Advantage to the debtors.

[The BDI]

Hi, newbie here. 

Yesterday I had an amusing  situation arise... I had applied for an account with a local timber merchant, part of a national chain some days ago. I did that because of the huge...and I mean huge discounts available to credit account customers that do no apply to cash customers (WTF ???). I'm talking here of decking, premium av at that store for $2.25 plm , as against B*****s for $4.50 ish, and coated screws at $12/200 as against M**** for $28

 Hearing nothing I called in and spoke to the manager......

Apparently I have no credit references and no credit rating.. 

Correct I told him.. that's because I am not a debtor.    I explained that for the last two houses we built, I paid cash, and that the only reason I required an account was for the huge discounts available.

Got the account but only at a greatly reduced credit limit!  

So now its an advantage to be a debtor apparently .. cash customers need not apply.

Makes me wonder where the economy is heading  

The B D I

Totally backward if you ask me, but then so are most things in this world today. Once upon a time you were rewarded with a discount for cash purchases. Now it appears the tables have turned and you are now penalised for paying cash.

I don't know what others think but I think the cash purchasers should be the ones rewarded with discounts and offered credit accounts. To me a person who manages their money and saves who are able to pay cash for everything is in a better position financially, and they have proven they can save money and make regular deposits into their bank just as a debtor has to do with their debt, and so the two situations are basically the same except the cash purchaser has no debt so there is another reason cash purchasers should get the credit.

But we live in a world where certain people and industry make money from the desperation and despair of others which undoubtedly lead to poor decision making ie taking out a loan when they can't afford the repayments etc and ending up in huge debt from late payment fees, with no way out. Which brings me to my next point. Why are they lending money to people who can't afford the repayments? Just like they write you out of something they can write you in if they chose.

They make up and word these contracts with the knowledge that desperate people will be attracted to them. Still not fully understanding, they sign their life away because they are desperate. As hunni says its all about money.

Yep, so glad I escaped the credit trap 30 years ago... have not paid any interest to speak of for decades. Saved gazillions. I have but one credit card , a Platinum with enough credit to buy a small car, which I use as convenient and pay off on the dot.