Debt.

[jonthefox]

Ive just had my credit card bill and i nearly shat when i saw ive gone over £2500. Is this normal?.

Bearing in mind im fairly mature (i hate the word old), i work full time, own a house etc, and this debt equates to roughly 9/10 % of my yearly wage.

[DANGEROUS TIGER]

Ive just had my credit card bill and i nearly shat when i saw ive gone over £2500. Is this normal?.

Bearing in mind im fairly mature (i hate the word old), i work full time, own a house etc, and this debt equates to roughly 9/10 % of my yearly wage.

I don't think it is too bad, but it depends a great deal on your A.P.R., and also what you have have purchased.

Personally, I would NEVER have a credit card..

My advice, is that you try and stop using it. Remember, a credit card is a HUGE profit maker.

[jimmer]

If you keep spending on your card, they will allow you to reach your set limit

Another tip with "credit" cards is the fact it is only "credit", you have to pay it back......with interest!!

[Zingari]

sorry but i don't really understand the question and not sure what normal would be for a credit card as it depends on what you buy with it ( or were you asking if it's normal to shit yourself )

is this amount for 1 month ?

have you spent a large proportion of the money on booking a holiday or something ?

do you remember spending it ?

was it all necessary ?

can you afford to pay it back at a monthly rate and spend less in future as you seem to have a good income ?

edit ;

were you expecting the world to end and not pay it off

[FoxyPV]

Yes, it is.

As long as it's your only debt bar mortgage/ car you're on easy street. The average unsecured debt is around 20k+.

[jonthefox]

Yes, it is.

As long as it's your only debt bar mortgage/ car you're on easy street. The average unsecured debt is around 20k+.

Things could be worse then. 20k, thats shocking.

[DANGEROUS TIGER]

One of the major problems, is that people are bombarded with encouragement to use cards, and many people fail to realize how simple it is to incur massive debt. Yours seems under control, and is not overly large,, but with some gullible people it's spend, spend, spend, with money they don't have --.( A bit like the last Labour government )

[Jon the Hat]

Things could be worse then. 20k, thats shocking.

To be fair, some people have assets such as cars, home improvements etc to support theirs. It is remarkably easy to get into a lot of debt though. Harder than it was.

For you personally I would recommend you look at money saving expert for the best 0% balance transfer, move it and cut up the new card so you can pay it off asap.

[Winchester]

Credit cards incredibly profitable. Quite a few shops who issue their own cards make close to 50% of their profit from that alone.

Remember also, that the CC companies make money from charging you interests, but also from merchants whom they charge anywhere between 1.5%-3.5% for each transaction. They would like you to rack up some debt so they can charge YOU interest, but even if you just run all your purchases through your card and pay it off in full each month, they're still making a tidy profit.

Also, should things get really bad, ie close to bankruptcy, give your c.cards a call and ask to negotiate down the balance. I've heard of some people knocking it down from 25k to 8k on the assurance that they won't file bankruptcy and can pay off the reduced amount within a few months.

[ozleicester]

Meh, if you can make the payments then dont sweat it.

There is a concept that people hold that says you have to save for things before you can have them, well im afraid thats a tad antiquated in my mind, if you manage your credit well, it then is just like saving.. but in reverse if you get my drift.

Not to mention the fact that with inflation running at 5%... if you have to save for a couple of years..you will have to spend 10% more to buy it anyway.

Of course this is all based on MANAGING your credit.

The other side of the coin is...

if you owe the bank $5,000 and you havent made the payments.. your nervous.

If you owe the bank $5,000,000 and you havent made a payment THE BANK is nervous.

[grth2004]

Meh, if you can make the payments then dont sweat it.

There is a concept that people hold that says you have to save for things before you can have them, well im afraid thats a tad antiquated in my mind, if you manage your credit well, it then is just like saving.. but in reverse if you get my drift.

Not to mention the fact that with inflation running at 5%... if you have to save for a couple of years..you will have to spend 10% more to buy it anyway.

Of course this is all based on MANAGING your credit.

The other side of the coin is...

if you owe the bank $5,000 and you havent made the payments.. your nervous.

If you owe the bank $5,000,000 and you havent made a payment THE BANK is nervous.

Probably the worst debt advice ive ever heard , ive been there done that with debt and got into trouble , my advice is rip up your cards pay off as much as you can a month and never have a credit card again , if you in debt to a credit card company they will without doubt charge interest so every day you work you are working for them , its hard i know but living without credit cards is the best option

[Jon the Hat]

Meh, if you can make the payments then dont sweat it.

There is a concept that people hold that says you have to save for things before you can have them, well im afraid thats a tad antiquated in my mind, if you manage your credit well, it then is just like saving.. but in reverse if you get my drift.

Not to mention the fact that with inflation running at 5%... if you have to save for a couple of years..you will have to spend 10% more to buy it anyway.

Of course this is all based on MANAGING your credit.

The other side of the coin is...

if you owe the bank $5,000 and you havent made the payments.. your nervous.

If you owe the bank $5,000,000 and you havent made a payment THE BANK is nervous.

Even if you manage your credit, you are pying something like 20% more for everything you buy. This, frankly, is how stupid people run their lives. A lot of us are stupid - me included - but you cannot say it isn't stupid.

[Matt]

Not been in debt once in my life and not going to guarantee i'm never going to be because things could go drastically wrong but the only debt I plan to be in is when I buy a house which I consider 'good' debt, as I see it as solid investment.

Worked since I left school which is what I put down to why i've not been in debt.

[ozleicester]

ive been there done that with debt and got into trouble ... The same can be said about alcohol, prescription drugs and any number of things. Note the word that i especially used caps for... MANAGE.

If you save your money, each day it is in the bank, it is worth less than the day you put it in there.... you can buy real estate 'Bricks and mortar never goes down" .... check house values over the past 5 years.

You can get credit cards that offer an interest free period.

if you pay your card off every month... free credit

You can get credit cards with an interest rate of around 15%. So yes there is a cost in order to have it now but it isnt as horrific as people make out, unless you overspend.

As i understood the OP, this was not about over spending just about having a debt level.

This, frankly, is how stupid people run their lives you know what...PHUCK YOU!.... ive run my life this way for 25 years im ive never defaulted on a payment, never been in financial problems, even during times of retrenchmnet etc, im a home owner, (well, home buyer, with a mortgage..is that ok?) raised children and living a (to me) comfortable life.

I didnt respond to the OP and announce it was the only way or that they were stupid for doing it or not doing it.. just figured id offer an alternative to the "typical, credit cards are evil".

[grth2004]

ive been there done that with debt and got into trouble ... The same can be said about alcohol, prescription drugs and any number of things. Note the word that i especially used caps for... MANAGE.

If you save your money, each day it is in the bank, it is worth less than the day you put it in there.... you can buy real estate 'Bricks and mortar never goes down" .... check house values over the past 5 years.

You can get credit cards that offer an interest free period.

if you pay your card off every month... free credit

You can get credit cards with an interest rate of around 15%. So yes there is a cost in order to have it now but it isnt as horrific as people make out, unless you overspend.

As i understood the OP, this was not about over spending just about having a debt level.

This, frankly, is how stupid people run their lives you know what...PHUCK YOU!.... ive run my life this way for 25 years im ive never defaulted on a payment, never been in financial problems, even during times of retrenchmnet etc, im a home owner, (well, home buyer, with a mortgage..is that ok?) raised children and living a (to me) comfortable life.

I didnt respond to the OP and announce it was the only way or that they were stupid for doing it or not doing it.. just figured id offer an alternative to the "typical, credit cards are evil".

credit cards are evil

[MPH]

Even if you manage your credit, you are pying something like 20% more for everything you buy. This, frankly, is how stupid people run their lives. A lot of us are stupid - me included - but you cannot say it isn't stupid.

There is an email you should get. It's called Martin's Money tip - it gives you a comprehensive list of all the ebst ways to save money.

One of them is to do with credit cards.. He gives some great advice - sign up for a new credit card that gives you a 0% offer on balance transfers for a set period - usually 12 months. then when that expires simply sign up for someone else doing this deal and transfer your balance onto that. My mum has done this for 4 years in a row now and hasnt paid any intrest for the whole of the four years.

Now you either will end up with more beer money or more money with wich to reduce the amount you owe much more quickly- the choice really is yours!

[samjohnson]

Horrible evil little plastic things.

Ive always been bought up (or dragged if you will) with the ethic of only spending the money you have.

[Jon the Hat]

ive been there done that with debt and got into trouble ... The same can be said about alcohol, prescription drugs and any number of things. Note the word that i especially used caps for... MANAGE.

If you save your money, each day it is in the bank, it is worth less than the day you put it in there.... you can buy real estate 'Bricks and mortar never goes down" .... check house values over the past 5 years.

You can get credit cards that offer an interest free period.

if you pay your card off every month... free credit

You can get credit cards with an interest rate of around 15%. So yes there is a cost in order to have it now but it isnt as horrific as people make out, unless you overspend.

As i understood the OP, this was not about over spending just about having a debt level.

This, frankly, is how stupid people run their lives you know what...PHUCK YOU!.... ive run my life this way for 25 years im ive never defaulted on a payment, never been in financial problems, even during times of retrenchmnet etc, im a home owner, (well, home buyer, with a mortgage..is that ok?) raised children and living a (to me) comfortable life.

I didnt respond to the OP and announce it was the only way or that they were stupid for doing it or not doing it.. just figured id offer an alternative to the "typical, credit cards are evil".

What you describe there is not how the vast majority of people use their credit cards - me included sadly. The point is, if £2500 of credit card debt is what makes your life "better" and that is 10% of your annual income, then had you just waited a couple of months then you would be hugely better off years down the line.. Don't take offence, none is intended, I am merely pointing out that the banks built us a system, and made it feel indispensable when it isn't, are they are fleecing us for £billions a year doing so - we are in general stupid for letting them get away with it.

[ozleicester]

What you describe there is not how the vast majority of people use their credit cards - me included sadly. The point is, if £2500 of credit card debt is what makes your life "better" and that is 10% of your annual income, then had you just waited a couple of months then you would be hugely better off years down the line.. Don't take offence, none is intended, I am merely pointing out that the banks built us a system, and made it feel indispensable when it isn't, are they are fleecing us for £billions a year doing so - we are in general stupid for letting them get away with it.

There is an assumption that we must all be looking to be "better off" in the future. This is how governmernts and evil bankers have sucked the masses into buying houses, investing in shares, putting money in bank accounts all with the belief that then people lives will be better.

Yes badly managed credit is dangerous, but my suggestion is aimed at people with a level of intellect and common sense, if you are unable to show restraint, understand incomes and outgoings or generally be responsible for your own life and decisions, then yup, join with the sheep...announce that credit is evil and head over to that grassy meadow over there. When used intelligently and effectively you can make the banks work for you.

As an aside, those who say they nevr want a credit card... you may wish to talk to your bank well ahead of applying for that home loan, as many banks now expect you to have had a credit card to demonstrate a reliable payment history.

There are times when living life in the moment is the right thing to do and paying the extra interest costs are an investment in LIVING and experiencing life.

[Jon the Hat]

There is an assumption that we must all be looking to be "better off" in the future. This is how governmernts and evil bankers have sucked the masses into buying houses, investing in shares, putting money in bank accounts all with the belief that then people lives will be better.

Yes badly managed credit is dangerous, but my suggestion is aimed at people with a level of intellect and common sense, if you are unable to show restraint, understand incomes and outgoings or generally be responsible for your own life and decisions, then yup, join with the sheep...announce that credit is evil and head over to that grassy meadow over there. When used intelligently and effectively you can make the banks work for you.

As an aside, those who say they nevr want a credit card... you may wish to talk to your bank well ahead of applying for that home loan, as many banks now expect you to have had a credit card to demonstrate a reliable payment history.

There are times when living life in the moment is the right thing to do and paying the extra interest costs are an investment in LIVING and experiencing life.

I agree completely, but it is an expensive way to live your life. You can *you have) evidently played the banks own system back at them and benefit from it. But most don't.

[Phube]

Ive just had my credit card bill and i nearly shat when i saw ive gone over £2500. Is this normal?.

Bearing in mind im fairly mature (i hate the word old), i work full time, own a house etc, and this debt equates to roughly 9/10 % of my yearly wage.

I'm also.... 'fairly mature' and I wish my CC debts were only £2500!

[jonthefox]

I'm also.... 'fairly mature' and I wish my CC debts were only £2500!

This is the point i was trying to make.

After learning the average debt is 20k i realise things aint too bad.

[DANGEROUS TIGER]

There is an assumption that we must all be looking to be "better off" in the future. This is how governmernts and evil bankers have sucked the masses into buying houses, investing in shares, putting money in bank accounts all with the belief that then people lives will be better.

Yes badly managed credit is dangerous, but my suggestion is aimed at people with a level of intellect and common sense, if you are unable to show restraint, understand incomes and outgoings or generally be responsible for your own life and decisions, then yup, join with the sheep...announce that credit is evil and head over to that grassy meadow over there. When used intelligently and effectively you can make the banks work for you.

As an aside, those who say they nevr want a credit card... you may wish to talk to your bank well ahead of applying for that home loan, as many banks now expect you to have had a credit card to demonstrate a reliable payment history.

There are times when living life in the moment is the right thing to do and paying the extra interest costs are an investment in LIVING and experiencing life.

Ah, a philosopher of the " Live Now, Pay Later" attitude to life.

Never borrowed in my life, and don't intend to. I would rather go without.

[ozleicester]

Ah, a philosopher of the " Live Now, Pay Later" attitude to life.

Never borrowed in my life, and don't intend to. I would rather go without.

As opposed to the pay now live later brigade.... to each their own.

[Parafox]

Credit was so easy to obtain a few years ago and the Credit card companies made it so desirable and seem so necessary in order to live an "aspirational" lifestyle that a lot of people got into huge difficulties. We did. We had 3 credit cards at one point, using one to pay off the interest on another. Needless to say it all came crashing down around our ears and we had to go for an IVA (Individual Voluntary Agreement) to get creditors off our backs. This means we pay £500 per month to the IVA company who then re-distribute money to creditors. This is all agreed through Court processes.

It works for us, we now pay a fixed sum per month and the people we owe money to get a bite of the cherry. We repay the money owed without the interest that would normally be charged on a card/loan.

The downside is, we now have a terminally bad credit rating and cannot get loans or credit cards to fall back on, (we have no savings left). To be honest, we don't want credit cards ever again. We have to live within our means.

Worryingly, I heard today that SOME IVA companies are witholding payments to creditors and several have gone bust leaving the clients (debtors) with the full debts to be repaid (they do not take into account any money repaid before the company went tits up)

Ref the OP.. £2500 is very small unless its an unexpected debt you weren't aware of and you have to pay it within a month. Our total debt was£35,000 on credit cards and loans. My God, were we stupid!!!