Topaz Posted April 17, 2012 Report Posted April 17, 2012 Remember when the Finance Minister said he has or was going to talk to the Banks? I wondering what he said to them because I'm sure everyone by now has gotten a notice that interest rates on credit cards are going up and some banking service charges. It seems every time the Minister talks, we get hit by increases. Since Hudson Bay Company was been bought out, the Zellers, now Target, has changed over to Capital One credit cards with interest rates at 29.99% I can see why some consumers debt is so high, between not finding a good paying job and companies high interst rate, what the the Bank of Canada expect? Quote
Shady Posted April 17, 2012 Report Posted April 17, 2012 Remember when the Finance Minister said he has or was going to talk to the Banks? I wondering what he said to them because I'm sure everyone by now has gotten a notice that interest rates on credit cards are going up and some banking service charges. It seems every time the Minister talks, we get hit by increases. Since Hudson Bay Company was been bought out, the Zellers, now Target, has changed over to Capital One credit cards with interest rates at 29.99% I can see why some consumers debt is so high, between not finding a good paying job and companies high interst rate, what the the Bank of Canada expect? My advice would be don't use a credit card with 29% interest rates. There's plenty of cards that have much lower rates of interest. Also, look both ways before you cross the road. Quote
Bonam Posted April 17, 2012 Report Posted April 17, 2012 (edited) Who would carry a balance on a credit instrument with an interest rate that high? Whether it's 18% or 30% hardly matters, use a credit line instead. They are widely and easily available in Canada and you can get interest rates in the range of 2-4%. Credit cards are for convenient payment methods and reward points, not for carrying debt. I don't know how so many people fail at understanding that. Edited April 17, 2012 by Bonam Quote
dre Posted April 17, 2012 Report Posted April 17, 2012 Who would carry a balance on a credit instrument with an interest rate that high? Whether it's 18% or 30% hardly matters, use a credit line instead. They are widely and easily available in Canada and you can get interest rates in the range of 2-4%. Credit cards are for convenient payment methods and reward points, not for carrying debt. I don't know how so many people fail at understanding that. People should be real carefull about using credit lines as well. Quote I question things because I am human. And call no one my father who's no closer than a stranger
Topaz Posted April 18, 2012 Author Report Posted April 18, 2012 My advice would be don't use a credit card with 29% interest rates. There's plenty of cards that have much lower rates of interest. Also, look both ways before you cross the road. Thanks for the advice Shady but I already know what the lower interest cards but I don't think you can get low interest card for department stores like Sears, Zellers, Walmart. I only have one credit, and its low interest. I was just remarking that the government keeps telling consomers to watch their household debt, when these companies keep upping their rates including the banks, am going to look into credit unions has to offer. Quote
capricorn Posted April 18, 2012 Report Posted April 18, 2012 People should be real carefull about using credit lines as well. Absolutely. Regardless of the interest charged for using credit it's too easy for some people to abuse it. Years ago I read an article that some people are born to be in debt; they just never learn their lesson and are always one step away from personal bankruptcy. --- About credit cards and lines of credit in general. Some credit card companies and major banks will cancel your credit instrument if you don't use it for a specific length of time. The trick is to make a purchase on credit or make a cash withdrawal on your line of credit, then pay the full balance a couple of days later to keep the account(s) active. Again, it takes a lot of self discipline to play their game in order to maintain access to credit (or a good credit rating) for the day you really, really need it. Quote "We always want the best man to win an election. Unfortunately, he never runs." Will Rogers
dre Posted April 18, 2012 Report Posted April 18, 2012 Absolutely. Regardless of the interest charged for using credit it's too easy for some people to abuse it. Years ago I read an article that some people are born to be in debt; they just never learn their lesson and are always one step away from personal bankruptcy. --- About credit cards and lines of credit in general. Some credit card companies and major banks will cancel your credit instrument if you don't use it for a specific length of time. The trick is to make a purchase on credit or make a cash withdrawal on your line of credit, then pay the full balance a couple of days later to keep the account(s) active. Again, it takes a lot of self discipline to play their game in order to maintain access to credit (or a good credit rating) for the day you really, really need it. Yup... most people dont use credit properly IMO. The really scary thing is how many of these lines of credit are attached to mortages. People are borrowing against home equity that is going to evaporate when the housing bubble bursts. I strongly suspect that home equity lines of credit will go down in history as a huge mistake. People think "oh its no problem! I have 100k in home equity!". And they pretend that paper value is a real asset, and adjust their behavior accordingly. This is a huge part of the reason that Canadians have no savings. Banks are practically BEGGING people to take all this money, because the central bank sees all this borrowing and spending as economic stimulus. They are right but only in the short term. What will follow is a long and deep recession... probably starting in 2014 or 2015 once Canadians stop consuming and start rebuilding their savings. Quote I question things because I am human. And call no one my father who's no closer than a stranger
fellowtraveller Posted April 18, 2012 Report Posted April 18, 2012 About credit cards and lines of credit in general. Some credit card companies and major banks will cancel your credit instrument if you don't use it for a specific length of time. Where do you get these curious ideas? I have a no-annual-fee VISA card I have not used more than a couple times in 20 years(CIBC), no problem and I have no other business with that bank. Every five years or so they call me to ask when I expect to use it more, and I tell them I will when their interest rates drop below 10% I will consider it. I have a small($15K) unsecured LOC with BMO I have not used at all since about 1994, and a much larger one with RBC I've never used in the 8 years or so I've had business with them. Who specifically is shutting down unused credit accounts? Quote The government should do something.
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