Archive for the ‘Debt’ Tag

Checkmate For Credit Card Cheques

credit-cardThey are one of most annoying things I get from my credit card company. I don’t ask for them, I don’t want them but they keep coming. They are a huge security risk and are an expensive to use, but the credit card companies just tell me I should be pleased I have the benefit of their forethought. I did once manage to stop the dam things coming by writing to an address that took a considerable effort to find.

Unfortunately, when I was issued with a new card and number as a security measure the credit card cheques started arriving again. ‘Its a different card number Sir’, was the reply when I asked why my instructions were being ignored and the only way to stop them coming was to write again; and no I could not email or ask her to accept the request, it had to be in writing.

When someone is already in debt the idea of using a cheque that seemingly is being offered without any real conditions on its use must be very tempting. It is a blatant attempt by the credit card companies to get us to borrow more so they can make more money. I am very pleased the government is going to ban their use, perhaps they should go further and bring in more stringent controls on these little bit s of plastic that have been a significant problem for many people.

Money Money Money Debt Debt Debt

I’ve just acquired a new credit card, one that does not charge for foreign transactions. When I applied I was expecting a tough time getting one and if successful the credit limit would not get into four figures. Well it was extremely easy to acquire and the credit limit is mind blowing. I’m not a high powered executive, in fact I don’t work. My pension income is sufficient for our needs but not huge. So why has the bank decided I’m a good risk and provided the opportunity to sink into a significant level of debt? Am I living in a different world?

When the world has borrowed its self into financial nightmare I would have thought there would be a degree of restraint. We hear of businesses being unable to get credit and facing closure, house buyers unable to get mortgages and the rate of borrowing being the lowest on record. Such restraint does not seem to have effected the personal finance market. Giving someone the easy opportunity to get into a not insignificant debt would seem irresponsible, unless the bank is working on the basis that as a home owner if the worst happens they will get their money even if the card holder ends up with nothing.

Individuals must take responsibility for their own finances and should not put the blame on everyone else for their difficulties. But banks should also play their part and not provide the means by which individuals can be the makers of their own downfall.