Banks running scared....

[Kazz]

Is it me or has anyone noticed since the Northern Rock chaos of a few months ago Banks panicking....:? ....speaking to a friend today who has had their overdraft stopped, ie they have no money, and she was telling me another friend of hers has had her mortgage reduced by a different bank.
And reading the paper it seems lots more people are being refused credit/credit cards.
A friend of a friend who works for a mortgage brookers who has just said that from 5pm tonight the Bank of Ireland has withdrawn from the sub prime mortgage market, given a large Buy To Let company withdrew from the market the other day......I wonder if banks are tightening their belts or what....any speculation at all from anyone.:shock: ?

Karen

[EmmaG]

Personally I think the banks will be in trouble sometime in the future for irresponsible lending, either mortgages or credit cards/overdrafts. They do have a lot to answer for.

[Kazz]

Yes I agree but the whole "leanding" phenomenon is a newish one really isnt it. I mean how often do you hear people saying now "I ahev to save up for X - Y - Z" you just don't do you. I watch the TV ads for people to refinance their debts with my mouth open at times Perfect couples who say things to each other like "How much do we want to borrow...oh yes 25 thousand pounds please" and dont bat an eyelid....no wonder we are sinking in debt... this is a hobby horse of mine.

[EmmaG]

I agree Kazz, I think it is far too easy for people to borrow money rather than save for things they want. I know me and the OH have been like that in the past, but we are more sensible nowadays. It is far too easy to forget how these debts mount up.

[Kazz]

Yes I totaly agree. Paing by card always seems "innocent" to me but if I have to hand over cash..... Aghhh....thats scary.

[CathyW]

every time i go to the bank they offer me a credit card, and also a mortgage. they look at me as if i have 2 heads when i refuse. i will save for it or get 1 thing at a time from the cataloge,dont like debt,dont owe money either. and im proud of that as well :)

[Kazz]

Good for you although I have to say I do have a mortgage but minimal by todays standards,..

[dandysmom]

Having been a Depression baby I was raised with a horror of debt. My Mom was frugal and always saved up for purchases or used layaway (does that still exist anywhere?). I use credit cards responsibly and pay them off in full every month. People seem to have been conditioned to want instant gratification now, and end up with a mountain of debt.