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Credit Card Holders Face 'crippling' Interest Rates


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http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/7245125/Credit-card-holders-face-crippling-interest-rates.html

The average rate of interest has now climbed to 18.8 per cent, the highest since 1998, with some card holders being forced to pay as much as 46 per cent in interest.

No matter, the HPI will cover any interest incurred on the credit card used to put down a deposit.

It's all part of the price, taking a risk, rising up, staking a claim, moving towards BTL freedom.

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/7245125/Credit-card-holders-face-crippling-interest-rates.html

No matter, the HPI will cover any interest incurred on the credit card used to put down a deposit.

It's all part of the price, taking a risk, rising up, staking a claim, moving towards BTL freedom.

I would really love to live without credit cards (as most people did prior to the 80's). However, just try getting a hire car or booking a flight over the phone.....

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I would really love to live without credit cards (as most people did prior to the 80's). However, just try getting a hire car or booking a flight over the phone.....

Where's the problem? I already use the debitcard anytime there's a creditcard surcharge for something.

I love my creditcard. Sheer convenience, no charges, no interest, and the icing on the cake, a small cashback. And paid by a direct debit that goes out of my account just a day or two after the monthly salary payment has gone in.

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Where's the problem? I already use the debitcard anytime there's a creditcard surcharge for something.

I love my creditcard. Sheer convenience, no charges, no interest, and the icing on the cake, a small cashback. And paid by a direct debit that goes out of my account just a day or two after the monthly salary payment has gone in.

I'd love to but the "Interac" Canadian debit system is generally not accepted on the phone outside Canada.... in my experience. Plus the "fraud protection" doesn't seem as robust with debit cards. I might look into it a little more....

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I would really love to live without credit cards (as most people did prior to the 80's). However, just try getting a hire car or booking a flight over the phone.....

Interest rates for those already introuble are apalling and I speak as one who uses credit wisely (I pay it off monthly). In the US now you can refuse a credit card rate increase-they just close it out and you pay the minimum. If this happened to me I would just buy a pre-paid card for convenience and the fact that hotels by and large won't take cash. Ridiculous but true. Wonder how much money is being kept out of the economy by going straight to loan sharks like Visa?

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Interest rates for those already introuble are apalling and I speak as one who uses credit wisely (I pay it off monthly). In the US now you can refuse a credit card rate increase-they just close it out and you pay the minimum. If this happened to me I would just buy a pre-paid card for convenience and the fact that hotels by and large won't take cash. Ridiculous but true. Wonder how much money is being kept out of the economy by going straight to loan sharks like Visa?

Lenders in the UK now have to offer a rate freeze as well as a rate increase. This became standard practice since Jan 2008:

"These will always include the option to close the account and repay the remaining balance at the existing rate of interest, within a reasonable period, having regard to the existing level of minimum payments and the customer’s financial situation. Where we offer alternative lending products, we may also provide the option to transfer the balance to such a product at the existing (or lower) interest rate."
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Lenders in the UK now have to offer a rate freeze as well as a rate increase. This became standard practice since Jan 2008:

close one, I bet they all close in months....a small interbank flag on the credit score maybe?

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close one, I bet they all close in months....a small interbank flag on the credit score maybe?

I think the raises are aimed at those who need a CC for their day to day living, those who cannot close their accounts and so just have to accept the higher rates and whose credit scores are too screwed to be able to move the debt somewhere cheaper. Nasty debt spiral really as raising rates will increase defaults so rates will go higher for existing customers dragging more into struggling to pay and so on.

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I think the raises are aimed at those who need a CC for their day to day living, those who cannot close their accounts and so just have to accept the higher rates and whose credit scores are too screwed to be able to move the debt somewhere cheaper. Nasty debt spiral really as raising rates will increase defaults so rates will go higher for existing customers dragging more into struggling to pay and so on.

think about what you just said....rises are AIMED at those that NEED their credit for day to day living.........bankers are evil.

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think about what you just said....rises are AIMED at those that NEED their credit for day to day living.........bankers are evil.

Hook then gouge.

What do you think all those zero percent credit cards were about, the plan was to get as many people as deeply in debt as possible and then crank the rates up when when they were over their head and unable to get out from under their debt. Pretty much the same with the mortgage market. Except the plan didn;t quite work that way.

When those deals were around it was alreadya sign that the banking system was already dangerously out of control, it was ignored by the government and central bank, becuase as the crooks they are they were in on the plan and couldn't care less as short term it suited their goals and long term they always knew that they would get the taxpyer to foot the bill if their mates in the banks overcooked it and blew themselves up.

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I'd love to but the "Interac" Canadian debit system is generally not accepted on the phone outside Canada.... in my experience. Plus the "fraud protection" doesn't seem as robust with debit cards. I might look into it a little more....

Maybe look into getting a pre-paid credit card. Available in the UK, but also popular in the US so they may well be available in Canada:

http://www.moneysupermarket.com/c/prepaid-cards/guide/

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think about what you just said....rises are AIMED at those that NEED their credit for day to day living.........bankers are evil.

Yes, indeed.

And according to this article, with banks turning down 57% of firms for loans, this is forcing some of them to turn to credit cards.

http://www.bloomberg.com/apps/news?pid=20601102&sid=ad8q7psR3uSw

U.K. Banks Reject 57% of Firms Loan Requests, Lobby Group Says

Feb. 16 (Bloomberg) -- U.K. banks rejected 57 percent of companies’ requests for credit last year, forcing some to turn to credit cards for financing, according to a survey by the Institute of Directors, an employers’ lobby group.

The findings, which will be submitted to the government, contradict claims by banks that they are meeting the majority of demand for loans, the Institute said today in a statement. This is the first time the Institute collected data on the scarcity of credit, said spokesman Alistair Tebbit.

Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc, the two biggest banks bailed out by the U.K. government, have failed to meet legally binding pledges to increase lending, lawmakers said in a report last week. Banks say the lending slowdown is largely the result of a drop in demand, a consequence of the recession.

“The nationalized and semi-nationalized banks owe their existence to us, the taxpayer, and they must make good on their commitments to increase lending at reasonable rates,” Liberal Democrat Treasury spokesman Vince Cable said in response to the Institute of Directors’ figures.

The shortage of credit forced some companies to turn to unsecured loans, the survey found. About 20 percent turned to credit cards for some portion of their funding in the past year, as those who received bank loans dropped to 28 percent from 45 percent in 2001 and the portion accessing overdrafts fell to 36 percent from 40 percent, the Institute said.

The Institute surveyed 1,045 company directors in December, with a quarter saying they had applied for bank loans in the past year. Of those, 57 percent were rejected, the survey found.

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Yes, indeed.

And according to this article, with banks turning down 57% of firms for loans, this is forcing some of them to turn to credit cards.

Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc, the two biggest banks bailed out by the U.K. government, have failed to meet legally binding pledges to increase lending :lol::lol::lol: , lawmakers said in a report last week.
“The nationalized and semi-nationalized banks owe their existence to us, the taxpayer, and they must make good on their commitments to increase lending at reasonable rates,” Liberal Democrat Treasury spokesman Vince Cable said in response to the Institute of Directors’ figures.

This gets better

how did we end up with idiots running the Country. I would quite happily pay these politicians to just do nothing - the economy would be in a far better shape if they did

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Where's the problem? I already use the debitcard anytime there's a creditcard surcharge for something.

When paying for flights/holidays etc or anything else which you don't receive immediately, it's worth paying the credit card surcharge because, for example, if your holiday firms goes bust, you can claim the money back fro your credit card company.

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When paying for flights/holidays etc or anything else which you don't receive immediately, it's worth paying the credit card surcharge because, for example, if your holiday firms goes bust, you can claim the money back fro your credit card company.

Yes, and quite a few offer some kind of free basic travel insurance.

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Hook then gouge.

What do you think all those zero percent credit cards were about, the plan was to get as many people as deeply in debt as possible and then crank the rates up when when they were over their head and unable to get out from under their debt. Pretty much the same with the mortgage market. Except the plan didn;t quite work that way.

When those deals were around it was alreadya sign that the banking system was already dangerously out of control, it was ignored by the government and central bank, becuase as the crooks they are they were in on the plan and couldn't care less as short term it suited their goals and long term they always knew that they would get the taxpyer to foot the bill if their mates in the banks overcooked it and blew themselves up.

"When a bankster doth get into trouble free money shalt be thrown at him until he is again with wealth.

When a poor man doth get into trouble the same bankster shalt gouge him until he becometh destitute"

Goodwins letter to the politicians Chap 2 Versus 7-8.

Edited by Le Karma Rouge
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When paying for flights/holidays etc or anything else which you don't receive immediately, it's worth paying the credit card surcharge because, for example, if your holiday firms goes bust, you can claim the money back fro your credit card company.

Done that once or twice, but not often. Some people get in-sewer-ants for that kind of thing.

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Just because you have a credit card doesn't mean you have to borrrow on it. I've had one for most of my adult life and always paid it off in full each month. And the Tesco loyalty card points I get on it pays for my MOT and RAC membership each year, too!

There are certain things you do need a CC for. Most hotels and car hire places won't accept a debit card without deducting a hefty whack from it as a deposit first ($500 is the norm in most American hotels), and some won't accept a DC at all. As others have noted, the insurance on purchases over £100 makes it a very good idea to make major purchases (e.g. an air ticket or a large white goods purchase) with a CC. The CC fee that most airlines charge is worth it for that, IMO. But you can do all that without ever paying a penny in interest.

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18% average? some people must have very low interest rates, mine is 34%.

No your just a chav with no money. :P

You must have one crap credit rating.

No equity in the house? Nothing for the bankster to seize?

For those already in debt with these cards it would appear that the debt compound spiral is looming.

I always pay mine off at the end of each month. The only time I have done is when I've made a major purchase and used the balance transfer system to find a 0% card. Since all of this mess started I've now saved up before buying so I'm not taking on more debt.

I should report immediately to the nearest debt re-education centre.

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Mine's curently 46%. Never paid a bean in interest. Currently contemplating whether to book our annual holiday in America or Australia, in first class for the flights, courtesy of the credit card and all the poor saps who do pay 46% interest.

only 46% due to assumption on average carrying balance plus annual fee though. Save your miles and go for club, there is not much difference tbh.

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