Post by lollygagger on Jan 9, 2020 9:58:24 GMT
Strange subject perhaps, I've never had any connection and I hate shopping but a minor recent exchange got me thinking
I've read that sales in Nov/Dec were down. All kinds of things being blamed from Amazon to Brexit.
What nobody is pointing out (why?) is the new banking law apparently designed to stop people in the worst cases from maxing out a fistful of cards and ever after making minimum payments while being charged excruciating interest rates on the never decreasing balance. I think overall this intention as publicised is a good thing.
Anyone in persistent debt has been advised by their card issuer over the past 36 months to make ever increasing payments to clear their debt before the 36 months is up...next month. After that, banks are required by law to take more serious action and will suspend peoples cards unless they make these now large repayments. This apparently effects 4 million people who obviously live beyond their means, or did while they built up their debts, but now pay so much interest that they live below their means and are being forced to pay back their debts on top.
This is probably the real cause of the minor retail slump?
I have sympathy for anyone in an unavoidable financial pickle, but whether unavoidable or self inflicted, being charged mega interest while being forced to pay it back, which was NOT the deal while the debt built up, does seem to rather favour the banks. Again.
None of this effects me or mine, I never had a card I didn't pay off in full all the time, in fact my last credit card (remember EGG?) was withdrawn because my "usage didn't fit their business model". i.e. they only wanted persistent debtors.
It's a wicked world for the gullible.
I've read that sales in Nov/Dec were down. All kinds of things being blamed from Amazon to Brexit.
What nobody is pointing out (why?) is the new banking law apparently designed to stop people in the worst cases from maxing out a fistful of cards and ever after making minimum payments while being charged excruciating interest rates on the never decreasing balance. I think overall this intention as publicised is a good thing.
Anyone in persistent debt has been advised by their card issuer over the past 36 months to make ever increasing payments to clear their debt before the 36 months is up...next month. After that, banks are required by law to take more serious action and will suspend peoples cards unless they make these now large repayments. This apparently effects 4 million people who obviously live beyond their means, or did while they built up their debts, but now pay so much interest that they live below their means and are being forced to pay back their debts on top.
This is probably the real cause of the minor retail slump?
I have sympathy for anyone in an unavoidable financial pickle, but whether unavoidable or self inflicted, being charged mega interest while being forced to pay it back, which was NOT the deal while the debt built up, does seem to rather favour the banks. Again.
None of this effects me or mine, I never had a card I didn't pay off in full all the time, in fact my last credit card (remember EGG?) was withdrawn because my "usage didn't fit their business model". i.e. they only wanted persistent debtors.
It's a wicked world for the gullible.
