Credit card holders gouged more than $2 billion since 2011, research shows 

Date
    August 4, 2015
    Sydney Morning Herald

The major banks are being accused of gouging customers with startling high interest rates.

Credit card holders have been ripped off more than $2 billion dollars in nearly half a decade because of the banks' failure to pass on official interest rate cuts, research shows.   :(

Since November 2011, when credit card providers stopped moving interest rates in line with the official cash rate, Australians have been gouged $2.07 billion, say consumer group Choice and comparison website Mozo.

"The fact is an average credit card holder has paid an extra $281 because of unnecessarily high interest rates. Worryingly, this comes at a time when one-in-five Australians are living off their credit card to get through to payday," said Choice's campaigns manager Erin Turner.   :(

"The findings point to a systemic issue with Australia's banking system. Because the big banks control over 80 per cent of the credit card market, they aren't competing on price and are keeping consumer costs high even though their costs for providing credit have dropped," she said ahead of the Reserve Bank's meeting on Tuesday.


The research found fewer than one-fifth of the 55 major credit card providers between November 2011 and May 2015 adjusted their interest rates following an official interest rate cut.

The official cash rate is at a record-low of 2 per cent. The gap between the Reserve Bank's rate and credit card interest rates is at its widest since records began in 1990.



But in the past few years, interest rates for just about every other type of debt have plunged, baffling economists and consumers.

The top brass of Treasury and the Reserve Bank were interrogated about the record gap by Labor senator Sam Dastyari in June. They conceded it was a "good question" and they would take a closer look.

The Treasury has essentially advised Treasurer Joe Hockey there is no systemic problem in this part of the banking market. It also does not think the issue is a symptom of a lack of competition.

A Senate committee will soon begin investigating into why Australia's big four branks are charging such high rates without clear reason. Choice will present more detailed findings of its analysis.



"We know the average credit card interest rate in June 2011 was 17.41 per cent but instead of falling in-line with the cash rate it rose by 0.2 per cent over the last four years to 17.61 per cent by the 31st of May this year," said Mozo's Kirsty Lamont.

"We have also seen the average credit card annual fee rise from $94 in late 2011 to $115 in May 2015. Clearly consumers are getting a raw deal."   :(

Steven Münchenberg, chief executive of the Australian Bankers' Association, insisted the banking industry was competitive, pointing to the vast array of credit card products on offer by at least 67 financial institutions.

"The interest rate on bank credit card products covers a broad range - from a low of 5.30 per cent to a high of 20.99 per cent. Each credit card product offers a range of benefits - from no frills to premium options," he said.

"Interest on credit cards is higher than it is for mortgages and some personal loans. This is because credit card lending is unsecured and therefore riskier. Banks need to factor in the risk that the person holding the credit card may default," he said.

"The interest rate will also reflect the various features of the credit card. It is these considerations that drive credit card interest rates, not the Reserve Bank's cash rate."

1. Get rid of your credit card/s.

2. Learn the invaluable skill of living within your means.


The End

Lisa Jones wrote on Aug 4^th, 2015 at 11:11am:

1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End

Does that mean you should save up first before you buy a house ?

She's not saying that rusty. It's about day to day expenses.

I can see people who are so desperate they resort to that merry-go-round but it's bound to end in tears.

bogarde73 wrote on Aug 4^th, 2015 at 11:22am:

She's not saying that rusty. It's about day to day expenses. I can see people who are so desperate they resort to that merry-go-round but it's bound to end in tears.

A mortgage is a day to day expense or month to month expense and the banks profit out of both mortgages and credit cards. I see no difference between the two except that it is acceptable to buy a house on credit.

Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses.

Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it.
The lenders should be under more constraint as to who they issue them to.

Sir lastnail wrote on Aug 4^th, 2015 at 11:18am:

Lisa Jones wrote on Aug 4th, 2015 at 11:11am: 1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End Does that mean you should save up first before you buy a house ?

Oh duh!

bogarde73 wrote on Aug 4^th, 2015 at 11:33am:

Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest.

I never got this.  If you know you can pay the balance off within the time limit, why even bother with a credit card and just use a standard debit card which uses your own money :-?

I worked for the Commonwealth Bank back in the 1970s when credit cards first came to Australia. Yes I got one back then and I just became credit card free last week. For 40 years that little card was my constant companion, can't say I paid a hell of a lot in interest but am glad to see it gone.
Our banks have a lot to answer for, particularly on the issue of offering increased limits without a full financial check-up.
I know someone who is struggling to keep abreast of a $6000 limit, and yes, perhaps it is her fault she got herself into that situation in the first place, but she should never have been given a $6000 limit by the Westpac Bank.

bogarde73 wrote on Aug 4^th, 2015 at 11:33am:

Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses. Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it. The lenders should be under more constraint as to who they issue them to.

Does that apply to no doc or no deposit loans on houses or have we all been brainwashed into believing that is the accepted norm to borrow any amount to buy a home ?

bogarde73 wrote on Aug 4^th, 2015 at 11:33am:

Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses. Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it. The lenders should be under more constraint as to who they issue them to.

So we shouldn't borrow to buy a car  because it's not a long term investment ?

Stratos wrote on Aug 4^th, 2015 at 11:44am:

bogarde73 wrote on Aug 4th, 2015 at 11:33am: Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. I never got this.  If you know you can pay the balance off within the time limit, why even bother with a credit card and just use a standard debit card which uses your own money :-?

Bingo!  That's what we do  :)

Lisa Jones wrote on Aug 4^th, 2015 at 11:34am:

Sir lastnail wrote on Aug 4th, 2015 at 11:18am: Lisa Jones wrote on Aug 4th, 2015 at 11:11am: 1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End Does that mean you should save up first before you buy a house ? Oh duh!

According to Andrei's signature quote Lisa has no imagination.

"Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde"

Sir lastnail wrote on Aug 4^th, 2015 at 11:54am:

bogarde73 wrote on Aug 4th, 2015 at 11:33am: Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses. Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it. The lenders should be under more constraint as to who they issue them to. So we shouldn't borrow to buy a car  because it's not a long term investment ?

Yep. Don't ever borrow money for cars, holidays, stereo equipment...etc.

That's what we do.

Unforgiven wrote on Aug 4^th, 2015 at 11:58am:

Lisa Jones wrote on Aug 4th, 2015 at 11:34am: Sir lastnail wrote on Aug 4th, 2015 at 11:18am: Lisa Jones wrote on Aug 4th, 2015 at 11:11am: 1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End Does that mean you should save up first before you buy a house ? Oh duh! According to Andrei's signature quote Lisa has no imagination. "Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde"

I don't care what Oscar Wilde thought.

I care about what works well for my family today....what puts them in front.

Sir lastnail wrote on Aug 4^th, 2015 at 11:51am:

bogarde73 wrote on Aug 4th, 2015 at 11:33am: Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses. Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it. The lenders should be under more constraint as to who they issue them to. Does that apply to no doc or no deposit loans on houses or have we all been brainwashed into believing that is the accepted norm to borrow any amount to buy a home ?

YOU MUST HAVE AT LEAST 20% DEPOSIT BEFORE ENTERING THE REAL ESTATE MARKET. OTHERWISE FORGET IT.

Lisa Jones wrote on Aug 4^th, 2015 at 12:01pm:

Unforgiven wrote on Aug 4th, 2015 at 11:58am: Lisa Jones wrote on Aug 4th, 2015 at 11:34am: Sir lastnail wrote on Aug 4th, 2015 at 11:18am: Lisa Jones wrote on Aug 4th, 2015 at 11:11am: 1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End Does that mean you should save up first before you buy a house ? Oh duh! According to Andrei's signature quote Lisa has no imagination. "Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde" I don't care what Oscar Wilde thought. I care about what works well for my family today....what puts them in front.

Any tips for keeping up with the Jones's?

Unforgiven wrote on Aug 4^th, 2015 at 12:05pm:

Lisa Jones wrote on Aug 4th, 2015 at 12:01pm: Unforgiven wrote on Aug 4th, 2015 at 11:58am: Lisa Jones wrote on Aug 4th, 2015 at 11:34am: Sir lastnail wrote on Aug 4th, 2015 at 11:18am: Lisa Jones wrote on Aug 4th, 2015 at 11:11am: 1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End Does that mean you should save up first before you buy a house ? Oh duh! According to Andrei's signature quote Lisa has no imagination. "Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde" I don't care what Oscar Wilde thought. I care about what works well for my family today....what puts them in front. Any tips for keeping up with the Jones's?

Only 1 tip.

Do whatever you can to marry into their family.

:P

Unforgiven wrote on Aug 4^th, 2015 at 12:05pm:

Lisa Jones wrote on Aug 4th, 2015 at 12:01pm: Unforgiven wrote on Aug 4th, 2015 at 11:58am: Lisa Jones wrote on Aug 4th, 2015 at 11:34am: Sir lastnail wrote on Aug 4th, 2015 at 11:18am: Lisa Jones wrote on Aug 4th, 2015 at 11:11am: 1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End Does that mean you should save up first before you buy a house ? Oh duh! According to Andrei's signature quote Lisa has no imagination. "Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde" I don't care what Oscar Wilde thought. I care about what works well for my family today....what puts them in front. Any tips for keeping up with the Jones's?

borrow borrow borrow !! but don't tell anyone you borrowed ;)

Lisa Jones wrote on Aug 4^th, 2015 at 12:05pm:

Sir lastnail wrote on Aug 4th, 2015 at 11:51am: bogarde73 wrote on Aug 4th, 2015 at 11:33am: Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses. Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it. The lenders should be under more constraint as to who they issue them to. Does that apply to no doc or no deposit loans on houses or have we all been brainwashed into believing that is the accepted norm to borrow any amount to buy a home ? YOU MUST HAVE AT LEAST 20% DEPOSIT BEFORE ENTERING THE REAL ESTATE MARKET. OTHERWISE FORGET IT.

why 20% ? why not 40 or 60 ?

Sir lastnail wrote on Aug 4^th, 2015 at 12:09pm:

Lisa Jones wrote on Aug 4th, 2015 at 12:05pm: Sir lastnail wrote on Aug 4th, 2015 at 11:51am: bogarde73 wrote on Aug 4th, 2015 at 11:33am: Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses. Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it. The lenders should be under more constraint as to who they issue them to. Does that apply to no doc or no deposit loans on houses or have we all been brainwashed into believing that is the accepted norm to borrow any amount to buy a home ? YOU MUST HAVE AT LEAST 20% DEPOSIT BEFORE ENTERING THE REAL ESTATE MARKET. OTHERWISE FORGET IT. why 20% ? why not 40 or 60 ?

I did say AT LEAST. Duh!

A home mortgage  is the  alternative  to renting. When you  rent you  pay some one else's mortgage, either  way  you  pay  for  a  roof over  your  head. Someday  the  mortgage  might  be  paid  off but  the  rent never  stops. Your choice.

Lisa Jones wrote on Aug 4^th, 2015 at 12:08pm:

Unforgiven wrote on Aug 4th, 2015 at 12:05pm: Lisa Jones wrote on Aug 4th, 2015 at 12:01pm: Unforgiven wrote on Aug 4th, 2015 at 11:58am: Lisa Jones wrote on Aug 4th, 2015 at 11:34am: Sir lastnail wrote on Aug 4th, 2015 at 11:18am: Lisa Jones wrote on Aug 4th, 2015 at 11:11am: 1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End Does that mean you should save up first before you buy a house ? Oh duh! According to Andrei's signature quote Lisa has no imagination. "Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde" I don't care what Oscar Wilde thought. I care about what works well for my family today....what puts them in front. Any tips for keeping up with the Jones's? Only 1 tip. Do whatever you can to marry into their family. :P

Wowee. I am coming to check out availability. You can expect my knock on your door.

If the first caller you see is a dishevilled man unshaven and smelly on your doorstep, longweekend58 got there before me.

Lisa Jones wrote on Aug 4^th, 2015 at 11:59am:

Sir lastnail wrote on Aug 4th, 2015 at 11:54am: bogarde73 wrote on Aug 4th, 2015 at 11:33am: Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses. Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it. The lenders should be under more constraint as to who they issue them to. So we shouldn't borrow to buy a car  because it's not a long term investment ? Yep. Don't ever borrow money for cars, holidays, stereo equipment...etc. That's what we do.

Not even a car for a business ?

Sir lastnail wrote on Aug 4^th, 2015 at 12:09pm:

why 20% ? why not 40 or 60 ?

Mortgage insurance.

Sir lastnail wrote on Aug 4^th, 2015 at 12:15pm:

Lisa Jones wrote on Aug 4th, 2015 at 11:59am: Sir lastnail wrote on Aug 4th, 2015 at 11:54am: bogarde73 wrote on Aug 4th, 2015 at 11:33am: Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses. Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it. The lenders should be under more constraint as to who they issue them to. So we shouldn't borrow to buy a car  because it's not a long term investment ? Yep. Don't ever borrow money for cars, holidays, stereo equipment...etc. That's what we do. Not even a car for a business ?

Only if it can be leased AND it gives your salary package a favourable tax return.

Lisa Jones wrote on Aug 4^th, 2015 at 12:11pm:

Sir lastnail wrote on Aug 4th, 2015 at 12:09pm: Lisa Jones wrote on Aug 4th, 2015 at 12:05pm: Sir lastnail wrote on Aug 4th, 2015 at 11:51am: bogarde73 wrote on Aug 4th, 2015 at 11:33am: Yes but a mortgage is a long term investment but the grocery bill or power bill are your short term expenses. Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. It's a convenient transaction vehicle if you can handle it. The lenders should be under more constraint as to who they issue them to. Does that apply to no doc or no deposit loans on houses or have we all been brainwashed into believing that is the accepted norm to borrow any amount to buy a home ? YOU MUST HAVE AT LEAST 20% DEPOSIT BEFORE ENTERING THE REAL ESTATE MARKET. OTHERWISE FORGET IT. why 20% ? why not 40 or 60 ? I did say AT LEAST. Duh!

I'll rephrase that. Why not at least 40 or 60% ?

Stratos wrote on Aug 4^th, 2015 at 12:16pm:

Sir lastnail wrote on Aug 4th, 2015 at 12:09pm: why 20% ? why not 40 or 60 ? Mortgage insurance.

Mortgage insurance is IMO, a waste of time and money.

It is also not necessary if you have over 20% deposit on hand.

NB You need to factor in legal fees, stamp duty etc hence why I keep stating AT LEAST 20 % in my posts.

Unforgiven wrote on Aug 4^th, 2015 at 12:13pm:

Lisa Jones wrote on Aug 4th, 2015 at 12:08pm: Unforgiven wrote on Aug 4th, 2015 at 12:05pm: Lisa Jones wrote on Aug 4th, 2015 at 12:01pm: Unforgiven wrote on Aug 4th, 2015 at 11:58am: Lisa Jones wrote on Aug 4th, 2015 at 11:34am: Sir lastnail wrote on Aug 4th, 2015 at 11:18am: Lisa Jones wrote on Aug 4th, 2015 at 11:11am: 1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End Does that mean you should save up first before you buy a house ? Oh duh! According to Andrei's signature quote Lisa has no imagination. "Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde" I don't care what Oscar Wilde thought. I care about what works well for my family today....what puts them in front. Any tips for keeping up with the Jones's? Only 1 tip. Do whatever you can to marry into their family. :P Wowee. I am coming to check out availability. You can expect my knock on your door. If the first caller you see is a dishevilled man unshaven and smelly on your doorstep, longweekend58 got there before me.

Thanks for the offer,  but no thanks.

We're all married and/or partnered here atm.

Except for 2 toddlers who will most likely throw up all over you. :)

Lisa Jones wrote on Aug 4^th, 2015 at 12:22pm:

Stratos wrote on Aug 4th, 2015 at 12:16pm: Sir lastnail wrote on Aug 4th, 2015 at 12:09pm: why 20% ? why not 40 or 60 ? Mortgage insurance. Mortgage insurance is IMO, a waste of time and money. It is also not necessary if you have over 20% deposit on hand. NB You need to factor in legal fees, stamp duty etc hence why I keep stating AT LEAST 20 % in my posts.

Yeah, you need 20% or you are required to pay more on mortgage insurance.  That was what I meant.

Stratos wrote on Aug 4^th, 2015 at 11:44am:

bogarde73 wrote on Aug 4th, 2015 at 11:33am: Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. I never got this.  If you know you can pay the balance off within the time limit, why even bother with a credit card and just use a standard debit card which uses your own money :-?

If you use your credit card you get points, then after spending ten thousand dollars you might get enough points to buy a cheap crappy chinese kettle worth about twenty bucks.  ;D

Stratos wrote on Aug 4^th, 2015 at 11:44am:

bogarde73 wrote on Aug 4th, 2015 at 11:33am: Nothing wrong with using a credit card to pay all those things if you know you can clear the balance within the time limit and avoid the interest. I never got this.  If you know you can pay the balance off within the time limit, why even bother with a credit card and just use a standard debit card which uses your own money :-?

One reason is most transaction accounts have fees and the more transactions, the more likely fees will be triggered. Using a credit card for multiple transactions and then making one transfer in will avoid this.

Another is you may not keep enough funds in your transaction account for a large purchase. The card will do that for you.

Another is that some online purchases require a credit card unless you want to make a cash transfer upfront.

bogarde73 wrote on Aug 4^th, 2015 at 11:22am:

She's not saying that rusty. It's about day to day expenses. I can see people who are so desperate they resort to that merry-go-round but it's bound to end in tears.

I know some who do it, and then used one card to pay another so that by the time he worked his way through 6 cards, he thought he was getting 6 months interest free .... I've tried explaining to him the folly of having to pay $100 for a meal you ate and pood 6 months ago but he still thinks he's getting the better end of the deal

some people you just can't help

bogarde73 wrote on Aug 4^th, 2015 at 1:49pm:

Another is that some online purchases require a credit card unless you want to make a cash transfer upfront.

you can do that with debit cards .... I've never had my debit card refused online and I've had it for years

Lisa Jones wrote on Aug 4^th, 2015 at 11:11am:

1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End

I have a Mastercard and have more cash available in the current BANK account than both that card and the Myer card. I use the credit cards for the Internet and Foxtel and larger purchases.  I really NEED to do a very large spend up ... any clues on how?

John Smith wrote on Aug 4^th, 2015 at 2:02pm:

bogarde73 wrote on Aug 4th, 2015 at 1:49pm: Another is that some online purchases require a credit card unless you want to make a cash transfer upfront. you can do that with debit cards .... I've never had my debit card refused online and I've had it for years

You are not being precise, John Smith.

When I go into my online Bank I can TRANSFER money from my Bank Account (debit card) to my Credit Card Account.  Which I do every time I use the Mastercard.  It is easier than and most of my bills are sent to me via email so (for the Greenies) I am saving money as well.  ;D

Lisa Jones wrote on Aug 4^th, 2015 at 11:11am:

1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End

Fixed.

... wrote on Aug 4^th, 2015 at 2:41pm:

Lisa Jones wrote on Aug 4th, 2015 at 11:11am: 1. Get rid of your credit card/s. 2. Learn the invaluable skill of living within your means. The End Fixed.

Lol.

Fair enough  :)

Neferti wrote on Aug 4^th, 2015 at 2:34pm:

John Smith wrote on Aug 4th, 2015 at 2:02pm: bogarde73 wrote on Aug 4th, 2015 at 1:49pm: Another is that some online purchases require a credit card unless you want to make a cash transfer upfront. you can do that with debit cards .... I've never had my debit card refused online and I've had it for years You are not being precise, John Smith. When I go into my online Bank I can TRANSFER money from my Bank Account (debit card) to my Credit Card Account.  Which I do every time I use the Mastercard.  It is easier than and most of my bills are sent to me via email so (for the Greenies) I am saving money as well.  ;D

W T F?????

You can pay everything online using a DEBIT card. That's what we do.

We pay our bills online, go internet shopping online all the freaking time...but it's with a debit card which behaves like a credit card. So for example, when asked for your credit card number details, it is the debit card number details you give.

Unlike a credit card facility, we don't need to worry about interest rates or annual fees.. we just grab our debit card, go online and shop.

Lisa Jones wrote on Aug 4^th, 2015 at 3:42pm:

Neferti wrote on Aug 4th, 2015 at 2:34pm: John Smith wrote on Aug 4th, 2015 at 2:02pm: bogarde73 wrote on Aug 4th, 2015 at 1:49pm: Another is that some online purchases require a credit card unless you want to make a cash transfer upfront. you can do that with debit cards .... I've never had my debit card refused online and I've had it for years You are not being precise, John Smith. When I go into my online Bank I can TRANSFER money from my Bank Account (debit card) to my Credit Card Account.  Which I do every time I use the Mastercard.  It is easier than and most of my bills are sent to me via email so (for the Greenies) I am saving money as well.  ;D W T F????? You can pay everything online using a DEBIT card. That's what we do. We pay our bills online, go internet shopping online all the freaking time...but it's with a debit card which behaves like a credit card. So for example, when asked for your credit card number details, it is the debit card number details you give. Unlike a credit card facility, we don't need to worry about interest rates or annual fees.. we just grab our debit card, go online and shop.

Paypal is better. Gives you reasonably easier option to reverse a transaction if you didn't receive goods.

One thing to be aware of with debit card is if you information is exposed fraudsters can empty your account whereas credit card has a limit.

Unforgiven wrote on Aug 4^th, 2015 at 3:50pm:

Lisa Jones wrote on Aug 4th, 2015 at 3:42pm: Neferti wrote on Aug 4th, 2015 at 2:34pm: John Smith wrote on Aug 4th, 2015 at 2:02pm: bogarde73 wrote on Aug 4th, 2015 at 1:49pm: Another is that some online purchases require a credit card unless you want to make a cash transfer upfront. you can do that with debit cards .... I've never had my debit card refused online and I've had it for years You are not being precise, John Smith. When I go into my online Bank I can TRANSFER money from my Bank Account (debit card) to my Credit Card Account.  Which I do every time I use the Mastercard.  It is easier than and most of my bills are sent to me via email so (for the Greenies) I am saving money as well.  ;D W T F????? You can pay everything online using a DEBIT card. That's what we do. We pay our bills online, go internet shopping online all the freaking time...but it's with a debit card which behaves like a credit card. So for example, when asked for your credit card number details, it is the debit card number details you give. Unlike a credit card facility, we don't need to worry about interest rates or annual fees.. we just grab our debit card, go online and shop. Paypal is better. Gives you reasonably easier option to reverse a transaction if you didn't receive goods. One thing to be aware of with debit card is if you information is exposed fraudsters can empty your account whereas credit card has a limit.

Some very good points raised there.

This debit card however, never has more than 2K in it. In fact, it usually has 1K. Its sole purpose is for online shopping and paying bills online.

You know, my hubby does have Paypal. Might look further into why. I myself have never used Paypal. Thanks for reminding me about that.

Good topic. 

Many thanks to the person who had the initiative to start it.

Neferti wrote on Aug 4^th, 2015 at 2:34pm:

John Smith wrote on Aug 4th, 2015 at 2:02pm: bogarde73 wrote on Aug 4th, 2015 at 1:49pm: Another is that some online purchases require a credit card unless you want to make a cash transfer upfront. you can do that with debit cards .... I've never had my debit card refused online and I've had it for years You are not being precise, John Smith. When I go into my online Bank I can TRANSFER money from my Bank Account (debit card) to my Credit Card Account.  Which I do every time I use the Mastercard.  It is easier than and most of my bills are sent to me via email so (for the Greenies) I am saving money as well.  ;D

I was as precise as I needed to be ... I use my Visa debit card to pay for everything. Online and offline. There is no-one that will not accept a visa debit card over a visa credit card ... at least no one I've ever come across.

Whatever happened to Lay-by ?

You don't get the goods until you have paid for them in full or something like that ;)

Sir lastnail wrote on Aug 4^th, 2015 at 6:50pm:

Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;)

now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King

Lay by got replaced by interest free because interest free came with a credit card attached in order to get you hooked on credit and with lay by you couldn't rape the customer if they missed a payment or didn't pay the item off in time  ;D

John Smith wrote on Aug 4^th, 2015 at 7:09pm:

Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King

Sorry, can't help you. Don't know anything about lay-by.

Lisa Jones wrote on Aug 5^th, 2015 at 8:37am:

John Smith wrote on Aug 4th, 2015 at 7:09pm: Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King Sorry, can't help you. Don't know anything about lay-by.

some people are much slower than others

boom boom ;D ;D

John Smith wrote on Aug 5^th, 2015 at 10:51am:

Lisa Jones wrote on Aug 5th, 2015 at 8:37am: John Smith wrote on Aug 4th, 2015 at 7:09pm: Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King Sorry, can't help you. Don't know anything about lay-by. some people are much slower than others boom boom ;D ;D

Where's my slipper lol?

I use Xmas lay-by for the kids. Shop in the big mid-year toy sales and they store your gifts away for you until chrissie ... no sneaky little ferrets rifling through your stuff to find their booty.

Interest free and no deposit. Pay it off over 6 months. Brilliant.

Can't really see much use for it personally except for that but it's great for people on low incomes.

We use a debit card. Credit cards are a trap.

mothra wrote on Aug 5^th, 2015 at 11:03am:

......We use a debit card. Credit cards are a trap.

Good move!    http://i.imgur.com/KyapDYu.png

Everything has a valid use if used correctly.

That said........

Most don't know how to use them properly, & when they get close human nature......the gimmme...gimmme....gimmme voice inside all of us seems to inappropriately chorus in.

Most people will never learn to use them properly, so the banks will fatten up  due to perpetual human ignorance. Not that there's anything wrong with success.

Used as they will undoubtedly be used, in the end ,  credit card use, like socialism, will end because it's inherently unsustainable........eventually you must pay a price for usage.....nothing is free.

Unfortunately, humans don't always learn from their mistakes, so they will almost always be doomed to repeat them.   :-/

Lisa Jones wrote on Aug 5^th, 2015 at 8:37am:

John Smith wrote on Aug 4th, 2015 at 7:09pm: Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King Sorry, can't help you. Don't know anything about lay-by.

lay-by is about paying for things in FULL before you can actually have them. I'm not surprised that you haven't heard of the concept ;)

Sir lastnail wrote on Aug 5^th, 2015 at 11:20am:

Lisa Jones wrote on Aug 5th, 2015 at 8:37am: John Smith wrote on Aug 4th, 2015 at 7:09pm: Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King Sorry, can't help you. Don't know anything about lay-by. lay-by is about paying for things in FULL before you can actually can have them. I'm not surprised that you haven't heard of the concept ;)

Americans call it Layaway.

World Wide probably more people are familiar with that term than Lay-by. ;)

Panther wrote on Aug 5^th, 2015 at 11:41am:

Sir lastnail wrote on Aug 5th, 2015 at 11:20am: Lisa Jones wrote on Aug 5th, 2015 at 8:37am: John Smith wrote on Aug 4th, 2015 at 7:09pm: Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King Sorry, can't help you. Don't know anything about lay-by. lay-by is about paying for things in FULL before you can actually can have them. I'm not surprised that you haven't heard of the concept ;) Americans call it Layaway. World Wide probably more people are familiar with that term than Lay-by. ;)

Either term it's hard for the shylocks to profit from other peoples financial misery using this system which is probably why it has lost favour and been replaced with instant debt :(

Panther wrote on Aug 5^th, 2015 at 11:41am:

Sir lastnail wrote on Aug 5th, 2015 at 11:20am: Lisa Jones wrote on Aug 5th, 2015 at 8:37am: John Smith wrote on Aug 4th, 2015 at 7:09pm: Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King Sorry, can't help you. Don't know anything about lay-by. lay-by is about paying for things in FULL before you can actually can have them. I'm not surprised that you haven't heard of the concept ;) Americans call it Layaway. World Wide probably more people are familiar with that term than Lay-by. ;)

I think getting laid is more well known.

Lisa Jones wrote on Aug 5^th, 2015 at 11:01am:

John Smith wrote on Aug 5th, 2015 at 10:51am: Lisa Jones wrote on Aug 5th, 2015 at 8:37am: John Smith wrote on Aug 4th, 2015 at 7:09pm: Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King Sorry, can't help you. Don't know anything about lay-by. some people are much slower than others boom boom ;D ;D Where's my slipper lol?

you'll have to lay-by it.

John Smith wrote on Aug 5^th, 2015 at 1:24pm:

Lisa Jones wrote on Aug 5th, 2015 at 11:01am: John Smith wrote on Aug 5th, 2015 at 10:51am: Lisa Jones wrote on Aug 5th, 2015 at 8:37am: John Smith wrote on Aug 4th, 2015 at 7:09pm: Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King Sorry, can't help you. Don't know anything about lay-by. some people are much slower than others boom boom ;D ;D Where's my slipper lol? you'll have to lay-by it.

Tha fas xilo : P

Lisa Jones wrote on Aug 5^th, 2015 at 4:46pm:

John Smith wrote on Aug 5th, 2015 at 1:24pm: Lisa Jones wrote on Aug 5th, 2015 at 11:01am: John Smith wrote on Aug 5th, 2015 at 10:51am: Lisa Jones wrote on Aug 5th, 2015 at 8:37am: John Smith wrote on Aug 4th, 2015 at 7:09pm: Sir lastnail wrote on Aug 4th, 2015 at 6:50pm: Whatever happened to Lay-by ? You don't get the goods until you have paid for them in full or something like that ;) now you're showing your age ... I doubt most 20 yr olds have ever heard of lay-by .... credit is King Sorry, can't help you. Don't know anything about lay-by. some people are much slower than others boom boom ;D ;D Where's my slipper lol? you'll have to lay-by it. Tha fas xilo : P

promises, promises  :D :D :D

It always amuses me seeing real estate dickheads pissing down each others back as though it hides their true intentions of profiting by setting up gullible people for a lifetime of financial misery !!

Sir lastnail wrote on Aug 5^th, 2015 at 8:10pm:

It always amuses me seeing real estate dickheads pissing down each others back as though it hides their true intentions of profiting by setting up gullible people for a lifetime of financial misery !!

it always amuses me that no matter how much they piss, you keep swallowing.

John Smith wrote on Aug 5^th, 2015 at 8:11pm:

Sir lastnail wrote on Aug 5th, 2015 at 8:10pm: It always amuses me seeing real estate dickheads pissing down each others back as though it hides their true intentions of profiting by setting up gullible people for a lifetime of financial misery !! it always amuses me that no matter how much they piss, you keep swallowing.

real estate dickheads - they are so predictable you've just got to laugh at them :D LOL

Another good reason for using a credit card (assuming you can pay off the balance) is for those monthly bills - power, phone etc -  where you can just have a regular debit. That way you avoid forgetting paying bills that sometimes have a penalty of some kind for paying late or even have a reward for paying on time.
The alternative is to have the same arrangement against your transaction account, but there can often be fees attached to this service.

bogarde73 wrote on Aug 6^th, 2015 at 10:37am:

Another good reason for using a credit card (assuming you can pay off the balance) is for those monthly bills - power, phone etc -  where you can just have a regular debit. That way you avoid forgetting paying bills that sometimes have a penalty of some kind for paying late or even have a reward for paying on time. The alternative is to have the same arrangement against your transaction account, but there can often be fees attached to this service.

you can do that with a debit card

You get credit card points.