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To think credit card interest rates are an absolute scandal.

(70 Posts)
trixymalixy Sat 15-Oct-11 09:27:56

letter from DH's credit card company today saying the apr on his credit card is increasing from 18.9% to 27.9%!!!!!

How can they justify such a huge increase and charging nearly 30%!!

Thankful we have no balance on it as we used it for the 0% offer to buy a washing machine and have paid it off, but it's just piling on more misery when so many people are struggling financially with so many price rises and redundancies.

I think it's shocking and the government should tackle it.

BimboNo5 Sat 15-Oct-11 09:29:14

They are in it to make money though, nobody lends money for free!

trixymalixy Sat 15-Oct-11 09:29:29

I meant to say it's particularly shocking given the current extremely low interest rates.

trixymalixy Sat 15-Oct-11 09:30:19

True, but I think there should be a cap on how much they can charge above the bank of England base rate.

squeakytoy Sat 15-Oct-11 09:30:50

The government have no need to tackle it... nobody is really forced to use a credit card.

BimboNo5 Sat 15-Oct-11 09:32:06

My sentiments exactly squeaky. My tumble dryer is on its last legs, cant afford another at the moment, not going to get a credit card going to do that boring old fashioned thing- save up for another.

NinkyNonker Sat 15-Oct-11 09:33:00

I agree with all of you tbh.

Adversecamber Sat 15-Oct-11 09:33:43

Message withdrawn at poster's request.

trixymalixy Sat 15-Oct-11 09:34:06

Whoope do for you. Not everyone is financially savvy and when they are handing credit cards out like sweeties it is all too easy for people to get into trouble.

mollymole Sat 15-Oct-11 09:40:17

The government cannot hold the hand of those unable to control their own finances, people need to learn to take responsibility for their own decisions.
Can't afford it - do without until you can save for it.

CogitoErgoSometimes Sat 15-Oct-11 09:44:26

YANBU to think it's a high rate. But it's far more difficult to get a credit card now than it used to be, the rates are clearly stated and there's nothing to say that someone won't pay off their balance each month.

The 'pay day loan' business charges far, far more than a credit card. APR of 1737% isn't untypical. But that's a product designed for very small amounts of money which are usually paid back in a few weeks.

As for government involvement - no-one likes a nanny state. They have to treat people like grown-ups i.e make companies give clear information & penalise those that are swindlers but otherwise get out of the way.

rogersmellyonthetelly Sat 15-Oct-11 09:45:03

That's nothing. Vanquish recently raised my limit to 4.5k and in the small print at the bottom it said the interest rate was now 72%

rogersmellyonthetelly Sat 15-Oct-11 09:45:52

That's nothing. Vanquish recently raised my limit to 4.5k and in the small print at the bottom it said the interest rate was now 72%

mosschops30 Sat 15-Oct-11 09:46:09

Surely though anyone with any sense has a 0% credit card. Why pay interest when you dknt have to?
Ive card tarted for the last 5 years and never paid a bit of interest.

rogersmellyonthetelly Sat 15-Oct-11 09:46:35

Sorry for the double post, phone is having a
Bit of a moment.

mousesma Sat 15-Oct-11 09:46:38

I think interest rates should be more clearly explained when you take out a credit card i.e. if you borrow X and repay it over Y months it will cost you Z to protect those who aren't financially savvy.
However I don't have a problem with credit card interest rates, no one has to use a credit card and if you do use one you can pay it off immediately with no penalties. People have one of three options: do without, save up or buy and suffer the interest and I think that is fair.

trixymalixy Sat 15-Oct-11 09:55:47

I agree moss chops, we've never paid any interest on our credit card either. Why dip into our savings and lose the interest when if you manage it carefully you can make your purchases interest free.

BUT it's all to easy for people to be drawn into the 0% and not realise how much they are going to be charged if they don't pay it off in time. And then to find that the rate has gone up by nearly 50% overnight!!!

Those payday loan aprs always make me shock as well. I always think why on earth would anyone ever use the,, but I guess people must be in desperate straights.

It's just preying on the desperate and those that can least afford those kind of rates.

TheSecondComing Sat 15-Oct-11 09:57:30

Message withdrawn at poster's request.

mosschops30 Sat 15-Oct-11 10:02:29

Sorry idont buy into that 'its too easy to get sucked in and then not pay it off' etc etc
You know, or make a note of when you took a card out, you know that you have x amount of months to pay it off. If for some reason you cant do it, then you balance transfer it onto another 0% card.

I just get tired of seeing idiots on the tv wondering how they got into debt 'well i took this out which had 1000% apr then couldnt pay it so i took out another one at 2000% apr to pay it off blah blah <no sympathy emoticon>

trixymalixy Sat 15-Oct-11 10:05:03

Yes, but what if you had planned to pay it off but something unexpected happened like losing your job and you then found you couldn't?

mosschops30 Sat 15-Oct-11 10:06:50

But you have a bad credit rating from fucking up payments.

Dont give me that sob story, same people on the tv pleading poverty with a 50 inch plasma in the background. I dont have a 50 inch plasma because i cant bloody afford one.

Trouble is everyone wants everything rwgardless, put it on credit then cant pay it off.
Im not saying thats everyones situation and yes if you have a boiler or car repair then you need a 0% card, but even my mother on a basic pension can get one, its not aboyt earning a fortune

trixymalixy Sat 15-Oct-11 10:06:54

And not everyone understands how they work. Thisnis why people are calling for more education on how to manage finances in schools, because people don't understand.

mosschops30 Sat 15-Oct-11 10:09:13

What about if the sky falls in and you cant pay it off?

Lots of what ifs, but mostly is people just thinking someone elae will deal with the fact that ive pent a frigging fortune in toys r us and cant pay it, the moan about a huge rise in interest.

Take ome responsibility people

altinkum Sat 15-Oct-11 10:10:10

Message withdrawn at poster's request.

mosschops30 Sat 15-Oct-11 10:11:49

Poor excuse!

I dont buy stocks and shares because i dont understand it or have the money. If i did and then lost it all it wouldnt matter that i didnt understand it would be tough.

If you dont understand it, dont do it. Or look at something simple like money saving expert

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