Annual fees coming back

[sweetleaf]

I receive regular emails from this site, and have found the advice invaluable over the years, invariably saving money on mortgage rates etc...he has an uncanny ability to predict future trends, this is what hes got to say about credit cards, especially for those who pay them off each month,
www.fool.co.uk/news/comment/2006/c061120a.htm?source=ioowfeml004008

[Deleted]

sweetleaf said:

especially for those who pay them off each month,

That's not fair How ridiculous

[sweetleaf]

So far in 8 yrs I havent found one of his predictions to be wrong, he also predicts a crash in the housing market in the next 18 months-2yrs
He said all those who had been borrowing aginst equity would suffer worst.

[MamIDdau]

Oooooooooooh I do hope there is a price crash, I might be able to afford to get on the property ladder then!

I never thought there would be a property crash as people know now to buy any cheap houses as they are a good investment. Houses around here have quadrupled in price in 6 years. Unfortunately, the minimum wage is the most common wage around here so no chance of us being able to afford to buy anywhere.

[sweetleaf]

A price crash would definitely benefit first time buyers, Aprilaydee, but those who have bought already, and perhaps borrowed against the hugely inflated house value, will find themselves with negative equity, not a happy prospect.
This is already being observed in America, in areas of previous growth, properties are being abandoned... debtors choosing to allow banks to repossess now rather than later, when prices are predicted to bottom out... 30-40% lower than they are now.

[sleepysunday]

Good morning Sweetleaf

[sleepysunday]

Negative equity only affects you if you intend to sell though. If you are staying put it doesn't affect you, except that maybe your morgage payments go down if interest rates go down and your repayments are linked to the interest rate.

[sweetleaf]

Morning Sleepy ;D

[sleepysunday]

I've just weighed myself, and I've lost nearly 2 pounds since yesterday!

[sleepysunday]

I'm going to have to make home made curry again ;D

[sweetleaf]

sleepysunday said:

Negative equity only affects you if you intend to sell though. If you are staying put it doesn't affect you, except that maybe your morgage payments go down if they are linked to the interest rate.

It affects your credit rating Sleepy, banks know that you are in over your head.
I have quite a lot of equity, I view it as "ghost money" but it has boosted my credit rating .

[sweetleaf]

sleepysunday said:

I'm going to have to make home made curry again ;D

I wouldnt if I were you, ...... you didnt feed it to Hitler did you?

[sleepysunday]

But doesn't that only matter if you take out a lot of credit? I spend what I have. If I don't have it I don't spend it. I don't use a credit card, I have a debit card. My only loan is the morgage.

(am I old fashioned?)

[sleepysunday]

I wouldnt if I were you, ...... you didnt feed it to Hitler did you?

Naahhh. She won't eat curry. She had Heinz spag bol on bread and butter

[sweetleaf]

sleepysunday said:

But doesn't that only matter if you take out a lot of credit? I spend what I have. If I don't have it I don't spend it. I don't use a credit card, I have a debit card. My only loan is the morgage.

(am I old fashioned?)

Yes... its nice to be old-fashioned though, (when you think about it old-fashioned is getting trendy)

[sleepysunday]

Yeah Funny ole world, innit?

[Deleted]

sweetleaf said:

I receive regular emails from this site, and have found the advice invaluable over the years, invariably saving money on mortgage rates etc...he has an uncanny ability to predict future trends, this is what hes got to say about credit cards, especially for those who pay them off each month,
www.fool.co.uk/news/comment/2006/c061120a.htm?source=ioowfeml004008

Thankfully Barclaycard isn't on the list in the link

[sweetleaf]

I think its a case of "watch this space" Rita!
Banks tend to follow each others policies, the annual fees were scrapped in this way, and will return in the same fashion.

[piggingardener]

sweetleaf said:

sleepysunday said:

But doesn't that only matter if you take out a lot of credit? I spend what I have. If I don't have it I don't spend it. I don't use a credit card, I have a debit card. My only loan is the morgage.

(am I old fashioned?)

Yes... its nice to be old-fashioned though, (when you think about it old-fashioned is getting trendy)

My only loan is my mortgage too. If I can't afford, I don't have. I do use a credit card for online purchases and certain direct payments, but it is paid in full at the end of each month. I would never sleep at night if I was in debt. The only other item I have had on credit is my car but that was paid up 4 years ago. Credit cards are useful on holiday too. If you buy anything on your card, it's insured for three months. However, if they do start charging an annual fee, I shall cancel mine and just use the debit card.

[Deleted]

But you don't get the same cover when using a debit card PG

[Chuckles]

I pay for everything on my credit card, get cash back on it. Always always pay it off in full every month. Like PG if I can't afford it I don't have it. Only credit I have ever had is interest free and can count on one hand how many times we have done that.

Not everyone is as lucky I guess or is it down to living within your means. Not sure really, everyones circumstance are different I guess.

I do know people who have got themselves into terrible messes with money, and some of them never learn

[piggingardener]

But you don't get the same cover when using a debit card PG

Very true - but I have no desire to pay for the privilege!

[MamIDdau]

I got into a mess, not entirely of my own doing but at least I learnt. I knew some nasty, unreliable men a few years ago who cost me a lot of money and then I ended up borrowing money to pay my bills. I didn't know there were people out there that could sort stuff out for you such as debt management plans. Hey ho.