Date:17 March 2009 I Comments: 3 I Views:7,844

Isn’t it a good thing that credit card companies are finally going to be stopped from increasing their customers credit limits without consent!

It’s like a breath of fresh air after a crazy time of money madness.

I’ve had the letters: ‘we’re happy to say we’ve increased your credit limit’.

My initial thought has always been ‘that’s nice’ and then it’s forgotten and the card stays in the drawer with even more credit available.

The ideal use of a credit card is one of convenience though, not credit.

Use it to buy everything and then clear the balance each month with your earnings. They are designed for 20th century living and make it easy to transact with modern business but they are a trap created by clever people who ultimately want your money.

If everyone who owned a credit card cleared their balance each month, the fat cat corporates would have to radically restructure their business model and find another way to make money. It’s people with outstanding balances who end up paying for the nice cars and big bonuses we’ve heard so much about lately.

The bank of England base rate is 0.5% but credit cards interest rates remain as high as they’ve ever been for many years.

The new laws wont be introduced until the Summer and they were announced by the current PM, Mr. GB with a pending election. So is it all smoke and mirrors? Or it could be the start of a ‘feelgood’ departure from a party who feels they may have already lost the next round. 

Somehow I think this move will get backing regardless of who is at the helm.

Read more about this in the news.

Category: Credit Cards

Comments

  1. I completely agree – the ability to access easy lending in the UK has, in my opinion, helped fuel the current problem situation we find ourselves in. I have noticed over the last 12-18 months though that people are posting online that CC companies have actually been REDUCING credit limits.

    This certainly indicates to me that the finance companies have been aware for some time of the pending credit crisis in world markets. As for laws mentioned I feel it’s a little too late!

  2. Vicky

    Instead of taking out a credit card with uncertain credit limits, it may be worth considering buying items on interest free credit (buy-now-pay-later schemes). This way, you are only paying for one item with a set cost instead of using a card with an extending limit which may lead to more impulse buying which will result in more debt.

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