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Timm

Overdraft Interest Rates Rising

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Overdrafts are unsecured so are always a lot greater than BOE.

Still I see your point about the disparity. However banks no longer have much to lend, so they can afford to be picky and charge lots for putting people in debt. To be expected I would have thought, particularly with rising unemployment and greater risk of people defaulting on their obligations.

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Overdrafts are unsecured so are always a lot greater than BOE.

Still I see your point about the disparity. However banks no longer have much to lend, so they can afford to be picky and charge lots for putting people in debt. To be expected I would have thought, particularly with rising unemployment and greater risk of people defaulting on their obligations.

I agree with what you say.

The point is that commercial rates for debt are rising, whilst BoE rate is revealed as an irrelevance.

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I agree with what you say.

The point is that commercial rates for debt are rising, whilst BoE rate is revealed as an irrelevance.

Perfect situation for those who have tracker loans. BOE rate will have to stay low to try and stop commercial rates sky rocketing.

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Perfect situation for those who have tracker loans. BOE rate will have to stay low to try and stop commercial rates sky rocketing.

These rates are mind boggling! :o Unless better quality borrowers can move to better value lenders?

And it seems some of the banks just dont want the business and others are more competitive

http://www.tescofinance.com/personal/finan...loans/index.jsp://http://uk.zopa.com/ZopaWeb/public/b...loans/index.jsp://http://uk.zopa.com/ZopaWeb/public/b...loans/index.jsp://http://uk.zopa.com/ZopaWeb/public/b...loans/index.jsp

8.0% APR Typical on loans £5,000 to £14,999.

://http://www.tescofinance.com/persona...9.

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If not the BOE will have to enable ordinary folk to get cheaper finance or they will get a massive collapse.

Edited by aliveandkicking

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These rates are mind boggling! :o Unless better quality borrowers can move to better value lenders?

And it seems some of the banks just dont want the business and others are more competitive

If not the BOE will have to enable ordinary folk to get cheaper finance or they will get a massive collapse.

how they gonna manage that then

Edited by lowrentyieldmakessense(honest!)

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how they gonna manage that then

The solution in the USA to get consumer loans cheaper was to begin the TALF program in November 2008

http://online.wsj.com/article/BT-CO-20090528-717375.html

The Fed will take these consumer and student loans and so forth as collateral for loans to the financier where the new money issued by the feds is a none recourse loan so the fed can only seize the security if the loan defaults and the loan monies remain in the economy.

So if you buy a car say, you get a cheap consumer loan and your loan goes to the feds to release the loan money to the car dealer for lending again. And at worst if the loans go bad the worst that can happen is the financier no longer owns the loans. So even a small time dealer can issue consumer loans and not be too frightened if it all turns to custurd.

The beauty of the TALF is that it bypasses the zombie banks.

If Britain has zombie banks and sufficient deflation then it will have to also bypass the zombie banks or buy them outright and require them to directly lend BOE money in a similar manner. Otherwise if deflation gets going it will just roll on till we are back in the stoneage with a similarly low stoneage population.

Edited by aliveandkicking

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The solution in the USA to get consumer loans cheaper was to begin the TALF program in November 2008

http://online.wsj.com/article/BT-CO-20090528-717375.html

The Fed will take these consumer and student loans and so forth as collateral for loans to the financier where the new money issued by the feds is a none recourse loan so the fed can only seize the security if the loan defaults and the loan monies remain in the economy.

So if you buy a car say, you get a cheap consumer loan and your loan goes to the feds to release the loan money to the car dealer for lending again. And at worst if the loans go bad the worst that can happen is the financier no longer owns the loans. So even a small time dealer can issue consumer loans and not be too frightened if it all turns to custurd.

The beauty of the TALF is that it bypasses the zombie banks.

If Britain has zombie banks and sufficient deflation then it will have to also bypass the zombie banks or buy them outright and require them to directly lend BOE money in a similar manner. Otherwise if deflation gets going it will just roll on till we are back in the stoneage with a similarly low stoneage population.

you can fool some of the people all of the time

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Guest DissipatedYouthIsValuable

I have no doubt that this generosity of the banks will be helping to enable ordinary people to joyfully indulge in spending happily, bringing on the much needed recovereh.

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