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    UK consumer debt levels are among the highest in the world. Our savings rate is fairly low as well. How are these points acceptable?

    Surely Brown, and Cameron since it's likely by summer next year he would be the PM, should be tackling these things. IMO, these things should be done:

    - Outlaw credit cards. Nobody needs one, and the high consumer debt levels show that people cannot use them responsibly. Our economy is in recession largely due to excessive lending/borrowing.

    - if consumers should have credit, then force credit card companies to strip credit cards from persons who lack the means to pay off their debts responsibly.
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    (Original post by rajandkwameali)
    - Outlaw credit cards. Nobody needs one, and the high consumer debt levels show that people cannot use them responsibly. Our economy is in recession largely due to excessive lending/borrowing.
    Some people cannot use them responsibly.
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    my credit card gets me nectar points. I got £70 free shopping last xmas. and I haven't paid a penny to the credit card company for it!!
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    There are plenty of people who manage their credit cards perfectly well. Why should the actions of stupid people living beyond their means impact on everyone else.
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    I have a pre pay credit card, which means that I can only spend what I have on the card, just like a debit card so I cannot get in to any debt with it. I am trying to save up for christmas and this may be the only way I can afford to do it.
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    (Original post by Student2806)
    Some people cannot use them responsibly.
    :ditto: In fact, I'd say that the majority of people use them with no problem.

    There's perhaps some scope for credit limits being set at lower levels, but overall, credit cards are a very useful tool. They're a convenient form of payment, less readily stolen than cash and can ease cash flow difficulties when the interest-free period is exploited properly. Plus, as Tayla says, you can get reward points and/or cashback on many cards, which while not usually a huge amount is certainly a nice extra benefit.
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    (Original post by Student2806)
    Some people cannot use them responsibly.
    who is to say it's only "some" people?

    UK consumer debt is over 100% of GDP. So it's only a handful of persons who have, or are contributing to, this debt?
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    (Original post by rajandkwameali)
    who is to say it's only "some" people?

    UK consumer debt is over 100% of GDP. So it's only a handful of persons who have, or are contributing to, this debt?
    So you're saying everyone who has a credit card uses it irresponsibly?
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    Woo! :woo: And all our debts should be cancelled! :yes:
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    I'm with the OP.

    (Original post by Student2806)
    So you're saying everyone who has a credit card uses it irresponsibly?
    Perhaps not, but a high number of people seem to be incapable of using it 'responsibly'. My question is, why do these cards have to exist in the first place? What do they achieve that cannot be achieved by a debit card other than providing an easy way for people to get into debt?
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    (Original post by nexttime)
    Perhaps not, but a high number of people seem to be incapable of using it 'responsibly'. My question is, why do these cards have to exist in the first place? What do they achieve that cannot be achieved by a debit card other than providing an easy way for people to get into debt?
    Here's a big one - protection under the Consumer Credit Act doesn't apply for debit card payments.
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    I don't think they should be banned BUT I think that banks should be much more careful when handing them out..

    I rang up my bank (HSBC) a few months ago to discuss my overdraft (I'm a student and I'm £1400 into my £1500 overdraft) and when I rang they offered me a credit card. I asked if they were being serious and could see how much debt I was already in, that annoyed me quite a lot.. if Banks can see that their customers are already struggling they do not need to offer them a 'way out' that could potentially be a lot more costly!
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    Yes they are doing more harm then good hence why we are in a recession
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    (Original post by princessnavi22)
    I don't think they should be banned BUT I think that banks should be much more careful when handing them out..

    I rang up my bank (HSBC) a few months ago to discuss my overdraft (I'm a student and I'm £1400 into my £1500 overdraft) and when I rang they offered me a credit card. I asked if they were being serious and could see how much debt I was already in, that annoyed me quite a lot.. if Banks can see that their customers are already struggling they do not need to offer them a 'way out' that could potentially be a lot more costly!
    Yes, agreed. There's nothing wrong with credit card's per se, but many banks have been giving out excessive credit limits to people who can't afford them. If these limits were set sensibly, the problem would be much less of an issue than it now is.
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    (Original post by Illusionary)
    Here's a big one - protection under the Consumer Credit Act doesn't apply for debit card payments.
    Why not? Change the law...?

    EDIT: hang on, that law seems to be referring to the responsible handing out of credit - why would a debit card need to be covered by that?

    I maintain that credit cards achieve nothing but ruining the finances of the unaware.
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    (Original post by Illusionary)
    Yes, agreed. There's nothing wrong with credit card's per se, but many banks have been giving out excessive credit limits to people who can't afford them. If these limits were set sensibly, the problem would be much less of an issue than it now is.
    I dont agree nor disagree, I come from a poor family so its hard to get credit or you get silly tiny limits because we have none we cant get any!

    I know some years when my parents have had an unexpected bill and despite NEVER being overdrawn at bank and even having minor savings they ask for say a £100 overdraft and they are turned down! Compared with some students I know who get like £500 limits or even £1000 when others(like myself) have 2 credit cards with £200 limits and cant get more despite never missing a payment or being over the limits!

    The credit system is terrible it doesnt take the right things into account.
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    (Original post by princessnavi22)
    I don't think they should be banned BUT I think that banks should be much more careful when handing them out..

    I rang up my bank (HSBC) a few months ago to discuss my overdraft (I'm a student and I'm £1400 into my £1500 overdraft) and when I rang they offered me a credit card. I asked if they were being serious and could see how much debt I was already in, that annoyed me quite a lot.. if Banks can see that their customers are already struggling they do not need to offer them a 'way out' that could potentially be a lot more costly!
    Why should they be kept at all then?
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    (Original post by Student2806)
    So you're saying everyone who has a credit card uses it irresponsibly?
    I'm saying that there has to be a problem somewhere, given how much debt there is.
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    Credit can be a wonderful servant or a cruel mistress.
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    (Original post by rajandkwameali)
    UK consumer debt levels are among the highest in the world. Our savings rate is fairly low as well. How are these points acceptable?
    Mortgage debt is many many multiples of credit card debt so why not get rid of mortgages?
 
 
 
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