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Dextrous63
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24-03-2020, 12:28 PM
1

Credit Cards Cashing in

It's a sad situation. People will have less income (if indeed any at all) for a fair old while. This means that many won't be able to clear their credit cards and will end up paying interest and/or late payment fees.

So, credit card companies will end up making an absolute fortune.
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25-03-2020, 09:47 AM
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Re: Credit Cards Cashing in

Originally Posted by Dextrous63 ->
It's a sad situation. People will have less income (if indeed any at all) for a fair old while. This means that many won't be able to clear their credit cards and will end up paying interest and/or late payment fees.

So, credit card companies will end up making an absolute fortune.
Not exactly. Credit card providers don't have buckets of cash to draw from to pay the businesses that want to be paid the money that the credit card has promised to pay. Those credit card backers must buy cash from various sources or borrow and service the loans they have to take out in order to do so.

Time is money. The longer they have to service their loans the more that they have to pay. Then there will be the bad debts that have to pursued through courts and or collection agencies - more cost to them, or just written off - even more cost.

How about the people who do clear their credit card a/c each month?

They are a cold loss to the cc provider, the only offset the cc has is the small, and it IS small, charge they apply to the merchant.

Like many things once one lifts the lid the first impression turns out to be very different from reality.
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25-03-2020, 11:08 AM
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Re: Credit Cards Cashing in

Originally Posted by The Artful Todger ->
Not exactly. Credit card providers don't have buckets of cash to draw from to pay the businesses that want to be paid the money that the credit card has promised to pay. Those credit card backers must buy cash from various sources or borrow and service the loans they have to take out in order to do so.

Time is money. The longer they have to service their loans the more that they have to pay. Then there will be the bad debts that have to pursued through courts and or collection agencies - more cost to them, or just written off - even more cost.

How about the people who do clear their credit card a/c each month?

They are a cold loss to the cc provider, the only offset the cc has is the small, and it IS small, charge they apply to the merchant.

Like many things once one lifts the lid the first impression turns out to be very different from reality.
Sounds like the whole present day financial system is " just a house
of cards" waiting to collapse Todgy? Even the people that lend money
have borrowed the money that they lend and the people that lent
the money to them have also borrowed that money??
It was always going to end in tears, and it appears that corona could
be the key stone worldwide? ☹️☹️☹️

Donkeyman!
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25-03-2020, 12:56 PM
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Re: Credit Cards Cashing in

Originally Posted by Donkeyman ->
Sounds like the whole present day financial system is " just a house
of cards" waiting to collapse Todgy? Even the people that lend money
have borrowed the money that they lend and the people that lent
the money to them have also borrowed that money??
It was always going to end in tears, and it appears that corona could
be the key stone worldwide? ☹️☹️☹️

Donkeyman!
You're right. Fractional Reserve Banking and fixed clearing times means that the ability to juggle is probably more important than numeracy.

Mortgages are a good case in point. I wonder how many people with a British bank mortgage realise that mortgage is actually funded by a foreign financial institution.

Mind you, that is a wonderful way to get foreign financial investment into the UK that is remarkably difficult to trace - even when you DO know where to look, one of the important reasons to ensure that house prices continue to rise.

Then the importance of continued immigration in order to inflate the UK GDP. That's a can of worms in itself.
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25-03-2020, 03:52 PM
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Re: Credit Cards Cashing in

A lot of the hike in interest charges was to deter people from panic buying and stock-piling.

Thats what I heard anyway from the Nat West.
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25-03-2020, 04:10 PM
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Re: Credit Cards Cashing in

I hope that certain people do get hammered, the other day there was nowhere in the UK you could get a freezer from, right from the little ones for a hundred quid up to the big fridge freezers costing several grand, obviously people were buying them to hoard food, regardless of whether anyone else could buy food, I assume these greedy people also filled their new freezers using their credit cards!
Well they deserve everything they get, I haven't seen a chicken, either fresh, or frozen in a couple of weeks, the same people seem to be visiting the supermarkets daily and filling trolleys, we ran out of hand soap and it took me a week to get hold of some! Certain individuals seem hell bent on stripping the shops, first they bought all the meat and toilet roll, then the next stuff, then the next until they were buying stuff they wouldn't normally even look at, just plain greed, well I hope they get whats coming to them.
TessA
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25-03-2020, 05:28 PM
7

Re: Credit Cards Cashing in

I think the phone and broadband providers should not be allowed to charge if you go over your data and call allowance.
Lots of desperate folk trying to get info, keep in contact with family and just have a distraction, need more than usual.
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26-03-2020, 10:15 AM
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Re: Credit Cards Cashing in

I have never used a credit card I simply don’t understand the principle of building up debt thta will have to be paid off at some point in the future .
sparky
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26-03-2020, 11:46 AM
9

Re: Credit Cards Cashing in

Originally Posted by Muddy ->
I have never used a credit card I simply don’t understand the principle of building up debt thta will have to be paid off at some point in the future .
I had one once and only used it for extreme emergencies, I don't have one now. I think the problem with credit is a lot of people don't understand it, if you look back to the 70's and 80's when catalogues were popular, loads of people got into debt, the stuff was generally dearer than in the shops, as you'd expect, but people didn't understand the way it worked.
They'd see something and think, 'oh it's only 50p a week', not realising it was 50p a week for the next 18 months, so they'd order one, then something else for a pound a week, and on it went. Suddenly they were paying out a tenner a week, which a lot of them couldn't afford.
Look how many people got caught out with the payday loans, or those horrible companies that made massive profits by charging ridiculous APR's, someone in genuine need would borrow say a hundred quid and end up paying back several hundred.
I've heard some real horror stories of people getting into debt, and those who've been forced into the hands of loan sharks fare even worse, one woman got into debt with credit cards to such an extent that she had to resort to a loan shark, then when she couldn't meet his massive interest charges things started to get really nasty in the end she was forced to have sex with a load of his mates to clear the debts, it was virtually rape!
How the hell can we be a responsible and civilised society with things like this going on, then again you only have to look at the way things are going now. Boris Johnson delayed taking the proper course of action, a total lockdown because he knew full well that the rich business owners would lose money and he didn't want to upset them, the rest of us can rot so long as those with the money are ok.
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26-03-2020, 11:52 AM
10

Re: Credit Cards Cashing in

Originally Posted by TessA ->
I think the phone and broadband providers should not be allowed to charge if you go over your data and call allowance.
Lots of desperate folk trying to get info, keep in contact with family and just have a distraction, need more than usual.
Why? People pay for a commodity and if the you use more than you have paid for who else should pay for it?
 

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