WelshLad
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More than £1000 limit.
More than 1 card.
Paying off the minimum and the interest costs more the next month. |
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cuddles_gb
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Once you start using the card, the credit company starts increasing the limit. And there is no limit as to how high that limit might go - 15 grand is not unheard of. On top of that, it's pretty easy to get 3 or 4 of them.
It is worth getting one and keeping it paid off if you can - it looks good on your credit rating. |
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eatitupwormshero
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Multiple cards + when you go over £1000 you are fined and then have to pay a higher rate of intrest. You can easily get into massive amounts of debt with a few cards maxed out. |
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Paul B
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Your credit limit is effectively your purchasing power. So you can go out and buy a fancy new TV for £1,000 - but you get charged interest on this amount until it has been repaid, and if you miss repayments your bank/building society will charge you a fee. That's how people get into so much debt (normally with multiple credit cards). A credit card is a very useful tool when it comes to organising your finances, but it's also very easy to abuse. Hope this answers your question.
PB. |
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reggie
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Credit card limits go much higher than £1000, depending on status |
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Oblivious
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credit limit varies from person to person, someone might have £1000 and another £10000 depending on credit score. |
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Princess Paradox
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My credit card limit is £10,000 so I don't know what you're talking about £1,000. As you spend more they give you a higher and higher limit at the same time the interest gets higher and higher so in the end you are barely paying off the interest each month so the debt just gets worse and worse. Plus, even if your limit was just £1,000, how long would it take you to pay back £1,000? If you don't pay it back pretty quick than the interest mounts up and it becomes harder and harder to pay it back.
If you really need a credit card then get one, but if you can live without it then I wouldn't recommend going there. I had to sell my house to pay off my last credit card debt and that wasn't from buying luxury items, just essentials that I couldn't afford on my pathetic salary |
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Heather roses
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Part of it is the interest if you only pay the min. each month the interest will kill you. Also if you are late on your payments those late fees rack up too. |
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SugarPlumFairy
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if you get a credit card they usually charge interest. what bank you use depends on how much interest they will charge for using their money, as thats what it is effectively!
i wouldnt advise getting a credit card, its not worth the hassle. i have never got one as i learnt early on that they were bad due to my brother's debts! i only have an overdraft and i stick to that limit...luckily im with nationwide and they charge me under a pound for being overdrawn!! |
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Lily B Talus
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I've got two cards with limits of £8000 and £12000...they seem to go up by about a grand every six months |
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carmay
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they pay the 1000pound off with a loan, so then they can spend another 1000pound with thier card, and pay that off with a loan they keep doing that and then at the end of their time where they have to pay their thousands of pounds worth of loans they dont have the money to pay them... if your getting one dont be silly with it, buy your nessesaties firist then if you have a little left over at te end of the month buy your self something nice.. that wont put you in debt |
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geriann81
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the credit card companies add on interest every month.
they also charge for late payments, etc. |
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rennickelizabe
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if you can afford to pay it off in full each month go ahead but to be honest i wish i had never got any at all they are too easy and too tempting |
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FM is going away.
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Because of the massive interest rates incurred It's not just paying back the £1000 you have spent, you have to pay interest on top. |
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ANF
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Though I am not in any debt I have 4 credit cards on which I could spend up to £3000 on each. In addition I have store cards with similar credit limits. I can also go over drawn by £2000 without giving notice and I have in the past taken out interest free loans for capitol purchases. I could, with the minimum pay up amounts coupled with the high interest rates on all of the cards be in debt to about £50000 at this time. It is easy to run up such debts and the use of a credit card should be checked all the time. Never spend more than to can see available as easy to pay off. |
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oliprofessor
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it's pretty simple, the limit varies, some people have several credit cards with an aggregate total of £30,000
if they blow the entire £30,000 and only have a yearly income of £15,000 then they've just spent 2 years worth of work - before any tax.
what happens? they're forced to make the minimum payment on their debt because that's all they can afford, so interest then racks up at the same time and it takes them 20 years to pay it off as a result.
Now, with that in mind, I have a credit card and I frequently rack the balance up to over £1000, but that's not a problem for me because I can easily pay the full balance off before the grace period ends and hence incur no interest charges.
Think of a credit card as a way of delaying the removal of money from your possession rather than as a way to spend what you don't have and you'll be alright.
and why is that beneficial? 1) you won't get in debt and 2) you earn interest on the money in your bank account that you would have spent upfront. |
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douglas m
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some folk have more than £1000 on a credit card (my in laws have crazy money limits on there's)
so people can get sucked in that way along with store cards and the constant offer of more credit.
my bank told me if i wanted another credit card i should MAX my 1 card out and pay the smallest amount back then they would give me another one. |
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MARIE S
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Yes. People might be able to obtain several credit cards and with high interest rates. Some people may lose their job or go out on disability or a family member in distress.
The really reason is flat out greed on the individuals side and the credit card companies side. |
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justagrandma
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The longer you have your card, the more you owe and repay regularly, the higher that limit will go. For the really high debt though its usually several cards held by people with good jobs and higher salaries, who have had lines of credit before.
If I added up all my lines of credit, it would be close to $250,000.
A sum I would never think of using. Many people put hospital and doctor bills on a card due to lack of insurance or co pays being high.
There is almost never unlimited credit on a card, with the exception of the ones that must be paid in full at the end of thirty days, or unless you are extremely rich.
One mans, or princesses essentials are anothers luxuries.
Not knowing the difference is the trouble. People just can't seem to understand that they cannot live with things that better off people can afford, we all think we can afford everything, and we can't. |
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clover_star31
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Usually a credit card's limit is linked to how much you earn and/or want. A company just gave me a card with a $12,000 limit, which is stupid because I don't earn twice that amount, so you can't trust a financial institution to give you an affordable limit. You can also get more than one card. Many people use one to pay for the other and this is a sure way of getting into trouble. |
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Smokey
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People don't know to have any control over their lives. They think they have to keep up with the Joneses and buy stuff to impress people they don't even like, and all that junk is going to end up in a yard sale one day anyhow. |
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Not A Moonbat
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I got myself into a hole for $8,000 because of mounting car repairs. I was stuck in a situation of older car, no money for another one.
For people with double and triple that amount, most of it is because of spending for the sake of it, plus the high interest rates. For example, they just bought the latest iPod and iPhone, two months later, Apple comes out with another and better version, so these people go out and buy the new ones, when what they have isn't even a year old.
It could be anything. Clothes, devices, food, etc. People are encouraged to spend money they don't have. Then when some people get so deep in the hole, they have to declare bankruptcy, it's no wonder other businesses suffer because now they didn't get the money for products they sold.
Not to mention in some cases the damage to the bankrupt person's credit. His buying power is greatly reduced.
It's easy to do too, that's the scary part. You figure, so much money in the hole, what's a few more dollars going to matter. You suffer a string of issues and keep paying with a credit card.
I've been out of debt for five years and I won't be doing that anymore. |
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Chrys
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uh....you have to have a thought here...not all credit cards have a $1000 (dollar) limit...and people have multiple credit cards and if they pay only the min. amount then they get behind and the more they get behind the more credit debt they rack up. (it only takes a little thought to get the answer..) |
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