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Wave 3: The Credit Card And Auto Loans Unwind

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http://www.cbsnews.com/sections/i_video/ma...tml?id=4274678n

Summary:

1. Citigroup says default rates on its credit card products will soon reach record highs.

2. Capital one says credit card default rates have doubled from 3.5% to 7%.

3. Highest numbers of credit card late payments in history.

4. Predicted to go on for another year at least.

:o

It is only probable that the cc crisis will be the next to hit rock bottom. Of course the banks saw this some time ago and pushed to have cc debt removed from bankruptcy. Now you cannot default on cc debt. I truly feel sorry for all those that have been aggressively marketed to. Some here will say it is the fault of the consumer and to a point it is. However when all you are doing is trying to put food on the table you do what you must. This is just another attempt to eliminate the middle class. When everyone is broke, homeless and starving then the powers that be can do as they wish. The people will not be able to rise up. Bad times are coming and I feel that our country will never be the same. :(

Edited by poorman

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It is only probable that the cc crisis will be the next to hit rock bottom. Of course the banks saw this some time ago and pushed to have cc debt removed from bankruptcy. Now you cannot default on cc debt. I truly feel sorry for all those that have been aggressively marketed to. Some here will say it is the fault of the consumer and to a point it is. However when all you are doing is trying to put food on the table you do what you must. This is just another attempt to eliminate the middle class. When everyone is broke, homeless and starving then the powers that be can do as they wish. The people will not be able to rise up. Bad times are coming and I feel that our country will never be the same. :(

If you can't go bankrupt and you can't pay what happens then? Do you become a slave for the credit card company?

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Credit card and personal loans problems will finish this low interest off, now we are just passed the start of this credit crunch. i've been going on for months about the cresit card at its problems for the wider economy.

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I can see a lot of defaulting on car loans happening over here. Loads of people on average wages driving around in BMWs and Jags which must be on HP, and the monthly payments must be pretty expensive.

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It is only probable that the cc crisis will be the next to hit rock bottom. Of course the banks saw this some time ago and pushed to have cc debt removed from bankruptcy. Now you cannot default on cc debt. I truly feel sorry for all those that have been aggressively marketed to. Some here will say it is the fault of the consumer and to a point it is. However when all you are doing is trying to put food on the table you do what you must. This is just another attempt to eliminate the middle class. When everyone is broke, homeless and starving then the powers that be can do as they wish. The people will not be able to rise up. Bad times are coming and I feel that our country will never be the same. :(

A bit melodramatic! Not many people end up actually starving in the UK after all.

As for those who end up broke and homeless, ie forced to live within their (reduced) means, and, living in rented accomodation rather than some house they could never really afford, in many cases (though not all) they will have contributed to their own demise by having lived too lavishly on borrowed money for the past few years. All that spending of money they ain't earned has consequences but I doubt may of them will starve. They may even be forced to adopt healthier lifestyles which don't centre on shopping, exotic holidays, 4x4s, and a diet of Maccy D's ;)

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It is only probable that the cc crisis will be the next to hit rock bottom. Of course the banks saw this some time ago and pushed to have cc debt removed from bankruptcy. Now you cannot default on cc debt. I truly feel sorry for all those that have been aggressively marketed to. Some here will say it is the fault of the consumer and to a point it is. However when all you are doing is trying to put food on the table you do what you must.

An awful lot of cc debt has nothing to do with putting food on the table. In the case of a good many 20s and 30s it's the spoilt-brat sense of entitlement to everything they want now, and who cares if they can't afford it?

Daughter's friend owes over £30K, and she's still spending like no tomorrow, on clothes, make-up, constant going out. A whole load of stuff only yesterday - and she's calling my dd tight because she doesn't feel like blowing her savings on similar.

There are stacks more like this one - absolutely no concept of 'affording' anything - you want it, you just stick it on the credit card.

The only way they'll ever learn is to find themselves bereft of absolutely all plastic credit for a few years.

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It is only probable that the cc crisis will be the next to hit rock bottom. Of course the banks saw this some time ago and pushed to have cc debt removed from bankruptcy. Now you cannot default on cc debt. I truly feel sorry for all those that have been aggressively marketed to. Some here will say it is the fault of the consumer and to a point it is. However when all you are doing is trying to put food on the table you do what you must. This is just another attempt to eliminate the middle class. When everyone is broke, homeless and starving then the powers that be can do as they wish. The people will not be able to rise up. Bad times are coming and I feel that our country will never be the same. :(

When did this happen in the UK? I understand that in the US if you obtain a credit card fraudulently, or use it fraudulently (i.e. it can be proved that you used it without ever intending to pay it back) then it can be excluded from bankruptcy proceedings but am not aware of any similar legislation in the UK. Links ?

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What is totally bizarre is that they are now offering people with really bad credit ratings big unsecured loans! Have heard two reports this week of credit offers from high street banks to documented terrible credit risks. I think they are so desperate to get some current clean loans on the books even for a short time, to offset the bad loans they are currently having to adjust their risks for, that they have thrown out the rule book on who to lend to. When this part finally falls down it is going to be a double stinker.

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I can see a lot of defaulting on car loans happening over here. Loads of people on average wages driving around in BMWs and Jags which must be on HP, and the monthly payments must be pretty expensive.

Yeah, the guy who lives above me works in a warehouse, can't be on much more than minimum wage, yet he has an expensive Merc that's only 2 years old. I'm surprised he can even pay for the petrol costs since he seems to drive everywhere, even to the supermarket which is about 5 minutes walk away. He must have bought the car on credit.

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If you can't go bankrupt and you can't pay what happens then? Do you become a slave for the credit card company?

Interesting question ... indefinite garnishment of any wages you ever earn in the formal economy?

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When did this happen in the UK? I understand that in the US if you obtain a credit card fraudulently, or use it fraudulently (i.e. it can be proved that you used it without ever intending to pay it back) then it can be excluded from bankruptcy proceedings but am not aware of any similar legislation in the UK. Links ?

But for the most part people aren't obtaining them fraudulently . So even if there were a clause in there somewhere (not that Ihave heard of) basically it was just a bad loan risk in most cases. I think they are now at the point of trying to defer the inevitable and maybe with some generation of bankers getting out to leave it to the next.

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Yeah, the guy who lives above me works in a warehouse, can't be on much more than minimum wage, yet he has an expensive Merc that's only 2 years old. I'm surprised he can even pay for the petrol costs since he seems to drive everywhere, even to the supermarket which is about 5 minutes walk away. He must have bought the car on credit.

He works in a warehouse and drives everywhere in an expensive Merc and only gets minimum wage!!!!

Hmmmm I wonder what he could be doing....... Expensive items in this warehouse?

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Credit card and personal loans problems will finish this low interest off, now we are just passed the start of this credit crunch. i've been going on for months about the cresit card at its problems for the wider economy.

I have just never ever got it about credit cards. Even at the low point of base rates, credit card rates were 11.9% or more, and some are like 30%+ :blink: . I have only ever, for ~15 years x 12 months, paid off the balance in full. If I was not able to do this, I would not have bought the stuff in the first place.

Meanwhile I have racked up loads of "points" of various sorts though - thanks very much Mr credit card company. This has included 5000 air miles for one single use of a "lufthansa" card, loads of free cash, loads of Tescos vouchers, various other free tat, and a permanent line of interest free credit for 4-6 weeks.

But can't pay it back? No sympathy, sorry.

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  • 399 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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