Monday, 6 April 2009

Credit Cards - Rant

I always said i wouldn't get a Credit Card... Until i was 18 and old enough to be offered a Credit Card.

It's all fabulous at first when you've got interest free spending for the first three months. Then after that you continue to use it not realising that the free interest period is over and that you are now being charged an extortionate amount of interest each month.

To get to the point i hocked my Credit Card up to the eyeballs, paying the minimum payment each month. However the amount i owed on the credit balance never really went down significantly, as the minimum payment i made only really covered the amount of interest i was being charged. So one month i forgot to pay on time and they demanded a ridiculous amount (around £69) for one payment. I paid it and then the following month i paid off a lump of around £500. I vowed i wouldn't spend anymore on it and just continue to clear the balance. Cue the Mac Hello Kitty Collection and that promise went right out of the window. Amongst other things i've basically ran up the balance again.

So today a minimum payment was due and i totally forgot to pay it. I realised at about 7 pm and immediately rang the said Bank/Credit Card Company. I explained i wanted to make a payment but it was too late to go to a branch as they are closed. I was informed by what i can only describe as a complete Moron that they would not accept payment over the phone. I therefore couldn't make a payment and was told i will receive a charge even though i was willing to pay but unable to get into the branch tomorrow.
I ended up putting the phone down on the woman, which i rarely do but i just feel it is such a disgrace.
It is evident that the reason they wont accept payments over the phone is purely so they can charge people like me. Its disgusting!

I will be lodging a letter of complaint, and i have already allocated £500 of my student loan at the end of this month to pay off of the card. I am also going to be chopping up the credit card.
The moral of this is do not get a credit card unless you are fully prepared for the extortionate interest rates, ridiculous policies, and temptation of spending money that isn't yours.
Sorry for the rant everyone but i really needed to get this off of my chest and warn you all what these companies really are like.
xoxo
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14 comments

  1. Nightmare :(

    When was the payment due? I always set mine to direct debits as I'm crap at remembering to pay things on time.

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  2. i totally agree! mine is about 10 times the amount of yours now...i tell everyone never to get one! such a waste of money and stress!! Dont do it girls!!

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  3. I know - I wish I'd never got one, but I was so skint when I was a student! Now I just keep using it out of habit, although I'm planning on reviewing my budget at the end of the month and seeing if I can pay some off...

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  4. I got rid of mine too, its just a false sense, credit cards are really only any good if you are intending to pay all your purchases off at the end of each month. Problem is people see a credit limit, and think "free money" which we all know it isn't.
    Just make sure when you do pay it off that they close the account, it took 3 attempts for A&L to actually do that for me, the last thing they actually want to do is close it, they want you to feel tempted again, so beware of that. Very shoddy practices.
    xxx

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  5. I've only just got my first credit card at the age of 29 and I am not to sure whether it was a good idea - basically I only got it as I have just bought a flat and once I move will have no money so will save it for emergency's hopefully, but I can see how they are tempting and people rack up huge bills x

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  6. Check if they will waive the charge if you've always paid on time. I would never trust myself with a credit card. I'd be in so much debt x

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  7. They are so dangerous! I've had two in the past, and two store cards. Its so easy just to think you'll pay it off later... and then you end up paying the minimum :( Defo cut it up Kelly, i managed to pay mine off and cut them up a few years ago, never had a card since! X x

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  8. I signed up to have mine fully cleared each month by direct debit as I don't want to pay interest plus I hate owing money. I look at my credit card more as a debit card. You should defo try and get it paid off and cut it up. :)

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  9. Sounds like the wise thing to do...;) I 'm trying to sort out my money-management situation too (hence trying to cut down on shopping lately), and imagine I don't even have a credit card, only use debit! Hope it all works out with the bank (they can be an extreme pain)! xoxo <3

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  10. ugh yea credit cards are gross... i went over the limit on mine once and even though i have perfect credit they wouldn't raise my limit.

    if i am ever in a money-makin mood i will apply for a job in the credit card industry.

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  11. Totally agree with you! I know the feeling! They are so quick to offer you money when you start off in life! Knowing that your prob quite vulnerable! And i hate the way the notch up the interest payment!! Crooks! ;)x

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  12. I feel your frustration! I pay mine through standing order. Then I get to choose the day and the amount that goes out. If I forget about it it doesn't matter - the same amount will go out as last month. If I want to pay more I don't have to talk to them, just change a number in my online banking account.
    Hope uni & life's going well :)

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  13. Yes, credit cards are evil! Luckily I've managed to stay away from them and just live in my over draft, but I know how horrific they can be from my brothers experience! Hope you manage to pay it off soon :) xx

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  14. OH they are horrible things!! I only just got my very first credit card last year, at first it was a big novelty, and now I'm realising it's not all fun and games as I am struggling to pay the thing off! I would have put the phone down on her too, don't worry : )

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