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Mustard_Jones

Why Do The Banks Want Credit Card Repayed ?

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Hi all,

My girlfriend owes about 2 grand on her credit card to a high street bank at about 9% interest PA and pays the minimum payment every month.

On Saturday evening about 20:00 her bank called her and spent some time trying to persuade her to increase her payments as much as possible.

I would have thought the banks would want everyone to pay the minimum payment so that they can they can maximise their profits.

Instead it appears that they are spending their own cash to try to recover the debt as quickly as possible.

Does anybody have any idea what's going on ?

Thanks

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Hi all,

My girlfriend owes about 2 grand on her credit card to a high street bank at about 9% interest PA and pays the minimum payment every month.

On Saturday evening about 20:00 her bank called her and spent some time trying to persuade her to increase her payments as much as possible.

I would have thought the banks would want everyone to pay the minimum payment so that they can they can maximise their profits.

Instead it appears that they are spending their own cash to try to recover the debt as quickly as possible.

Does anybody have any idea what's going on ?

Thanks

They know the bond markets are about to go t1ts and push up interest rates across the board. This will mean instant default for many bank customers. They are desperately trying to rake as much cash owed in asap to make sure they get paid as much as possible, in a vain effort to bolster their balance sheets, before the whole sorry con implodes on them.

Edited by General Congreve

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They know the bond markets are about to go t1ts and push up interest rates across the board. This will mean instant default for many bank customers. They are desperately trying to rake as much cash owed in asap to make sure they get paid as much as possible, in a vain effort to bolster their balance sheets, before the whole sorry con implodes on them.

"surely you can't be serious..." are you talking UK now? IR up? What the...:unsure:

Edited by LittleSteroid

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"surely you can't be serious..." are you talking UK now? IR up? What the...:unsure:

From the Telegraph today...

http://www.telegraph.co.uk/finance/comment/liamhalligan/8196283/Market-alarm-as-US-fails-to-control-biggest-debt-in-history.html

To quote..

Debt service costs have reached such astronomical levels even though, over the past year and more, yields have been kept historically and artificially low by “quantitative easing (QE)” – in other words, Federal Reserve Chairman Ben Bernanke’s virtual printing press. Now borrowing costs are 28pc higher than a month ago, with the 10-year Treasury yield reaching 3.33pc last week, an already eye-watering debt service burden can only go up.

Few on this side of the Atlantic should feel smug. The eurozone’s ongoing sovereign debt debacle has pushed up Germany’s borrowing costs by 27pc over the last month – to 3.03pc. The market has judged that if Europe’s Teutonic powerhouse wants the single currency to survive, it will ultimately need to raise wads of cash to absorb the mess caused by other member states’ fiscal incontinence.

While the UK isn’t ensnared in monetary union, gilt yields have also spiralled 18pc since the start of November – to 3.55pc

Up, up and away we go! :ph34r:

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It could be a number of reasons such as:

-> The type of job she does could be deemed insecure. Perhaps there are impending job losses where she works, etc.

-> Her credit rating has just got worse. This could happen because she missed a payment elsewhere or went overdrawn on one of her other accounts.

-> The bank is actively trying to improve its own credit rating by reducing the number of customers they deem a high credit risk.

Hi all,

My girlfriend owes about 2 grand on her credit card to a high street bank at about 9% interest PA and pays the minimum payment every month.

On Saturday evening about 20:00 her bank called her and spent some time trying to persuade her to increase her payments as much as possible.

I would have thought the banks would want everyone to pay the minimum payment so that they can they can maximise their profits.

Instead it appears that they are spending their own cash to try to recover the debt as quickly as possible.

Does anybody have any idea what's going on ?

Thanks

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Hi all,

My girlfriend owes about 2 grand on her credit card to a high street bank at about 9% interest PA and pays the minimum payment every month.

On Saturday evening about 20:00 her bank called her and spent some time trying to persuade her to increase her payments as much as possible.

I would have thought the banks would want everyone to pay the minimum payment so that they can they can maximise their profits.

Instead it appears that they are spending their own cash to try to recover the debt as quickly as possible.

Does anybody have any idea what's going on ?

Thanks

Santander?

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Hi all,

My girlfriend owes about 2 grand on her credit card to a high street bank at about 9% interest PA and pays the minimum payment every month.

On Saturday evening about 20:00 her bank called her and spent some time trying to persuade her to increase her payments as much as possible.

I would have thought the banks would want everyone to pay the minimum payment so that they can they can maximise their profits.

Instead it appears that they are spending their own cash to try to recover the debt as quickly as possible.

Does anybody have any idea what's going on ?

Thanks

9%?

My creditcard company charges me 25% and 27% for cash. 9% is a good rate even for a normal loan.

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9%?

My creditcard company charges me 25% and 27% for cash. 9% is a good rate even for a normal loan.

That could be it. Maybe its a card that was locked in at 9%, and they are trying to wipe the debt so when she reapplies they can sell one of the normal 21% jobbies. Persuading borrowers to clear low interest charging debts first makes sense for lenders.

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That could be it. Maybe its a card that was locked in at 9%, and they are trying to wipe the debt so when she reapplies they can sell one of the normal 21% jobbies. Persuading borrowers to clear low interest charging debts first makes sense for lenders.

Think you've hit the nail on the head. Someone borrowing 2 grand is not likely to be in the big risk category at a bank unless they have a history of not paying on time.

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  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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