Banks essentially are mass organisations which were put into place to protect the everyday persons cash from thieves and wives. Since then a horrible, ugly invention called debt was introduced. This essentially is a very stupid idea. The bank gives the person money that they use to spend on things that they can´t afford and then the person pays them money back with huge amounts of interest. Now surely this can be put down to the lack of patience among society today, the invention of fast food and the continual search for faster cars, computers and lifestyles. If people saved up for things that they could afford maybe then inflation wouldn´t occur because demand for useless products would fall and so prices would drop for all entertainment products. Also people would become more appreciative when they do get something they have worked for. "Sticking it on the credit card" is no way to live a life. But then people argue that it´s human nature to want and when reasoned out it comes down to people wanting something now more than they want to have more things in the future. It´s like saying to a child here is a chocolate bar if you don´t eat it now you´ll get six this time next year.
Okay so who takes responsibility to stop borrowing getting out of hand?
Governments, this personally I think this is the best answer. They should regulate banks and cap interest rates for all kind of credit at 2% above base rate (and that´s being lenient). This would then make borrowing a feasible solution to obtaining what you want now. But the government doesn´t because due to the selling off of industry in Britain it has become the service centre for the world. The result in having cheaper borrowing means millions out of a job because lets face it the amount of call centre employees who work in collections and the amount of small businesses that, like parasites, buy overdue accounts from major banks and threaten money out of people is at saturation level. The government is doing a balancing act of keeping the country competitive in the stock market by having major banks gambling all day on stocks with your hard earned savings and keeping employment levels high by having so many shops that are supported by people becoming more and more into debt. But this leads me to my next suggestion.
People are surely wise enough to say stuff your credit card and loan I´ll wait, and no not just until I´ve saved enough wait until the situation is that nobody´s borrowing and interest rates have to drop. Apart from a few individuals who transfer their balances like their hot potatoes looking for the best deal the majority don´t realise they don´t have to accept the crap they get from banks. MBNA and Barclaycard actually will offer you a better rate if you threaten to leave as will most credit card companies. This surely then points to the fact that if everybody left they´d dramatically drop APR´S. The RBS have just announced profits that are higher than the GDP of some small countries and are predicted to do even better next year, yet they have just launched a product with an APR that is almost half of their Natwest product and two thirds of their RBS cards. This is then a sign that in a competitive market then banks will adapt. Add into this mix a sudden drop in customer base and the banks would be cutthroat with their offers and for a few glorious years we could all benefit from amazingly low rates, but then that is only short term.
The final suggestion would be that Banks need to start acting responsibly and stop giving credit to people who cannot pay it back. Don´t give £10000 limits to a pensioner on their credit card and when they die owing £7000 tell the next of kin they need to transfer the debt into their name so that they can get their money back with interest still being charged as apposed to letting the estate settle the account in full. But the bank is just "a payment facility" and thrives on being able to tell customers we´re sorry we can´t help as we are only the method of payment. The banks can safely lift their hands and say that because people (many of whom don´t speak English let alone read) have signed terms and conditions, which give them the right to bend them over and shaft them for every penny they don´t have and then sell their details and personal information to the heavies who go to court and screw more money from them, they have no responsibility. When looked at in individual cases you can see how people could just smarten up on how to deal with finances but without English education making maths a compulsory subject at higher education their isn´t much hope of people even knowing what APR means or that they can have a fixed or floating rate mortgage.
Here are a few true examples of the banks stupidity:
The bank allowed a man to sign and send off an application for a credit card which states he has read and agreed to the terms and conditions of use. He then signed for the card when it arrived. He then called in to the bank to say he was registered blind and that he´d need statements in Braille, which until that point was unknown to the bank. A common occurrence in the world of credit cards is to offer people good balance transfer rates, what isn´t explained is that if you already have £2000 for example on your card in purchases being charged at an APR of 18.9% and you do a balance transfer then this effectively traps this higher charged balance on your card till you´ve completely cleared the preferential balance transfer amount. Give credit cards to people because the branch has filled in a form without permission from the account holder for a credit card when a switch card was requested. The credit card then comes through well before the switch card and the person uses this thinking it is a switch card in a cash line and is then charged interest immediately and also a cash handling fee. The switch card then comes through and the person calls to their branch to ask about the situation confused and is given the response credit cards are something that is dealt with by a call centre and nothing to do with the branches.
All in all banks are driving this country into the gutter sponsored by a government that won´t be in power long enough to see the terrible end of the mess their creating for future generations burdened with debt before they are born. It used to be that when people died they left their possessions with their next of kin, soon it will be nothing but a pile of bills that remain unpaid.
Rant by Unknown ( Currently in debt by £14000 to various bastard organisations)Return to Top