revtothelimit - motorbike forum

ZRX61 wrote: Sat Feb 01, 2025 10:17 pm

Cousin Jack wrote: Thu Jan 30, 2025 2:23 pm Sadly CC interest rates will continue to be astronomic as long as DROs persist. One of the reasons I packed in CA was a lack of sympathy for people with 10s of £000s on CC and coming in for their 2nd DRO.

I just checked what mine was: 16.75%.. but I haven't paid any charges because I pay the balance off every week.

Yes, mine is fairly tasty too, but like you I pay it off every month. Some people run up huge debts, find they cant afford the interest, and then blame everyone except themselves for the shit they are in.

My CC interest rate is 0%, and it'll be cleared before the 0% rate ends, it was taken out to clear a credit card which had 0% spending for 6 months which paid for a new PC build and some Harley parts.

If I was certain of having a job when it all gets cleared I'd do the dance again.

Was bankrupt some 18 years ago. Never had/wanted a card since. Use the odd Paypal Credit now and then but only in the interest free options and never go over the top

I / we were very close to being declared bankrupt about 18 - 20 years ago, took some serious effort to claw my / our way back to being comfortably solvent without being declared or having an IVA etc..
Along the way you find the debt free people / groups who will rail against lenders like it's a religion, but if you can surf the 0% wave be it CC's, paypal, Klarna etc. and keep your shit organised then being in debt isn't a bad thing.

MrLongbeard wrote: Sun Feb 02, 2025 12:40 am I / we were very close to being declared bankrupt about 18 - 20 years ago, took some serious effort to claw my / our way back to being comfortably solvent without being declared or having an IVA etc..
Along the way you find the debt free people / groups who will rail against lenders like it's a religion, but if you can surf the 0% wave be it CC's, paypal, Klarna etc. and keep your shit organised then being in debt isn't a bad thing.

I have nothing against CC lenders. You know what you are in for before signing the dotted line and if it can work for you then grand but, For me and probably many other people life can turn for the worst on the flick of a switch. Mine turned at the wrong moment so bankruptcy was the only option and TBH i dont want to be in that place again.

I have two from the Credit Union, $5k limit on one, $2.5k on the other. I also have a Sam's Club VISA that I use when buying food or gas as I get cash back on that, but that one also gets paid off before incurring any charges. That one has an $8k limit.
I used to have a couple of CitiBank cards, but ditched those about 15 years ago, one had a $25k limit & the other was $24k.

MrLongbeard wrote: Sun Feb 02, 2025 12:40 am Ithen being in debt isn't a bad thing.

Hey it never stopped the government!

I've had loads of loans and CCs and stuff and never got into trouble. This is why I'm so insistent Baby D does her maths homework. There's nothing wrong with debt, IMO the problem comes when you don't have an intuitive sense of how much you've already spent and how much you're borrowing.

Mr. Dazzle wrote: Sun Feb 02, 2025 7:28 am

MrLongbeard wrote: Sun Feb 02, 2025 12:40 am Ithen being in debt isn't a bad thing.

Hey it never stopped the government!

I've had loads of loans and CCs and stuff and never got into trouble. This is why I'm so insistent Baby D does her maths homework. There's nothing wrong with debt, IMO the problem comes when you don't have an intuitive sense of how much you've already spent and how much you're borrowing.

+ unrealistic (imaginative) ideas about income and how the debt is to be repaid.

(Haven't got any CCs, just Amex which has to be repaid every month. Probably should have just for the purchase protection on some things).

I have two CCs, although I only really use one. Just never got around to closing the other.

I always pay em off, they're useful for the extra layer of protection. I've also used em for big things like double glazing payments or cars cause the cashback is worth having at those prices

Debt exists for good reasons too, it's like most financial instruments: originally created for pretty benign legitimate purposes, then used layer to take the piss.

I have 3, a Visa, a Mastercard and an Amex. Total limit is about £36k across the 3, but I have never been near that figure. A few years back it was waaay higher before the banks realised that pushing credit limits to the stratosphere was not a good idea. They are useful, and 95% of my everyday spend goes on one or the other.

My beef is not with people who run into financial trouble, it can happen to most of us, and faster than you think if troubles stack up. What I do think is wrong is people taking the piss, write off £25k with a DRO, come back 2 years later for another £20k of someone else's money they don't want to pay back.

If you leave cracks, arseholes will use em. What can you say?

DROs are another one of those things which were created for "good" reasons which can now be exploited.

Never had a credit card and always paid for everything with debit card. No loans for bikes, always cash.

Over here always carry a few hundred in my pocket and use the debit card once a month, tops

Mrs Y has a credit card which we use only for online stuff to get protection. She uses cash like me otherwise.

I've been totally debt free for 10 years since we sold the houses in the UK. It's a great feeling.

Yorick wrote: Sun Feb 02, 2025 11:37 am Never had a credit card and always paid for everything with debit card.

As someone said earlier, paying by CC gives additional consumer rights.

eg I had a full refund from a company that was playing silly buggers. And, following CC advice, ended up with the item too.

Cousin Jack wrote: Sun Feb 02, 2025 9:03 am I have 3, a Visa, a Mastercard and an Amex. Total limit is about £36k across the 3, but I have never been near that figure. A few years back it was waaay higher before the banks realised that pushing credit limits to the stratosphere was not a good idea. They are useful, and 95% of my everyday spend goes on one or the other.

My beef is not with people who run into financial trouble, it can happen to most of us, and faster than you think if troubles stack up. What I do think is wrong is people taking the piss, write off £25k with a DRO, come back 2 years later for another £20k of someone else's money they don't want to pay back.

Doesn't a DRO reduce your credit rating for 6 years? Can't understand why a CC company would issue one at all to anyone in that period (other than the rapacious rates allow for a high % of default...which seems pretty immoral).

Yes, a DRO shows on your file for 6 years, and you can't get another one for 6 years either. Didn't stop the shysters coming back in about 3 years with more debt.

Some CC are more akin to the doorstep lenders, they will lend to people with poor credit history, just the rates go up. Immoral ? In my book yes, but then I never borrow more than I can afford to service and repay.

Count Steer wrote: Sun Feb 02, 2025 1:07 pm (other than the rapacious rates allow for a high % of default...which seems pretty immoral).

Yeah that.

Hate the system as much as hating the borrowers! Some people are just bad with debt, others have figured out how to take advantage of that. T'was ever thus.

You could say DROs should prevent you getting any form of credit whatsoever in future, but then people would say you can't get energy supply or whatever. Can't win.

I can remember the first CC in the UK when they were only available to 'good' customers. I was one, back in 1966 or 67. I also had the first 'hole in the wall' cards, punched card style. That would have been about 1968.
Even a chequebook was not automatically available to everyone.

Credit was earned, and default on debt was a millstone around your for many years.

I had no problems with that system, I would be happy to see it come back.
.

Back to light-hearted

https://ideas.lego.com/projects/3d10f85 ... 2d48142a30

Yorick wrote: Sun Feb 02, 2025 11:37 am Never had a credit card and always paid for everything with debit card. No loans for bikes, always cash.

Over here always carry a few hundred in my pocket and use the debit card once a month, tops

Mrs Y has a credit card which we use only for online stuff to get protection. She uses cash like me otherwise.

I've been totally debt free for 10 years since we sold the houses in the UK. It's a great feeling.

Cash here too, usually have about $2k in the house & up to $500 in my pocket. Friend uses cards & Venmo for everything. He bought some ZRX frame bolts off me for $4. The day I handed them over he had $1 cash on him & it was another 6 months before I saw the $3...FFS.

ZRX61 wrote: Mon Feb 03, 2025 10:03 pm

Yorick wrote: Sun Feb 02, 2025 11:37 am Never had a credit card and always paid for everything with debit card. No loans for bikes, always cash.

Over here always carry a few hundred in my pocket and use the debit card once a month, tops

Mrs Y has a credit card which we use only for online stuff to get protection. She uses cash like me otherwise.

I've been totally debt free for 10 years since we sold the houses in the UK. It's a great feeling.

Cash here too, usually have about $2k in the house & up to $500 in my pocket. Friend uses cards & Venmo for everything. He bought some ZRX frame bolts off me for $4. The day I handed them over he had $1 cash on him & it was another 6 months before I saw the $3...FFS.

I usually have 1 note on me, either a a £10 or a £20 for emergencies when someone doesn't do cards. Otherwise everything goes on a CC, the debit card stays home except when I am going to draw out cash. I did that today (£50), first time in about 9 months. With luck that £50 will last me 2025.