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What I find a bit mean, is the banks are quite willing to lend them the money on Credit Cards, but when they want a loan to consolidate and take the debt at a lower rate they get refused. I have a friend who had this happen too.

They should be allowed the loan, and have all Credit Cards stopped and not be allowed one until the debt is paid.

Banks are greedy b@@@ards!!!

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Hmmm - belatedly reading this thread, I have to say I have no sympathy with these indebted fools. I'm sure they enjoyed spending the £34K (I would!) but now its time to pay, they want sympathy ("The bank made us do it").

If you want nice things, save for them. If you can't afford them, don't have them. These people have no sense of deferred gratification, the one thing that separates us from the animals.

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Hmmm - belatedly reading this thread, I have to say I have no sympathy with these indebted fools. I'm sure they enjoyed spending the £34K (I would!) but now its time to pay, they want sympathy ("The bank made us do it").

If you want nice things, save for them. If you can't afford them, don't have them. These people have no sense of deferred gratification, the one thing that separates us from the animals.

Thats where I have to strongly disagree with you. Not everyone has the acumen or forsight to manage money and frankly some are a little weaker (wether it be drugs alchohol credit etc etc) than others.

Its no good having a banking system that has no standards on credit lending going on customers past and current "form". Simply blaming the consumer (yes some are fools) when cheap and easy credit is such a rampant market is to simplistic. Banks should have to take some responsibility also otherwise they need ot pay the price also.

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Hmmm - belatedly reading this thread, I have to say I have no sympathy with these indebted fools. I'm sure they enjoyed spending the £34K (I would!) but now its time to pay, they want sympathy ("The bank made us do it").

If you want nice things, save for them. If you can't afford them, don't have them. These people have no sense of deferred gratification, the one thing that separates us from the animals.

Some interesting thoughts on this thread. I found it really difficult to even open a current account about 8 or 9 years ago, aged 25, because I had no credit rating, on account of never having been in debt, or having needed any credit facility. It took me ages to work my way up to getting a suitable credit score for the building soc to grant me a 30 page cheque book and guarantee card. I had to then prove my responsibility with store cards, credit cards etc before I was credit worthy for my mortgage.

Why are the same stringent rules seemingly not applied to the gormless pillocks who get themselves into debts that they have no real chance of paying back?

As soon as I got my mortgage, I got shut of any store cards I'd used to prove my credit worthiness, and promptly set about repaying the capital on my mortgage. Made the final payment about 3 months ago. House price to wages ratio was about 3:1 and it took me just over 5 years to pay it back. Didn't buy a new car, didn't MEW for any reason. I mainly did this because I remember the high unemployment levels of the 90s and I know that I might be in the same situation one day.

I feel the scale of the problem of personal debt is so large generally that it's going to ruin a lot of lives, relationships, institutions and that the knock on effects for the rest of us will be much tighter controls in the future.

Where does insuring debts come into this? Whose money eventually gets written off when the debts cannot be repaid? What happens? Anyone?

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Couple of thoughts really..

sympathy at their ignorance/stupidity is slightly tempered by the fact that if they do get help, I'll bet they don't end up repaying anything near the 34K.

2nd thought.

The people who had to ask COAB if he was joking. You're joking right !!!???

:blink:

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I'm afraid I was not joking! I did not spot the irony, as it was well pitched...I thought COAB was being genuine! Also, as was pointed out, I should have looked at his signature! :blink:

Ted D Bear - really good link! :D

Fernando - yes I agree some people are weaker than others, and I also agree that there should be more responsible lending by banks (I am the first in line to hate bankers), but at some point these people need to accept responsibility for themselves: I think it is safe to say that this silly cow got herself into this mess - the fact that the banks are complicit means that they are scum (of course), but does not absolve her.

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I'm afraid I was not joking! I did not spot the irony, as it was well pitched...I thought COAB was being genuine! Also, as was pointed out, I should have looked at his signature! :blink:

Ted D Bear - really good link! :D

Fernando - yes I agree some people are weaker than others, and I also agree that there should be more responsible lending by banks (I am the first in line to hate bankers), but at some point these people need to accept responsibility for themselves: I think it is safe to say that this silly cow got herself into this mess - the fact that the banks are complicit means that they are scum (of course), but does not absolve her.

Agree with that and as previous post said she probably won,t end up paying the full amount back so the bank will also end up stung......very annoying all round for the sensible individuals!

Cheers

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Someone should teach kids that credit cards should only be used to take advantage of the protection they offer - that being in debt is a mugs game - that borrowing on credit cards is just completely stupid - I don't think anyone tells youngsters this stuff. Do they?

Many years ago, when my parents taught me that being in debt is indeed "a mugs game" I was regarded as old-fashioned and out of touch.

Now, I still believe that being in debt is a mugs game. And I'm *still* regarded as old-fashioned and out of touch.

And no, I don't think this sort of stuff is taught in schools. Far too practical!

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Many years ago, when my parents taught me that being in debt is indeed "a mugs game" I was regarded as old-fashioned and out of touch.

Now, I still believe that being in debt is a mugs game. And I'm *still* regarded as old-fashioned and out of touch.

And no, I don't think this sort of stuff is taught in schools. Far too practical!

No it isn't taught in schools and therein lies the problem. I know how to balance my checkbook, understand APR's etc, but I didn't learn it at school. My parents are not great with money, they can balance a budget but don't seem to understand how much borrowing can cost. They have no ablility to save at all. They think I am weird that I have savings, and don't understand where I get the urge to save and not splurge. We need to teach kids how to manage money (and debt especially if they want a degree).

A good friend of mine got into serious trouble a few years ago with debt. She was depressed and got into a cycle of feeling miserable about her personal circumstances and making herself feel better short term by splurging. It was frustrating to watch and I tried to get her to see that increasing her debt to unmanageable proportions was only going to make her feel worse in the longer term. But it was also frustrating to watch her credit card company increase her credit limit continuously, so the cycle began again.

Yes, people need to take responsibility, it is partially their fault. But surely credit card companies are aware that some people are not doing that. And yet they continue to allow those people to keep on borrowing, instead of calling a halt and trying to make arrangements for the money to be paid back before things get completely out of hand. Responsible borrowing comes with responsible lending IMO.

Ursa Minor

Edited by Ursa Minor
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No it isn't taught in schools and therein lies the problem. I know how to balance my checkbook, understand APR's etc, but I didn't learn it at school. My parents are not great with money, they can balance a budget but don't seem to understand how much borrowing can cost.

I learnt it at school when they taught us about exponents at age eleven. When I heard the term "compound interest" in economics (admittedly not something most students do) then I understood it immediately. It's also something my parents - especially my father - bangs on about constantly.

The problem is that too many parents expect schools to teach life lessons.

Although I feel very sorry for these people, and for their parents, what can we do? If people want to be treated like adults, they will get hurt like adults.

And for those of you who have small children - constantly bang on about compound interest, starting today.

Edited by IP Newcomer
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No it isn't taught in schools and therein lies the problem. I know how to balance my checkbook, understand APR's etc, but I didn't learn it at school. My parents are not great with money, they can balance a budget but don't seem to understand how much borrowing can cost. They have no ablility to save at all. They think I am weird that I have savings, and don't understand where I get the urge to save and not splurge. We need to teach kids how to manage money (and debt especially if they want a degree).

A good friend of mine got into serious trouble a few years ago with debt. She was depressed and got into a cycle of feeling miserable about her personal circumstances and making herself feel better short term by splurging. It was frustrating to watch and I tried to get her to see that increasing her debt to unmanageable proportions was only going to make her feel worse in the longer term.  But it was also frustrating to watch her credit card company increase her credit limit continuously, so the cycle began again.

Yes, people need to take responsibility, it is partially their fault. But surely credit card companies are aware that some people are not doing that. And yet they continue to allow those people to keep on borrowing, instead of calling a halt and trying to make arrangements for the money to be paid back before things get completely out of hand. Responsible borrowing comes with responsible lending IMO.

Ursa Minor

I don't think teaching in schools is effective at all really.

I bet everyone on this forum was told/taught/demonstrated however you want to put it that smoking is bad for you and you'll die of cancer. You'll smell, and you'll have yellow fingers/teeth. I bet they were told this in school and maybe even from their parents if they had any. That didn't stop 20-25% of the population taking up the dreaded weed.

People (in general() it seems need to make their own mistakes before learning sinks in.

I take your point about the credit card companies upping the limit all the time. However, I still think it is the responsibility of the card holder to instruct them to reverse it, or cut the card up. The CC co is only trying to make even more cash in much the same way a dealer does with his junkies. At some stage the jun...sorry, debtor has to go cold turkey or sink into oblivion.

Deep down people know there is no such thing as free money, they all have their heads in the sand.

NDL

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Agree with that, whilst my parents did try and teach me financial discipline, I still ran up a fair debt at university.

After two years in full time emplioyment, I got them paid off,

and suddenly realised what a mug I had been.

My disposable incone went up about 20% the month after the last

payment was made, and apart from a car loan a couple ywears later

(good deal, I kept the car on the road for 10 years),

I have never borrowed money, nor been overdrawn.

Paying interest is dead money :)

ABB

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Agree with that, whilst my parents did try and teach me financial discipline, I still ran up a fair debt at university.

After two years in full time emplioyment, I got them paid off,

and suddenly realised what a mug I had been.

My disposable incone went up about 20% the month after the last

payment was made, and apart from a car loan a couple ywears later

(good deal, I kept the car on the road for 10 years),

I have never borrowed money, nor been overdrawn.

Paying interest is dead money :)

ABB

While I'm sure you had your fair share of fun at uni, at least in the grand scale of things this was an investment in your future, including your ability to earn.

It's when people rack up large debts with nothing to show but throw-away consumer goods, a diseased liver, and bulging midriff that you really have to wonder.

Anyway congrats on being debt free.

NDL

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Now I know why all those crap adverts for loans and mortgages have fat people in them.

what a nasty piece of works you are, i hope 1 day you find yourself in debt then you`ll understand better. i got in debt through little fault of my own. i moved from london (higher wages, no affordable property) to the south west(much lower wages) and found it increasingly difficult to cope, finding myself in the vicious circle of debt. i am very good at budgeting my money, but unfortunatly no matter how hard i tried i couldn`t cut back any further despite going without things such as clothes, entertainment, dental treatment, even basic household goods such as carpets, new bedding, curtains etc. i have now gone bankrupt with a view to making a fresh start. by the way i weigh 7 stone and am educated to degree level. :angry:

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