Finance …


Firends of mine who used to live in the states told me of all the credit card offers they used to get in the mail everyday.  These would be actual creditcards ready to use.  This is something that has not hit lil'ol New Zealand ... yet.


Today I open my mail and this is what I find:


- A pre-approval letter from my bank for a $15,000 loan (more if i want it).


- A pre-approval letter from a finance company for $60,000 (i have used them before a while ago).


I mean here in NZ we are used to banks automatically increasing your creditcard limit .. and you have to opt-in to opt-out of the increase ... but i found this latest round of finance options just amazing. 


No wonder NZ'ers personal debt levels are skyrocketing.  Lots of people would not turn down increases to credit cards etc... because so many people rely on them these days.


It almost seems unfair ... it is like giving a still to an alcoholic!


Comments (8)

  1. Andrei Ignat says:

    And you think it is a good thing ? Personnaly, the only good thing I see is financing your start-up with this money – else it’s a long burden on your shoulders

  2. chjohn says:

    No i dont think it is a good thing at all! Most people would take this offer up and spend it on pointless toys.

  3. Cera says:

    Hi. I would like to know exactly who gives out these credit cards….cos the biggest problem in NZ is that no one will provide low income families with the resources to draw from to pay bills and what not. They only offer them to people with good credit….maybe it is a good thing. Cos at the moment the rich keep getting richer and burying the poor. And the hole gets BIGGER and BIGGER….and lil old benefit bludgers like me have no choice but to be on a benefit. At least if you have a higher income you pay off that debt. I think people should stop thinking about themselves as individuals and start looking at this country as a whole.

  4. chjohn says:

    Hi Cera,

    I am no financial guru … so really am not qualified to comment.  However, in this case i just cant help myself.

    I would suggest to you that paying your bills using money you dont have is a silly idea.  Why, because if you dont pay your credit card off that month then you will also get charged interest … and then you have even LESS money.

    "They only offer them to people with good credit….maybe it is a good thing"  — I you were in business would you give your money to someone who has a track record of not paying it back?  I wouldnt.

    How do you think the rich keep getting richer?  By getting lots and lots of credit card debit?  No.  They do it by using the money they have to make more money … not spending it on things that cost money.  That has nothing to do with how banks give out creditcards or how the country is run.

    "and lil old benefit bludgers like me have no choice but to be on a benefit"  — how come you have no choice? eveyone has a choice.

    "I think people should stop thinking about themselves as individuals and start looking at this country as a whole" — people will always look after themselves first.  That is the way humans are programmed.  If everyone thought for themselves instead of expecting others to provide for them then the country would be better off.  We would produce more, pay less tax & be better off for it.

    I would not complain about not being able to get a credit card … it is a blessing in disguise.  I have had credit card debt before and it is a million times harder to get out of than people think when they are buying the toy they cant afford.

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