Hi Starky,

Lenders are certainly expected to lend affordably.

How they go about assessing affordability will however vary from firm to firm.

On a high interest card, borrowings of £2400 would cost a fortune to service and for most people would be really difficult to ever fully repay.

I can see why you'd feel critical about what's happened here.

It's a good point, Starky, and lenders certainly are required to have systems in place to ensure they are lending responsibly.

I suppose there is a balance to be struck between being cautious where customers have had difficulties with borrowing previously but also ensuring that they do have access to credit, as it would be a shame if people that have been through a Trust Deed struggled to get any credit at all.

Hi,

When I finally took the plunge back into the murky world of credit cards a few years ago, I was astonished to find that my £300 credit limit shot up to £2k in about 6 months.
I had expected to struggle for years before anybody companies trusted me with credit again.

My take on it is slightly different though - it is possible to live without a credit card these days, but it does make life so much easier for modern living, such as online purchases/flights/car repairs and for the extra insurance you get by paying for things on a card under the Consumer Credit Act - so I am eternally grateful that any financial institution can trust me again.

It took me a lifetime to learn my lesson in how to use credit responsibly though, and I always stick by the golden rule - only use the card when I have enough funds to fully pay off the balance every month, and I always pay my bill the instant I receive it.
I still feel guilty when I use the card though, something that will always stay with me for the rest of my life.

After going through years of hell before my TD, there is absolutely no way I am ever going to allow myself to be in any sort of debt again, and I would think that the vast majority of people who have been through this would feel the same way.

Dare I say it, I am now a financially responsible person 🙂

Thanks for a thought-provoking post there, amorphous.

Whilst I can fully understand your viewpoint and applaud your self-restraint, I personally don't subscribe to your golden rule. There's no doubt there is an element of risk whenever borrowing money - what if your circumstances change out of the blue? - but to only borrow when you can afford to repay in full next month could be very limiting.

I suppose it depends how much you are borrowing and for what purpose really.