Trade credit spikes

[Ronski]

I got a letter from Ufa this week saying their rate is increasing from 18% to 24% compounded monthly so just over 26%
I canceled my charge account with them in 1999 so don't why they sent it to me?

I don't use trade credit any longer but when I started with almost zero I relied on it and credit cards a lot. A very expensive route but I made it work and was glad to be rid of them when I got going.

Just wondering how they justify a 6% jump in already ugly rates? Tough to be behind the 8 ball from weather issues and try to cash flow for a young guy renting land (no equity for a line of credit with FCC etc)

[AlbertaFarmer5]

I got a letter from Ufa this week saying their rate is increasing from 18% to 24% compounded monthly so just over 26%
I canceled my charge account with them in 1999 so don't why they sent it to me?

I don't use trade credit any longer but when I started with almost zero I relied on it and credit cards a lot. A very expensive route but I made it work and was glad to be rid of them when I got going.

Just wondering how they justify a 6% jump in already ugly rates? Tough to be behind the 8 ball from weather issues and try to cash flow for a young guy renting land (no equity for a line of credit with FCC etc)

I've always assumed that on loans where the rates are set that high, it is because the risk of default is equally high. Lender of last resort?

[Old Cowzilla]

Never seems to stop people from using their mastercards.

[Grahamp]

Rates are up 5%. This will filter through entire credit universe from payday lenders to chartered banks.