Postal Obscenity!

November 15, 2005 by Nicola Cairncross
Filed under: Wealth Coach Diaries 

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Steve brought something to show me today that he had received through the post………and it was absolutely obscene!  I’m shocked to my core and don’t quite know what to do about it - write to Watchdog perhaps?

What was it that has upset me so much?  A credit card offer, that’s what. 

From Vanquis, it’s a VISA card aimed at people (and I quote) who have

been "turned down elsewhere, had payment problems or had a county court judgement…..we’ll still consider you".  Now I hasten to add that Steve has an EXCELLENT credit rating and never has a problem but this isn’t what shocked us.

The "average typical" APR was 58.65% with the range being 44.2% to 69.1% variable on purchases.

I can’t even begin to work it out (I would need one of Gill’s special calculators for that) but it means that if you buy something for £100 and just pay off the minimum, then each year you would pay back at least half as much again as the cost of the item, in interest.  That’s obscene!

They do say that they will reduce the rate for people who stay within their credit limit and who are prompt with their payments, and they do say that the best way to pay less interest is to pay off your monthly balance in full, wherever you can, but really! 

What chance has someone with poor money managements skills got of being able to do any of that?

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