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Bbc This Morning, Record Credit Card Debt Warning Over 0% Deals

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Watching BBC Breakfast this morning and Steph was doing a piece on credit cards stating record debt on them and warning over the dangers of 0% deals.

Apparently many people are shocked to learn these deals can end if you don't make the minimum repayment, go over your credit limit etc...

The nice man she was talking too highlighted that when the deal ends the interest rate rockets... It was really enlightening listening too it.....

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Watching BBC Breakfast this morning and Steph was doing a piece on credit cards stating record debt on them and warning over the dangers of 0% deals.

Apparently many people are shocked to learn these deals can end if you don't make the minimum repayment, go over your credit limit etc...

The nice man she was talking too highlighted that when the deal ends the interest rate rockets... It was really enlightening listening too it.....

Hmmm....the BBc is saying...Don't buy stuff with low interest rates because when the rate ends you will be stuff.....sounds about right.

You have been warned.

:rolleyes:

Edited by TheCountOfNowhere

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I have never had a credit card and up until August / September had not had a offer come through the letterbox for about two years or more, but in the last two months I have had about one a week

They seem to be pushing them hard again ,my nephew went to santander to open a cash isa to put their 18th birthday money in and come out with a credit card that he said he had refused on more than one occasion, i find this very reckless as he`s in college and only receives £30 a week EMA

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I have never had a credit card and up until August / September had not had a offer come through the letterbox for about two years or more, but in the last two months I have had about one a week

They seem to be pushing them hard again ,my nephew went to santander to open a cash isa to put their 18th birthday money in and come out with a credit card that he said he had refused on more than one occasion, i find this very reckless as he`s in college and only receives £30 a week EMA

Ah, that'd be your good old Dynamic Financial Sector Innovation, right there. Handing out credit cards to 18 year olds with no visible means of support. Very Innovative. Definitely Dynamic. When they are doing things like that, it's hard to imagine that these selfsame institutions seem to have one mis-selling scandal after another, when not running to the taxpayer for more money 'cause they ran out or being caught smoking crystal meth..

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Watching BBC Breakfast this morning and Steph was doing a piece on credit cards stating record debt on them and warning over the dangers of 0% deals.

Apparently many people are shocked to learn these deals can end if you don't make the minimum repayment, go over your credit limit etc...

The nice man she was talking too highlighted that when the deal ends the interest rate rockets... It was really enlightening listening too it.....

Inform, educate and entertain. 0 out of 3.

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Ah, that'd be your good old Dynamic Financial Sector Innovation, right there. Handing out credit cards to 18 year olds with no visible means of support. Very Innovative. Definitely Dynamic. When they are doing things like that, it's hard to imagine that these selfsame institutions seem to have one mis-selling scandal after another, when not running to the taxpayer for more money 'cause they ran out or being caught smoking crystal meth..

....but, but what else can continue to prop the economy up without people spending money they don't have, and a fair proportion of them will not repay or will be unable to repay, all built in?....everyone is a winner....aren't they? ;)

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I was in the Halifax this morning taking out £500 over the counter (didn't realise the ATM limit is now up to £500 from £300), as she gave me the money she asked if I had any debt I paid interest on because I could transfer it to them on a new credit card.

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Inform, educate and entertain. 0 out of 3.

I didn't see it but I assume Steph entertained by wearing a tight pencil skirt, tights and knee length boots - sort of thing that appeals to ex public school boys in the BBC management and banksters in the City IMPO.

I tend not to listen to hear as she is good eye candy - isn't that what being a female presenter on telly is all about?

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I was in the Halifax this morning taking out £500 over the counter (didn't realise the ATM limit is now up to £500 from £300), as she gave me the money she asked if I had any debt I paid interest on because I could transfer it to them on a new credit card.

I usually just say " I don`t do debt, and I don`t watch the Noddy Box", then wink at them and walk out.

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Just put my wife on my credit card account, they sent her a new card, credit limit £8000

What do they think she going to buy ? A buy to let property deposit ?

:lol:

Just on the phone getting it reduced, they seem surprised that I want to reduce it to £500 and keep saying what "we'll do is...."

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Watching BBC Breakfast this morning and Steph was doing a piece on credit cards stating record debt on them and warning over the dangers of 0% deals.

Apparently many people are shocked to learn these deals can end if you don't make the minimum repayment, go over your credit limit etc...

The nice man she was talking too highlighted that when the deal ends the interest rate rockets... It was really enlightening listening too it.....

0% credit cards are not 0% anymore. They all carry a fee of 3-4%. However terms are nearly aleways 12-18months now so you can effectively borrow for around 1 - 4% p/a.

You always lose a month making sure you balance transfer from expiring deal to new deal but it's very cheap borrowing for long term purchases and some overspending. £6k family holiday for example can easily be financed over 12 months for 1.5% interest. Try beating that rate.

For the middle class with secure jobs, own houses, good family income (£60k+) and excellent credit rates (and if you settle 2-3 credit accounts in full every 12-18 months why wouldn't you have a good credit rating?), 0% creidt card deals are our "Wonga" but with very cheap rates of borrowing.

You always max out, you always port to a new card on the last month of the old one expiring, and you always apply and get the best deals on offer. Cancel old cards the month after the 0% deal has ended and you blalance transfered it.

And as long as you have a Natwest Gold / Platinum card and an MBNA card you will "Always" have a 12 month 3-3.5% fee , 0% balance transfer deal open as these brands has "perma" 12 months offers that reset monthly. The trick is every 6-12 months just to bung a few hundred quid on one of these deals to keep them interested then clear it of 0% over 11 months. You always have 0% available.

If have financed my familes borrowing this way for about 15 years now, are rarely declined for the best deals on the market, have never defaulted or paid the full interest the month after the offer expires and because of this have never paid more than 2% p/a on our short term borrowing.

Like all financial products if you understand them, and use them properly to your advantage they are great assets to your lifestyle and Wealth. I say wealth because one of the reasons the wealthy stay wealthy is they dont borrow at high rates or use capitial to finance spending when the capital can be earning 4-6%+ income invested. You borrow at 1-2% and leave the capitial invested earning 4-6%.

M

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Just put my wife on my credit card account, they sent her a new card, credit limit £8000

What do they think she going to buy ? A buy to let property deposit ?

:lol:

Just on the phone getting it reduced, they seem surprised that I want to reduce it to £500 and keep saying what "we'll do is...."

I got a credit card a few years ago for one extra step of security when purchasing online, i wanted the minimum £500, they offered £5000, it took an hour to get them to work out how to do less than the computer said i could have, a year later it got automatically upped to £2000, i again phoned to get it reduced but it took them 30mins this time to work out how. I have asked if a note csn be added to my account to not have my limit increased, but they told me it was automatic, and i would have to phone in every time

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Apparently the banks (or at least some of them) have recently increased cash withdrawal limits on instant access savings deposits from £500 to £2000.

It all seems to be timed for the elections.

Edited by billybong

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Just put my wife on my credit card account, they sent her a new card, credit limit £8000

What do they think she going to buy ? A buy to let property deposit ?

:lol:

Just on the phone getting it reduced, they seem surprised that I want to reduce it to £500 and keep saying what "we'll do is...."

Ha.....you might NEED it in the future....go on spend it, you know you want to. :P

I can understand people wanting to reduce the limits they are unlikely to want to use.....what if lost or stolen someone could have a great time spending nobodies money. ;)

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I got a credit card a few years ago for one extra step of security when purchasing online, i wanted the minimum £500, they offered £5000, it took an hour to get them to work out how to do less than the computer said i could have, a year later it got automatically upped to £2000, i again phoned to get it reduced but it took them 30mins this time to work out how. I have asked if a note csn be added to my account to not have my limit increased, but they told me it was automatic, and i would have to phone in every time

Computer says you are insufficiently indebted. You do realise that there is effectively an algorithm out there working out exactly how much debt you have to be in to maximise their profits and how to push you towards it..

Next step is that they borrow the money on your behalf and mail the cash to you. Obviously, if you don't want it you can just take the cash back to the branch.

Step after that is that they send the cash to Amazon, who pick out stuff that they think you want and mail it to you...

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0% cards are great, I get a car allowance and have to drive a certain age/original list price value of car

so effectively have to change my car every 3 years (assuming buying a 1 year old car)

I have bought my last 2 cars on them.....18months at 0% (you are usually charged 2.5% fee for this)

pay the minimum balance + a monthly amount into an ISA, roll the debt over to a

different cc provider for another 18 months say for 2.5% fee

again pay the monthly minimum and pay a monthly amount into an ISA pay off the

balance at the end of 3 years, rinse an repeat....

not sure what the exact APR is to finance the car this way, once you factor in the interest

earned in the ISA but I don't think its possible to finance a car cheaper

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0% credit cards are not 0% anymore. They all carry a fee of 3-4%. However terms are nearly aleways 12-18months now so you can effectively borrow for around 1 - 4% p/a.

You always lose a month making sure you balance transfer from expiring deal to new deal but it's very cheap borrowing for long term purchases and some overspending. £6k family holiday for example can easily be financed over 12 months for 1.5% interest. Try beating that rate.

For the middle class with secure jobs, own houses, good family income (£60k+) and excellent credit rates (and if you settle 2-3 credit accounts in full every 12-18 months why wouldn't you have a good credit rating?), 0% creidt card deals are our "Wonga" but with very cheap rates of borrowing.

You always max out, you always port to a new card on the last month of the old one expiring, and you always apply and get the best deals on offer. Cancel old cards the month after the 0% deal has ended and you blalance transfered it.

And as long as you have a Natwest Gold / Platinum card and an MBNA card you will "Always" have a 12 month 3-3.5% fee , 0% balance transfer deal open as these brands has "perma" 12 months offers that reset monthly. The trick is every 6-12 months just to bung a few hundred quid on one of these deals to keep them interested then clear it of 0% over 11 months. You always have 0% available.

If have financed my familes borrowing this way for about 15 years now, are rarely declined for the best deals on the market, have never defaulted or paid the full interest the month after the offer expires and because of this have never paid more than 2% p/a on our short term borrowing.

Like all financial products if you understand them, and use them properly to your advantage they are great assets to your lifestyle and Wealth. I say wealth because one of the reasons the wealthy stay wealthy is they dont borrow at high rates or use capitial to finance spending when the capital can be earning 4-6%+ income invested. You borrow at 1-2% and leave the capitial invested earning 4-6%.

M

Thing is most people seem NOT to understand this route. And they end up requiring more and more credit to service their debt. I blame Martin Lewis for all this 'playing the game' with credit cards crapp. My advice to people is to ditch the credit cards completely. Use a debit card. Don't get sucked in to playing the banks game. Do you remember those days when people actually paid for things using REAL cash? Seems a long time ago.

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Thing is most people seem NOT to understand this route. And they end up requiring more and more credit to service their debt. I blame Martin Lewis for all this 'playing the game' with credit cards crapp. My advice to people is to ditch the credit cards completely. Use a debit card. Don't get sucked in to playing the banks game. Do you remember those days when people actually paid for things using REAL cash? Seems a long time ago.

+1

ML's site has probably encouraged more people to play games they don't really understand.

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Thing is most people seem NOT to understand this route. And they end up requiring more and more credit to service their debt. I blame Martin Lewis for all this 'playing the game' with credit cards crapp. My advice to people is to ditch the credit cards completely. Use a debit card. Don't get sucked in to playing the banks game. Do you remember those days when people actually paid for things using REAL cash? Seems a long time ago.

I ditched my credit cards back in 2005 as I didn't use it. The following year I traveled to Asia and had problems checking into half decent hotels (4* up) without a credit card as they need to swipe it in case I did a runner. They didn't like me paying cash and insisted on a largish (£100+) deposit on top of the room cost on checkin.

Also try hiring a car in the UK without a credit card. Most refuse as they want the security in case you smash it so they can just help themselves to the repair cost from your credit card.

Life without a credit card just became too difficult and I now have three.

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Watching BBC Breakfast this morning and Steph was doing a piece on credit cards stating record debt on them and warning over the dangers of 0% deals.

Apparently many people are shocked to learn these deals can end if you don't make the minimum repayment, go over your credit limit etc...

The nice man she was talking too highlighted that when the deal ends the interest rate rockets... It was really enlightening listening too it.....

You've missed something, which is once you miss a minimum payment the credit card company can amend your credit record, which will mean that you'll no longer be able to move the balance to another 0% deal, and have to pay down the balance at whatever rate it reverts to once you breach the terms of the deal that entitle you to the teaser rate.

It's almost like they'd thought this thing through beforehand.

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I ditched my credit cards back in 2005 as I didn't use it. The following year I traveled to Asia and had problems checking into half decent hotels (4* up) without a credit card as they need to swipe it in case I did a runner. They didn't like me paying cash and insisted on a largish (£100+) deposit on top of the room cost on checkin.

Also try hiring a car in the UK without a credit card. Most refuse as they want the security in case you smash it so they can just help themselves to the repair cost from your credit card.

Life without a credit card just became too difficult and I now have three.

What? So I have to travel to Asia to really appreciate what being a credit card debt slave is all about? No thank you! Sounds like you've been well and truly hooked on the drug that is a CREDIT CARD. I ditched my credit cards 2 years ago...never looked back since.

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