ingermany Posted February 27, 2018 Share Posted February 27, 2018 Guardian today: Struggling credit card holders could save £1.3bn under new rules https://www.theguardian.com/money/2018/feb/27/credit-card-holders-new-rules-fca FCA is starting to ramp up debt write offs to keep people borrowing and spending. Anything to stop house prices from adjusting. Your home is at risk if you don't repay your debts....or maybe not. More forbearance is on the way. The rules for creating and obtaining money via credit are being re-written and changes are apparently retrospective. Quote Link to comment Share on other sites More sharing options...
dougless Posted February 27, 2018 Share Posted February 27, 2018 It seems to be a scheme to reschedule the debt rather than eradicate it so not too much to worry about. Quote Link to comment Share on other sites More sharing options...
Freki Posted February 27, 2018 Share Posted February 27, 2018 It looks to me like it forces the creditor to do more effort to clear people's debt. If there is a write off, then someone is losing money. Risk increases, offering more debt becomes riskier, credit supply decreases. So no I don't see your mechanism coming into play.s Quote Link to comment Share on other sites More sharing options...
Majorpain Posted February 27, 2018 Share Posted February 27, 2018 Quote Under the new regime, which fully takes effect from 1 September, firms must contact customers once they have been in persistent debt for 18 months. This is defined as when a customer has paid more in interest, fees and charges than they have repaid of their borrowing. The firm will have to explain the benefits of increasing their payments, and tell them about where to get debt help and advice. After 27 months, the firm must send the customer a reminder if it looks like the situation is unlikely to improve in the coming months. They will also be given a warning that their card may ultimately be suspended if they do not change their behaviour. Once a consumer has been in persistent debt for 36 months, their provider will have to offer them a way to repay their balance over a reasonable period – typically between three and four years. For example, this could mean transferring the debt over to a lower-interest personal loan with set monthly payments. Seems quite reasonable to me. Quote Link to comment Share on other sites More sharing options...
longgone Posted February 27, 2018 Share Posted February 27, 2018 i just got offered a card with a 12k limit and 30 months no interest as long as the minimum is paid back each month. so i can spend for 2.5 years and just pay it off at the end. NUTS but that is the craziness to keep the plates spinning. Quote Link to comment Share on other sites More sharing options...
ftb_fml Posted February 27, 2018 Share Posted February 27, 2018 Sounds "interesting", were the bulk of one's liquid assets in paper money and one was interested in gaming the system... I guess it'd have significant repercussions for future borrowing eligibility though and I can't see one's limited cash assets to be enough to buy somewhere outright, no matter how spectacular the crash might be! Quote Link to comment Share on other sites More sharing options...
Doner Kebab Posted February 27, 2018 Share Posted February 27, 2018 55 minutes ago, longgone said: i just got offered a card with a 12k limit and 30 months no interest as long as the minimum is paid back each month. so i can spend for 2.5 years and just pay it off at the end. NUTS but that is the craziness to keep the plates spinning. Echoes of 2007. I've got £36k of credit cards (in case I get given 6 months to live) which were not even asked for and I've never used them apart from joing the odd porn site. Quote Link to comment Share on other sites More sharing options...
longgone Posted February 27, 2018 Share Posted February 27, 2018 1 minute ago, Sperm Donor said: Echoes of 2007. I've got £36k of credit cards (in case I get given 6 months to live) which were not even asked for and I've never used them apart from joing the odd porn site. i will it use it for day to day spending rather have my savings earning a meager increase than pay it off. Quote Link to comment Share on other sites More sharing options...
Noallegiance Posted February 27, 2018 Share Posted February 27, 2018 I used to work in a department for a well-known high street bank where I'd easily write off £1m per week of credit card debt. Every week. Easy come, easy go. Quote Link to comment Share on other sites More sharing options...
Guest Posted February 27, 2018 Share Posted February 27, 2018 One of my favourite topics in the UK today is debt and housing, it's one of the reasons I joined this site, though I think I am not allowed to start a thread yet on the subject, any subject. We are fast approaching £2 Trillion in personal debt, over 50% of property in the UK is fully paid up and mortgage free, some have profited hugely from manipulating the lower end of the property owning food chain, many also profited hugely from the past decade and the cheap EU slave labour and cheap Chinese goods. So my big question is where in the private lives of all those in the UK is all that borrowed money? Quote Link to comment Share on other sites More sharing options...
longgone Posted February 27, 2018 Share Posted February 27, 2018 20 minutes ago, Noallegiance said: I used to work in a department for a well-known high street bank where I'd easily write off £1m per week of credit card debt. Every week. Easy come, easy go. 20m profit a week probably too. Rough with the smooth Quote Link to comment Share on other sites More sharing options...
Ah-so Posted February 27, 2018 Share Posted February 27, 2018 4 hours ago, longgone said: i just got offered a card with a 12k limit and 30 months no interest as long as the minimum is paid back each month. so i can spend for 2.5 years and just pay it off at the end. NUTS but that is the craziness to keep the plates spinning. That's exactly what they want you to do - max up and then they charge full interest on the full balance knowing that very few will have put the money away. At 20% that is quite a lot of interest. Quote Link to comment Share on other sites More sharing options...
longgone Posted February 27, 2018 Share Posted February 27, 2018 4 minutes ago, Ah-so said: That's exactly what they want you to do - max up and then they charge full interest on the full balance knowing that very few will have put the money away. At 20% that is quite a lot of interest. for someone in debt though they are useful not that i am. they are using them to over pay on the mortgage average save is around 400-500 over the 2.5 years. i am going to use it to book some holidays this year. i have plenty put away but why bother to spend my own. realistically though you could move the full debt to another card for another 2 years or so without balance transfer fees or charges if you pick the right cards. i did this in my teens early 20`s had around 4k debt being moved for one card to the next for 5 years or more never paid any interest on it and you have the benefit of inflation to chip away at it. Quote Link to comment Share on other sites More sharing options...
NuBrit Posted February 27, 2018 Share Posted February 27, 2018 4 hours ago, longgone said: i just got offered a card with a 12k limit and 30 months no interest as long as the minimum is paid back each month. so i can spend for 2.5 years and just pay it off at the end. NUTS but that is the craziness to keep the plates spinning. I have maxed out a credit card with similar terms. All the proceeds are invested into kids savings accounts with rates from 3.5% to 4.5%. The balance of the card is due in 5 months before it accrues interest. I will be paying the lot of before then. I will then cancel the card then take out a new credit and repeat the same thing. I was trying to find the catch, but I haven't been able to do so. I have not a single fee or interest payment to virgin in the entire time. Quote Link to comment Share on other sites More sharing options...
Exiled Canadian Posted February 27, 2018 Share Posted February 27, 2018 1 hour ago, NuBrit said: I have maxed out a credit card with similar terms. All the proceeds are invested into kids savings accounts with rates from 3.5% to 4.5%. The balance of the card is due in 5 months before it accrues interest. I will be paying the lot of before then. I will then cancel the card then take out a new credit and repeat the same thing. I was trying to find the catch, but I haven't been able to do so. I have not a single fee or interest payment to virgin in the entire time. You may struggle to get another card. Back in the days when savings earned 5% I furnished my first flat using "24 months interest free credit" which I paid off in month 24 (from savings that had been earning 5% pa) before it clicked onto a 29.9% APR that was retrospective from the day of purchase. The next month I tried to buy a PC on a similar deal and was turned down for a "poor credit score" even though my only debt was my mortgage and that was up to date. I guess i'd been ear-marked as a customer unlikely to deliver a return. Quote Link to comment Share on other sites More sharing options...
jiltedjen Posted February 28, 2018 Share Posted February 28, 2018 10 hours ago, longgone said: for someone in debt though they are useful not that i am. they are using them to over pay on the mortgage average save is around 400-500 over the 2.5 years. i am going to use it to book some holidays this year. i have plenty put away but why bother to spend my own. realistically though you could move the full debt to another card for another 2 years or so without balance transfer fees or charges if you pick the right cards. i did this in my teens early 20`s had around 4k debt being moved for one card to the next for 5 years or more never paid any interest on it and you have the benefit of inflation to chip away at it. very clever. I would always be worried i get caught by some catch. Quote Link to comment Share on other sites More sharing options...
longgone Posted February 28, 2018 Share Posted February 28, 2018 1 hour ago, jiltedjen said: very clever. I would always be worried i get caught by some catch. you only used to get 9 months to a year for interest free balance transfers though not the 30 months or more you get now. you just need to watch the terms though some charge a balance transfer fee or remove the interest free period if you forget a monthly payment. some of these cards give you nectar points and quidco cashback when you apply so its already chipping away at the debt for free. Quote Link to comment Share on other sites More sharing options...
Quicken Posted February 28, 2018 Share Posted February 28, 2018 If this makes feckless customers less profitable for the banks, then they'll lend less to the feckless. Seems OK to me. Quote Link to comment Share on other sites More sharing options...
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