What Credit Crunch?

[Calaber]

I thought that money was tight at present. So how come I keep getting Credit Card application forms, with "pre-approved" loan limits of $10,000 plus, from institutions I don't, and never have, dealt with every week?

I know that the limits offered are small, but they are only "pre-approvals", probably, if I showed interest, the loan limit would be substantially raised as I have no debt at present.

Anybody else keep getting this unwanted mail?

[Reaper]

Go and try to borrow $30 mill and see how you go.

Reaper

[minux]

LOL reaper. As far as I am concerned there is no financial crisis. Only reason I know about anything is because it is so publicised, if i was not taking notice of news etc, I wouldnt know any different. In fact most people i have talked to have said the same.

[big balls]

no crisis yet but just wait for it it will be here sooner than you think

[minux]

no crisis yet but just wait for it it will be here sooner than you think

Maybe for people who have no savings, have insecure jobs and large mortgages. Anyone with half a brain will walk through this crisis unscarred.

[Scooter79]

If you've got a secure job and a variable rate mortgage then a recession isn't a bad thing. Petrol prices drop, interest rates drop, prices of goods and services drop.

On the other hand if you have a mortgage in WA and work for a mining company, you are screwed!

[greenfoam]

I've noticed heaaaaps of people losing their jobs the last 4 weeks. Unheard of for at least the last 5 years, it is happening no doubt about it. It'll take a year or two to soak in

[Full Spectrum]

I always get offered credit cards, Get calls offering me more on the limits, Guy today offered me a BP card with 5% off. I asked him can that get me BP ultimate because your ****en pump is empty right now !.
I got 1 foot still in the grave of bankruptcy and these ****s still offer me more ?.

[Calaber]

Go and try to borrow $30 mill and see how you go.

Reaper

Have you ever been offered or tried for that sort of money? Not really the sort of thing I had in mind, but I get your point.

Slick's response is more like what I was thinking of - the average bloke who already has enough credit to sink a ship and still gets these offers. There are too many out there who can't control their spending, or think that using credit to pay credit is sensible, then find themselves in so deep they can't get out of the hole they dug with the help of irresponsible lenders.

Wasn't this sort of irresponsible, wanton over-lending what caused the present problems in the first place?

[Reaper]

Have you ever been offered or tried for that sort of money? Not really the sort of thing I had in mind, but I get your point.

Me? No. Small loans (from the bank point of view) have tightened somewhat but overall. The guy on the street who is a good risk would not be affected one way or another.

Large loans to get major projects off the ground, or large bank to bank loans etc are a real problem right now, especially if you are trying to obtain a loan from offshore.

Slick's response is more like what I was thinking of - the average bloke who already has enough credit to sink a ship and still gets these offers. There are too many out there who can't control their spending, or think that using credit to pay credit is sensible, then find themselves in so deep they can't get out of the hole they dug with the help of irresponsible lenders.

Wasn't this sort of irresponsible, wanton over-lending what caused the present problems in the first place?

Yep - that is plain stupid. I did laugh that a few years ago I struggled to get a credit card with anything over $5000 limit. 6 months later I had a large mortgage and no job but the bank upped the limit to $23k automatically. At that stage I had zero chance of paying off any credit card bill let alone anything that huge.

Reaper

[danja]

I did laugh that a few years ago I struggled to get a credit card with anything over $5000 limit. 6 months later I had a large mortgage and no job but the bank upped the limit to $23k automatically. At that stage I had zero chance of paying off any credit card bill let alone anything that huge.

Yes you did! With your house! They're sly those banks...

[Astranomical]

Every now and then I get junk mail from American Express trying to get me to sign up for an AMEX card. What I do is take the reply paid envelope, seal it, empty, and put it in the mail.

[Johnsy]

I wouldnt know any different. In fact most people i have talked to have said the same.

I agree, if the media shut up about it all you would see is falling interest rates lower fuel prices and everything on SALE...

Every now and then I get junk mail from American Express trying to get me to sign up for an AMEX card. What I do is take the reply paid envelope, seal it, empty, and put it in the mail.

Lol i do the same, except i stuff the envelope with other junk mail/offers i get at the same time....

[mrhotdog]

Lol i do the same, except i stuff the envelope with other junk mail/offers i get at the same time....

i might try that nxt time ,lol

[Full Spectrum]

Have you ever been offered or tried for that sort of money? Not really the sort of thing I had in mind, but I get your point.

Slick's response is more like what I was thinking of - the average bloke who already has enough credit to sink a ship and still gets these offers. There are too many out there who can't control their spending, or think that using credit to pay credit is sensible, then find themselves in so deep they can't get out of the hole they dug with the help of irresponsible lenders.

Wasn't this sort of irresponsible, wanton over-lending what caused the present problems in the first place?

Yes stick two bad parts together and you come up with a debt. Both do come across as not very responsible..

My debt was a bit of both. I lived on my credit cards and paid them on time much like everyone else, easy money plastic money..
I made a single mistake trying to cut some interest off one and that was an error i haven't been able to take back. Then on top of that i trusted a so called family member in a light business venture, And got left with a bill and a car for a few months. Today the car is gone and I'm paying these debts. But this doesn't stop them from trying to give me more ?.. It's irresponsible of me to accept it - So i refuse. And it's irresponsible of them to keep offering it...

[vlv8vic]

I'm in a better position than i have been in years. the mortgage is vanishing much quicker, cars are cheap as chips and Ruddy wants to give me some cash.

I know jobs are vanishing, but i'm yet you know of someone who has lost one. I wonder if at times (and i say this with trepidation) do people hear that jobs will go and they see it as an excuse to bail from the workforce (i DO know of a guy who just quit his job but didn't need to).

I'm probably fortunate that i work for the government, however, i have worked my tits off to be in a reasonably comfortable financial situation.

[Keepleft]

Avoid those credit card applications, indeed - avoid that product altogether.

The safe option is the debit card Visa or Mastercard, where purchase can only bae made against money in the bank.

Ditto with Lines of Credit product, here the full outstanding balance can be called up for immediate payment, likely if the provider gets into dire straights. You will see this potential in the small print of ye contracts. Now is not a time to hold toxic debt (duh) or other optional debt, for many.

AUS holds some $43+billion of credit card debt. True that under the current situation increasing numbers of people are making greater effort at getting rid of it.

[big balls]

Maybe for people who have no savings, have insecure jobs and large mortgages. Anyone with half a brain will walk through this crisis unscarred.

so wat happens when the company that ur working for goes bankrupt due to lack of sales coz people cant afford it or cant afford to pay you anymore wat then

[minux]

so wat happens when the company that ur working for goes bankrupt due to lack of sales coz people cant afford it or cant afford to pay you anymore wat then

Will hardly go bust, we are now turning away clients. We simply do not have the manpower to deal with the workload. Financial hardships is where we strive as all business tries to streamline to save money. When times are good, our work is slow.

[big balls]

[QUOTE=minux;1029245]Will hardly go bust, we are now turning away clients.



yea for now only coz people still have money wait for another 12 months and see if ur still turning away customers

[minux]

[quote=big balls;1029581]

Will hardly go bust, we are now turning away clients.



yea for now only coz people still have money wait for another 12 months and see if ur still turning away customers

We have 3 clients who can sustain the business who are on 5 year contracts. If they breach they have to pay out. Which is why we hold no concern at all. Many new clients are now on 12 month contracts. The industry we are in work has increased across the board, there has been more hirings than firings etc. Not much will change. If people stopped talking things down people would stop panicking, was only talking to someone the other day who has been doing flat out shifts for 3 months, hasnt read news, listened to it etc, he couldn't believe we were heading towards a recession...especially seeing his last 3 months have been the busiest ever. This recession/financial downturn is going to hurt specific groups only, I doubt it will be the same as the 90's. If things do go bad, we have enough money saved to last both me and my partner having no work for almost 2 years. So for us, we are not worried at all and it is business as usual.

[Farlig]

Apart from the news i have seen no effects of this so called "crisis". I may change some of my spending habbits to increase my financial security, but i will continue to enjoy life and do what i do. I have no worries about the future.

[doms3]

Seen the bad of it lots of places slowing down and letting people go,but what I do iam busier than last year which Iam surprised about ,oh well 12 hour days aint so bad

[81caprice]

maybe for people who have no savings, have insecure jobs and large mortgages. Anyone with half a brain will walk through this crisis unscarred.

tosser comment.

[big balls]

tosser comment.

i agree about 98% of people will be affected in some way