUID Posted March 20, 2009 Share Posted March 20, 2009 A bit optimistic, in my view, but at least he's been a tad more realistic than some of the other commentators, particularly those who say we'll see recovery next year. I'm coming around to the idea that we'll see a double dip recession. As soon as this one is over, there will be another one caused by something that is happening now (oil price rising? quantitative easing? currency wars? inflation and rising interest rates?) Quote Link to comment Share on other sites More sharing options...
Austin Allegro Posted March 20, 2009 Share Posted March 20, 2009 A bit optimistic, in my view, but at least he's been a tad more realistic than some of the other commentators, particularly those who say we'll see recovery next year.I actually like Martin Lewis, but it appears from this thread that I'm a lone voice. I'll stick up for Martin Lewis. He's not a financial expert (but doesn't really pretend to be) - he's essentially a populist journalist/consumer champion type. Most of the time he gets it right but, like most journos, had to know a little about a lot of things and subsequently got a few things wrong (eg, Icelandic banks). However he is/was one of the few people in the media advocating things like saving and being careful with money when everybody else was rolling around in the credit fuelled orgy. He's got more knowledge about economics in his little finger than Kirstie Allsop has in her whole body, for example. That said, I think Alvin Hall is a better all round advisor and it's a shame he isn't on our screens more. Quote Link to comment Share on other sites More sharing options...
Battenberg Posted March 20, 2009 Share Posted March 20, 2009 I'll stick up for Martin Lewis. He's not a financial expert (but doesn't really pretend to be) - he's essentially a populist journalist/consumer champion type. Most of the time he gets it right but, like most journos, had to know a little about a lot of things and subsequently got a few things wrong (eg, Icelandic banks). However he is/was one of the few people in the media advocating things like saving and being careful with money when everybody else was rolling around in the credit fuelled orgy. He's got more knowledge about economics in his little finger than Kirstie Allsop has in her whole body, for example. That said, I think Alvin Hall is a better all round advisor and it's a shame he isn't on our screens more. +1 I remember listening to him years ago and he said that he couldn't understand why people didn't shop around more, look for better prices and try and save themselves money. I believe that was the fundamental meaning behind his site, not to tell people to run up debt but rather to manage their money better. Sadly, many have not taken heed. Quote Link to comment Share on other sites More sharing options...
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