The bigger issue is whether banks should be allowed to continually increase unsecured credit limits without properly considering a customer’s ability to repay. Credit cards should be a convenience, not a licence to live beyond one’s income.
We need to take a serious look at the credit-card culture that is quietly pushing many households into a debt spiral.
Banks continue to offer customers large, unsecured lines of credit, sometimes far beyond what their incomes can comfortably support, and the temptation is there to eat, shop, travel and buy discretionary items today and worry about paying for them tomorrow.
At interest rates of around 24%, plus penalties and fees, what looks like easy money can quickly become a financial trap.
Gordon Laughlin
Westmoorings
