Free Choice and Credit Cards - A recipe for disaster?

I've seen that happen in Australia as well and it's a recipe for disaster.

Thanks for sharing. There used to be qualifying criteria but somewhere that all went belly up. I think it's ethically irresponsible and the finance companies need to be liable for it. I have a friend who started out with a $1,000 limit which she could handle okay, she made her payments on time. Then because it looked fine to the Credit Card company they offered to increase her limit. This woman is on a pension. She filled out the form and got an increase, then in a years time they did it again and offered her a larger limit. Now she has a $6,000 debt. The crazy thing is that she would never have qualified for it in the first place. She is the stupid one as well for getting lured into that type of financial situation. Her thinking was that it would be good in case of an emergency and she was always using her family, her kids as the emergency. Yes, she is gullible, but who is the irresponsible party? The finance companies must make so much money out of them that anyone who ends up bankrupt is not an issue. It is an issue to the consumer but not to the finance company, they earn a fortune from them.

You know what Tetchie here in the uk you do not have to fill out a form or sign anything, if you make your payments on time for a while - they write to you and tell you your limit has been raised - sometimes by thousands of pounds at a time! xxx

I'm glad you brought up store credit cards because I have a funny story about them. At least it was funny to me. I was waiting to pay for an item of clothing in a store and the counter person- no, that sounds like an unperson, the clerk was talking on the phone to a customer about the need to receive payment on their overdue account. Then she turned to me and asked if I had a *Blank* Card and if not, would I like to apply for one? She didn't understand why I laughed out loud, so I told her if I didn't have the money I just wouldn't..buy..the..clothes. She clearly thought I was unpatriotic.

Hi vidalias, Credit can be a difficult issue. If you've never had to borrow money then you don't get a credit rating. And without a credit rating you can't borrow money - stupid paradox. So why do so many retail department stores give out store cards like it was candy? That's so irresponsible I can't begin to tell you how immoral that is and I'd like to see it become illegal - it preys on the gullible. Situations like you stated with your cell phone are not easy, but you overcame it with good old cash. Now you will have a credit history by having a cell phone.

Man o man, LOL. It is an ingrained belief that Credit Cards are to be honored and cherished, and that every ma,n woman and child in America should have one, not to mention the debt that goes with it. It's like bowing down to false gods!

It is the worst way to shop - how very true Betso. A life full of credit card debt is such a drag in a persons life.

Actually, there is nothing owing on my credit cards at the moment.

Hello Ms Tickle. Two parts to your post. Firstly that saying of the banks - if there is anything else I can do for you, don't hesitate to ask. Only applies to those they can make money out of. Not to blame the staff really, they are just doing their job, it's a generic term of politeness that has little substance! LOL. Secondly, if I was going to do the very best for you as a financial person (which I used to be) I would have given you a Personal Loan to pay off your credit cards and then cut them up and close them. And never given you a credit card again. I'm ruthless but you win in the end.

Good move demo, thanks for sharing.

HAHAHAHA, jackcin, funny one. I'm personally not a SB fan.

Way to go Marie. Well done.

Out of control commercialism, yes. I must be out of the loop also because there used to be allot of regulation in giving out credit cards and the like. But obviously it's a free market where the gullible get caught again. I believe it's the credit companies that need to be accountable. But really the only way to get them back is to stop using their money. I sound like a hypocrite somewhat because I do have a Mastercard with a $4,000 limit. I have had it for around 25 years. But somehow I outsmarted them as it is totally fee free. I declined all the offers to get a new fandangled Gold Card with all the trimmings as I knew the marketing ploys. I stuck with what I had cause it was what I wanted and I knew the tricks. But I never use their money. I use my card overseas and I put my own money into it, like a bank account and use my funds instead. I never pay interest, I never pay fees and I after I paid the mortgage on my house, I never use money that's not mine. It's also my way of sticking it to them!!

That's a good analogy - winning the lottery. The excitement of getting one is just like that, moreso to the young and ignorant. Feels like you can have an endless spending spree. ...............And then whammo! Hey it's good to have you back lovely lady. Is your son on the mend, I hope as good as new. That must have been nasty times.

So true, I know myself that I get into those shopping moods and I can't stop at just one piece of clothing. All the pleasure of new clothes is just dampened by debt - no thanks. You have your head screwed on the right way steney, wise woman.

If I were your husband I'd clip your credit cards and not your wings!

A big stick! LOL.

My husband shares the same view! lol!!! But there is no cure! :D

Thanks mummymo, tell me to go jump if you wish but it's a bit like robbing Peter to pay Paul and you are paying interest for doing it too. It's always cheaper to use your own money. If I knew I had the money in my bank account but was left short of cash and had to use my credit card, I'd transfer funds as soon as I got home or found an ATM machine. I used to be a Bank Manager and allot of the loan requests were by young people wanting to pay off their high cost personal loans and credit cards. And I know that anything with Credit Card in the sentence of a finance company is never in the customers best interests, it's in the interests of the finance company. They don't care if you go bust because they have already got their pound of flesh in the interest rate.

Of course I won't tell you to go jump sweet - I appreciate your advice! I don't keep a big balance but I know exactly what you mean! The good news is I haven't been able to go out much so I haven't used them in the last month or so so hopefully they will be totally clear in the next few months and I can go back to the way I used to be - paying off full amount as soon as I get the bill - that way I don't pay any interes and it is still very convenient! xxx

Thanks mummymo, I can get a bit pushy, kill people with kind intentions and sometimes I need the reigns put on. So pleased though that you stop relying on those darn things. Once your credit gets out of control it is so hard to reel it back in and it's really harmful to your standard of living. If all you have is debt, you take a big nosedive in the living stakes.

We can all live without them, somehow someone told us we couldn't! Thanks for responding takkea.

The card is definately a danger if you don't know how to use it. Used to have one when Daddy was paying the bills. Kills your ability to manage your money because somehow it doesn't seem like real money when all you have to do is to sign on the dotted line instead.-best forget the status symbol and go for good old fashioned cash - you either have it or you don't

Wise words tigertang. How paradoxical too, yes the card is a liability yet it is sold to you in the guise of an asset! Here's hoping you can go another 22 years without one.

You know first hand and well done for cutting up the little sucker! Did you have to apply for it or did they just hand it to you?

For sure and it's just not worth the anguish of all that debt. And the things you bought you don't really care about either. But of course that's not the finance companies problem is it!

Well done Sherry. They are a terrible trap and so many people are doing just what you are having to do.