Credit card - reduced settlement

Speedster said:
Blame the bank for your living beyond your means and now having to pay back the money?
Click to expand...
Well my means changed quite dramatically, through no fault of my own. The bank is unable or unwilling to hear that.
They earn 2x or 3x the principal through comparatively very high interest rates.
At the same time they continue to push more and more credit facilities to me every single time I log into my account, as with all customers suffering similar situations, because their calculations show that it will be a net gain for them, regardless of the societal damage highly leveraged debt causes.
To be clear I only have one credit card and only took an overdraft from all their loan offers which I paid off in full a few months later.

But way to side with the banks. After the past 18 months they are definitely the ones deserving the support and needing more money.
 
fidgit said:
Well my means changed quite dramatically, through no fault of my own. The bank is unable or unwilling to hear that.
They earn 2x or 3x the principal through comparatively very high interest rates.
At the same time they continue to push more and more credit facilities to me every single time I log into my account, as with all customers suffering similar situations, because their calculations show that it will be a net gain for them, regardless of the societal damage highly leveraged debt causes.
To be clear I only have one credit card and only took an overdraft from all their loan offers which I paid off in full a few months later.

But way to side with the banks. After the past 18 months they are definitely the ones deserving the support and needing more money.
Click to expand...
So if you had borrowed the money from a friend you would be happy to pay it all back because they "deserve the support and need the money" but because it's a bank suddenly you don't need to pay it all back?

Also a bank is a business not a charity. You borrowed x amount at an interest rate of y. You agreed to those terms. Why do you feel entitled to change those terms as it suits you?
 
fidgit said:
Well my means changed quite dramatically, through no fault of my own. The bank is unable or unwilling to hear that.
They earn 2x or 3x the principal through comparatively very high interest rates.
At the same time they continue to push more and more credit facilities to me every single time I log into my account, as with all customers suffering similar situations, because their calculations show that it will be a net gain for them, regardless of the societal damage highly leveraged debt causes.
To be clear I only have one credit card and only took an overdraft from all their loan offers which I paid off in full a few months later.

But way to side with the banks. After the past 18 months they are definitely the ones deserving the support and needing more money.
Click to expand...
I just find it ironic that people borrow money from banks and then get upset with the banks for expecting repayment
 
Jehosefat said:
So if you had borrowed the money from a friend you would be happy to pay it all back because they "deserve the support and need the money" but because it's a bank suddenly you don't need to pay it all back?

Also a bank is a business not a charity. You borrowed x amount at an interest rate of y. You agreed to those terms. Why do you feel entitled to change those terms as it suits you?
Click to expand...
Well no, a friend would understand and appreciate my predicament, have some compassion for where I am, and if he was as desperate for the money as I am, then I would make a plan with them that would try work for us both. He also would not have charged me the interest rate the bank did, or he would reduce that rate when he could see I was struggling.

Indeed banks are businesses. Do you not feel businesses in South Africa today have a responsibility towards the community they serve (including debtors) particularly in such desperate times? That they should work together with those in trouble to resolve issues like this? As mentioned its common for banks elsewhere to do that through reducing debt in a quick and simple agreement for partial payment in full and final settlement.
 
Speedster said:
I just find it ironic that people borrow money from banks and then get upset with the banks for expecting repayment
Click to expand...
Im not upset about the bank expecting payment. That I understand. I dont understand why banks here cant offer a service similar to many other countries when it comes to debt settlement.
I'm more upset that people have lost empathy for their fellow human, and feel the banks are more deserving.
 
fidgit said:
They earn 2x or 3x the principal through comparatively very high interest rates.
Click to expand...
In terms if the in duplum rule, interest on an outstanding amount will stop once it is equal to the original amount. They can therefore not force you to pay more than double the amount of the principal loan.

However, a bad credit record will follow you everywhere. It is best to approach your bank and make arrangements with them to cancel the credit card and accept a reasonable repayment plan.
 
fidgit said:
Im not upset about the bank expecting payment. That I understand. I dont understand why banks here cant offer a service similar to many other countries when it comes to debt settlement.
I'm more upset that people have lost empathy for their fellow human, and feel the banks are more deserving.
Click to expand...

Nothing is for free ! If you dont like a bank (or their rules), live by CASH !
 
fidgit said:
Well my means changed quite dramatically, through no fault of my own. The bank is unable or unwilling to hear that.
They earn 2x or 3x the principal through comparatively very high interest rates.
At the same time they continue to push more and more credit facilities to me every single time I log into my account, as with all customers suffering similar situations, because their calculations show that it will be a net gain for them, regardless of the societal damage highly leveraged debt causes.
To be clear I only have one credit card and only took an overdraft from all their loan offers which I paid off in full a few months later.

But way to side with the banks. After the past 18 months they are definitely the ones deserving the support and needing more money.
Click to expand...

If you went to church as a kid, you should have paid more attention to that 7 good years 7 lean years story.

You were obviously fine with the interest rates when you needed the money to do whatever (unlikely that it was all for a real emergency like car repair or medical) and I am sure you enjoyed whatever at the time.

FNB thus... I am bombarded by the same and I don't have any debt with them (no debt currently with anyone in fact), so go spin that BS somewhere else.

If fact, you know one of the reasons the banks charge such high interest rates on unsecured loans? To make it worthwhile to lend to people who are such a risk of not paying back.
 
Don't debt review it is absolute ****. If I knew then what I know now I would have approached the situation differently. Default. They will come at you hard to start in a few months of no payment they will offer you settlement less 30 percent sometimes more and clear you off ITC. I wasted all my cash on debt counseling then when you can't pay they cut you and you on your own anyway.
 
The ethical way if you are going overseas:

Keep the lumpsum in the account that they take the payments off, maybe it will tie you over till you complete the financial immigration process and have access to your RA, use RA to pay off the debt

Remember banks have shareholders, probably some of us or our retirement funds, so you are expecting us to settle part of your debt indirectly through loss of earnings?

Debt is kak, I have a bit from when I was between jobs and dental expenses, ill also be going overseas soon and will be doing the above (mentally I have written off my RA as I doubt much will be left or worth anything when I retire)
 
GhostSixFour said:
So wait.. You could go to a bank loan a fsckton of money, pay it over to a overseas bank account. Then claim insolvency and never have to worry about it?
Click to expand...
As far as I know - when you declare your insolvency you have to declare your assets, including oversea's based assets. If they catch you lying there I guess you will be in trouble for fraud.
 
Leno said:
As far as I know - when you declare your insolvency you have to declare your assets, including oversea's based assets. If they catch you lying there I guess you will be in trouble for fraud.
Click to expand...

Ahhh.. Let me fix that.

So wait.. You could go to a bank loan a fsckton of money, pay it over to an overseas bank account in your wifes name. Then claim insolvency and never have to worry about it?
 
Jehosefat said:
So if you had borrowed the money from a friend you would be happy to pay it all back because they "deserve the support and need the money" but because it's a bank suddenly you don't need to pay it all back?

Also a bank is a business not a charity. You borrowed x amount at an interest rate of y. You agreed to those terms. Why do you feel entitled to change those terms as it suits you?
Click to expand...
No but you see, he had no choice! He saw the banners on his online banking profile and before he knew it, he had an overdraft and spent it. It's not his fault at all.
 
zerocool2009 said:
Nothing is for free ! If you dont like a bank (or their rules), live by CASH !
Click to expand...

Not having a bank account is pretty kak actually, my partner closed their bank account as they had been unemployed for such a long time. We then tried to do various things like sales, policies withdrawals, temp job contracts, anything with my banking details - the people outright refused to send me the money with me being a third party.

We also tried other methods like cash withdrawals, e-wallets, etc - apparently it's really frowned upon. Not sure how other people survive without banks.
 
GhostSixFour said:
Ahhh.. Let me fix that.

So wait.. You could go to a bank loan a fsckton of money, pay it over to an overseas bank account in your wifes name. Then claim insolvency and never have to worry about it?
Click to expand...
To answer your question, ask yourself this: do you think that you are the first person to think of this workaround and would banks allow this sort of behavior?
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X