[lynx]

I've heard a wee rumour this morning that HBOS have taken to removing some customers o/d facility with no warning - even customers who have had substantial o/d's and have serviced them perfectly well for years.

Anyone experienced this yet?

[eric pisch]

banks are evaluating all there risk

many people have been over stretched with the amount of credit they could get, for a while credit card company's have been reducing balances and increasing % rates where the consider the risk to be higher (or they think they can get away with it)

so i am not surprised that ODs are being looked at

i would be surprised if they did not notify that they where changing it

[montybaber]

We were in the process of selling our house last year and our bank (lloyds tsb) called in our overdraughts on two accounts and gave us 2 weeks to come up with A LOT of money.

I assumed we could go in and have a chat to explain that we are selling up and soon would pay it off, we had always met EVERY payment etc but they wouldnt budge and didnt give no choice but to remortgage the house to raise the cash! so no moving for us.

will never have an od again!!!

[eric pisch]

Originally Posted by montybaber

We were in the process of selling our house last year and our bank (lloyds tsb) called in our overdraughts on two accounts and gave us 2 weeks to come up with A LOT of money.

I assumed we could go in and have a chat to explain that we are selling up and soon would pay it off, we had always met EVERY payment etc but they wouldnt budge and didnt give no choice but to remortgage the house to raise the cash! so no moving for us.

will never have an od again!!!

this is a risk that may well come back to haunt the banks

people have become reliant on credit, the banks make money on it, by making people go cold turkey alot are becoming resentful and rejecting credit such as cards and ODs, not good in the long term for the banks or the global economy. If you go over onto the MSE forums there are huge numbers there in the process of doing this.

[kopchoir]

not had an overdraft for around 6 years or a credit card got stung with a very large o/d at such a young age that turned into a loan never again i just deal with cash and savings always get mythered when i go into the branch for an o/d and a cc but politely decline one time they actually sent me a cc without me applying for it got £50 compo for it

My savings are soon to be improved my mortgage has dropped to £193 a month i dont know wether to stick some cash in a savings account or pay more off my mortgage

[Ian J]

Originally Posted by kopchoir

i dont know wether to stick some cash in a savings account or pay more off my mortgage

if the interest rates paid to savers gets any lower they will have to bring back the farthing.

[eric pisch]

Originally Posted by kopchoir

My savings are soon to be improved my mortgage has dropped to £193 a month i dont know wether to stick some cash in a savings account or pay more off my mortgage

Martin over at MSE always recommends paying of debt before saving since the cost of the debt is 99% of the time more than the return of the savings.

My only concern with this is what if you loose an income and you have no reserves

[kopchoir]

Originally Posted by eric pisch

Martin over at MSE always recommends paying of debt before saving since the cost of the debt is 99% of the time more than the return of the savings.

My only concern with this is what if you loose an income and you have no reserves

my income is now shot due to me now being a student but the incentives after the course finishes will be to pay off my mortage within 24 months and then rent out. I have 2 and a half years left on my course so i reckon interest rates will go back up in that time i may as well try and get a little nest egg sorted now hence the savings option its not the interest that bothers me its the temptaion to touch it i reckon could put around £300 a month away

[arthurdentpc]

Why not do both ? £200 pm off your mortage, £100 pm savings, in some sort of account you can't touch without penalty.

[mooperman]

Originally Posted by kopchoir

not had an overdraft for around 6 years or a credit card got stung with a very large o/d at such a young age that turned into a loan never again i just deal with cash and savings always get mythered when i go into the branch for an o/d and a cc but politely decline one time they actually sent me a cc without me applying for it got £50 compo for it

same here, my own silly fault for being immature around 10 years ago and various stores throwing store card credit at me!!

Still all cleared a few years back and will never go near credit unless i have to now..

[montybaber]

Obviously nobody wants credit but sometimes its inevitable

just for example I work 45-50 miles from where i work (and 65 to to college once a week) and i rely heavily on my car, if something goes wrong with my car and i havent enough saved I have to get it done.

Its the unexpected that ends up crippling me, I struggle to pay these debts off due to not earning much more than my outgoings.

I get savings together and one bit of bad luck im back to square one!

Good on yer all with no cards credit etc but not everyone with debts are irresponsible people with expensive tastes in shoes some of us are just struggling through life

Banks offered me anything before this recession and were quick to screw me over when things went sour, they knew I was in trouble and frankly didnt care! I was waiting for two weeks for a mortgage valuation to see if a remortgage was possible with no other option but losing my house.

I hope no-one here has to go through that, it sticks up my nose that if they had given me a few months extra (like i say i was comfortably making payments and chipping away at my od) i would have sold my house and all would have been ok

anyway stuck here now miles from work with that horrible drive everyday

[Knyght_byte]

I got them to wipe a good few hundred off one of my cards that they finance. They sent me a letter stating that because of the way I manage my account they are not going to reissue it once its past its end date but they would be generous enough to let me pay the remaining balance off monthly until its gone. So I phoned them up and politely explained that it is they who have not been behaving responsibly with their money, my card has never been treated differently and until the credit crunch they quite happily raised the limit each year. Advised that the letter was for all intents and purposes libellous and what would they do? So they offered to wipe some of the debt off.....result

[eric pisch]

Originally Posted by montybaber

Obviously nobody wants credit but sometimes its inevitable

just for example I work 45-50 miles from where i work (and 65 to to college once a week) and i rely heavily on my car, if something goes wrong with my car and i havent enough saved I have to get it done.

Its the unexpected that ends up crippling me, I struggle to pay these debts off due to not earning much more than my outgoings.

I get savings together and one bit of bad luck im back to square one!

Good on yer all with no cards credit etc but not everyone with debts are irresponsible people with expensive tastes in shoes some of us are just struggling through life

Banks offered me anything before this recession and were quick to screw me over when things went sour, they knew I was in trouble and frankly didnt care! I was waiting for two weeks for a mortgage valuation to see if a remortgage was possible with no other option but losing my house.

I hope no-one here has to go through that, it sticks up my nose that if they had given me a few months extra (like i say i was comfortably making payments and chipping away at my od) i would have sold my house and all would have been ok

anyway stuck here now miles from work with that horrible drive everyday

i personally have nothing against credit as long as its reasonably priced, I couldn't afford my kuro in a million years but it was easy to pay for over 4 years at 6.2% apr

and having a couple of grand on a credit card means not having to worry if an emergency crops up.

however i think for many we became too reliant on cheap credit and payed no consequence to the long term effects.

[Loftusrd1980]

I suppose it is up to the individual to strike a balance between credit and paying for things instantly.

I was always taught that you saved for luxury items that you wanted and then just bought them when you had the money, where as now people think they should automatically be entitled to something on a wim without having the money for it.

A credit card is very handy when like others have said an unexpected payment has to be made such as the car breaking down or such like but generally should only be used in emergencies in my opinion.

[JohnG]

Originally Posted by Loftusrd1980

I suppose it is up to the individual to strike a balance between credit and paying for things instantly.

I was always taught that you saved for luxury items that you wanted and then just bought them when you had the money, where as now people think they should automatically be entitled to something on a wim without having the money for it.

A credit card is very handy when like others have said an unexpected payment has to be made such as the car breaking down or such like but generally should only be used in emergencies in my opinion.

I feel the same way as well. I've never had an overdraft and have always paid credit cards off the same month. If I can't afford it now I either don't bother or save up for it until I can afford it.
In my experience banks are willing to lend money right up to the point where you really need it and then they pull the rug out from underneath you.

[_dark_blu]

Originally Posted by Knyght_byte

I got them to wipe a good few hundred off one of my cards that they finance. They sent me a letter stating that because of the way I manage my account they are not going to reissue it once its past its end date but they would be generous enough to let me pay the remaining balance off monthly until its gone. So I phoned them up and politely explained that it is they who have not been behaving responsibly with their money, my card has never been treated differently and until the credit crunch they quite happily raised the limit each year. Advised that the letter was for all intents and purposes libellous and what would they do? So they offered to wipe some of the debt off.....result

Not libellous in the slightest but well done in getting some money for nothing! A cardholder that 'manages' their account by paying on time and in full each month is still at risk of not 'managing' in the way that the card issuer would like to continue business with them in and said issuer is within their right to withdraw facility. They don't actually have to give a reason at all, just provide the minimum legally required notice!

[eric pisch]

Originally Posted by Loftusrd1980

I suppose it is up to the individual to strike a balance between credit and paying for things instantly.

I was always taught that you saved for luxury items that you wanted and then just bought them when you had the money, where as now people think they should automatically be entitled to something on a wim without having the money for it.

A credit card is very handy when like others have said an unexpected payment has to be made such as the car breaking down or such like but generally should only be used in emergencies in my opinion.

the problem with that is by the time you have saved the item would no longer be made

i also have a problem with it on the grounds thats x years of your adult life gone that you are not going to get back, there is no point dying rich

[richard plumb]

Martin from MSE pointed out that if you have credit cards with a decent limit, it may be worth not having an emergency rainy day fund at all - use it all up to pay off higher APR loans/credit cards. If the rainy day happens, use your credit cards and you're in no worse off a position than when you started. If there is no rainy day, you've saved the APR on your loans, which would have been way higher than any interest earned on your savings.

[eric pisch]

Originally Posted by richard plumb

Martin from MSE pointed out that if you have credit cards with a decent limit, it may be worth not having an emergency rainy day fund at all - use it all up to pay off higher APR loans/credit cards. If the rainy day happens, use your credit cards and you're in no worse off a position than when you started. If there is no rainy day, you've saved the APR on your loans, which would have been way higher than any interest earned on your savings.

abit risky, if they cut of your credit you will have nothing

in the past i made the mistake of only having cards with Barclays (Debit, Visa and MC), I had a client knock me and my account went over its OD limit.

At which point they turned off all 3 Cards without warning and I had to borrow money from a secretary at work to pay for petrol so that i could work ....

They also started taking money out of a tied in savings accounts (i could not access the money) to pay off CCs without asking.

[Loftusrd1980]

Originally Posted by eric pisch

the problem with that is by the time you have saved the item would no longer be made

i also have a problem with it on the grounds thats x years of your adult life gone that you are not going to get back, there is no point dying rich

I am not rich but have everything that I need as I don't really get in to the I need a new TV every year mentality. I live for today but strike a balance between owing money and having money.

[kopchoir]

Originally Posted by montybaber

Obviously nobody wants credit but sometimes its inevitable

just for example I work 45-50 miles from where i work (and 65 to to college once a week) and i rely heavily on my car, if something goes wrong with my car and i havent enough saved I have to get it done.

Its the unexpected that ends up crippling me, I struggle to pay these debts off due to not earning much more than my outgoings.

I get savings together and one bit of bad luck im back to square one!

Good on yer all with no cards credit etc but not everyone with debts are irresponsible people with expensive tastes in shoes some of us are just struggling through life

Banks offered me anything before this recession and were quick to screw me over when things went sour, they knew I was in trouble and frankly didnt care! I was waiting for two weeks for a mortgage valuation to see if a remortgage was possible with no other option but losing my house.

I hope no-one here has to go through that, it sticks up my nose that if they had given me a few months extra (like i say i was comfortably making payments and chipping away at my od) i would have sold my house and all would have been ok

anyway stuck here now miles from work with that horrible drive everyday

Yeah i agree some people use credit cards to what they want it for where as others spend it on a whim my mate swears by them but like most he uses them properly pays balance off

Originally Posted by eric pisch

i personally have nothing against credit as long as its reasonably priced, I couldn't afford my kuro in a million years but it was easy to pay for over 4 years at 6.2% apr

and having a couple of grand on a credit card means not having to worry if an emergency crops up.

however i think for many we became too reliant on cheap credit and payed no consequence to the long term effects.

my boiler just packed in today luckily i ahve a few quid stashed but a CC would of come in handy when teh boiler man turns up

Originally Posted by Loftusrd1980

I suppose it is up to the individual to strike a balance between credit and paying for things instantly.

I was always taught that you saved for luxury items that you wanted and then just bought them when you had the money, where as now people think they should automatically be entitled to something on a wim without having the money for it.

A credit card is very handy when like others have said an unexpected payment has to be made such as the car breaking down or such like but generally should only be used in emergencies in my opinion.

agree again
I think the reaosn i dont do it anymore is the temptation im weak