Maybe they should introduce the German system:

• you can only have a credit card with a bank, where you already have a current account
• at the end of the month, the full balance on the card is paid off automatically from your current account
• anything you can't cover from your current account goes on your overdraught
• if you go over your overdraught limit, your credit card is frozen

It means that you can't run up huge debts and have to take care of your finances. It doesn't stop people taking out HP contracts etc. with shops, but they can't run up bills they can't pay on their cards and at the end of the month, they know how much in debt they are, because the whole balance is on their current account.

Yes but in Germany the average person has decent levels of savings that is not the case in the UK. In the US they were planning to introduce vanilla credit cards with fixed rules and fees, the only difference was the interest but they had to warn borrowers in advance in writing of any changes to interest rates. The banks lobbied against such a measure because it would have severely reduced their income from fees and penalties.

There's a very simple solution: pay off your credit card bill in full every month.

Of course, people don't, and then complain about being charged interest.

My card has an APR of 15.9%. The interest on my last statement would have been about a tenner, only I cleared the account in full. This is because I know that if I spend money I don't have, or can't afford to pay off the balance, then I'm going to end up in so much deep doo-doo that I'll drown.

There's a moral in there somewhere, but it escapes me.

There's a simpler solution

Don't have a credit card.

Works for me

Good point, well made.

I wouldn't have one, ordinarily. I got into a bit of a pickle with one in my younger days. Once I'd reached a more sensible and prudent age, Best Beloved and I agreed we could have a card to make online purchasing a bit safer. Of course, now Visa is finding its way into debit cards as well, the need is somewhat mitigated.

Thankfully, I manage to resist the temptation to spend, spend, spend until I hit the credit limit.

Oh, you were serious?

No, most of the people I know have little or no savings. My girlfriend is happy, when she doesn't dip into her overdraught at the end of the month. She bought a new television 2 years ago, she had to scrimp and save every month for 9 months, before she had the money together to buy a cheap Medion job from Aldi!

They might not run up such huge debts so easily as in the UK, but most still can't afford to save much. Most consider themselves lucky if they can put away a few Euros each month for a pension plan.

Yes, there are lots of wealthy people around, just as there are lots of wealthy people around in the UK, but they aren't the average person.

I have said that for the last few years and people have always said I was wrong.

That sounds like a very constrictive American Express.

My cards aren't with my bank, I have one for spending which gets paid off a fair whack each month as it's still in the interest free period and one which has a small amount on it already and is for emergencies.

I find it funny that should I need to, after cancelling all my debts the only thing I would have an issue with is my student loan and account simply because of increased expenses travelling to uni every day, other than that negative debt free (calling a student loan positive debt as it's an investment, like a house).

As for the can't afford it brigade... rubbish. If you want something enough you will make other sacrifices. I'm still making some now with having to stop any non essential spending to buy my last car after the engine blew on the old one. Managed it though, same with my laptop, holiday, pc upgrades, and what will be a PS3, it's all things I just cut back on.... Mainly luxuries when shopping.

Having a credit card and not using it can still help improve your credit history, which may be beneficial when it comes to getting a mortgage.

You are. Credit cards are sometimes useful. There's the purchase protection afforded you by the Consumer Credit Act and the fact that they help build healthy credit ratings if used properly.

However, most people don't use them "properly". Me included.

No offence to anyone, but moaning that people should just pay them off etc. etc. is rubbish. People want these products, so the market will offer them. Basic economics.

I hadn't used a credit card for about 6 years, until I tried to get into the UK, when my mum was ill. Without a credit card, I couldn't book a flight to the UK. I could pay with a direct transfer or invoice, but I couldn't use my passport to identify myself, I needed to show my credit card at the counter to get my boarding pass!

I use my credit card for the odd website that won't deliver on invoice.

Precisely. You put money aside to buy stuff. Most of the things people seem to buy on credit are not necessities at all.

I use my card for large transactions, particularly over the internetz. We (it's my card, but we use for joint purchases) use it to buy second-hand cars, or when repairs are required. The point is, I won't use it if I know I can't already cover the cost another way, or soon can. Only once have I not paid a balance off in full.

I see no benefit to spending on the card, and building up a huge debt through it, and then just paying off the minimum each month. What good does that do except dig a deeper hole. If you live beyond your means, borrowing is not the way to solve the problem.

I was brought up to understand the value of money. If I wanted something, I had to save for it. I still do that now. I could easily slap my card on the counter and buy the new camera and lenses I have been after for a couple of years now, but I know that I'd regret it when the bill comes in. Until I've got enough saved up to cover the cost, I won't buy, no matter how much I really want it. Simples.

I appreciate that the average person does not necessarily have a lot of money. In the UK the average savings is as little as £150. Above that and you are above average!

, I'm well above average

I pay the card off every month - wouldn't have it otherwise...