Lenders Really Do Think We're Stupid
George Boelcke CCP
April 28, 2008
Each and every day we are bombarded with ads from various lenders. What they are marketing, however, is debt and their goal is exactly the opposite of what you and I hope to achieve.
Here are seven different ones and what the lenders´ marketing departments are attempting to achieve, and some of their buzzwords. But don´t get trapped into the bankers´ language or they hype and misleading language of their ads. With banks, just like any other purchase, it´s always "buyer beware," and that´s something millions of families are finding out way too late.
Unlock the potential of your home!
Great! But the way this lender is thinking is probably opposite of what´s logical. They want you to borrow more and more money. That´s what they call potential. I call that trouble. Millions of families have already unlocked their potential and are now in or on the verge of huge financial problems and foreclosures. Or am I missing something about the definition of potential?
A HELOC ideal for your financial goals
Hands up if your financial goals include more debt and a faster track to going broke. Yea, thought not. A HELOC never gets you to your financial goals. It gets you a fast u-turn in exactly the opposite direction. A HELOC achieves the lenders´ financial goals of making a ton of interest from you and only helps you if your financial goal is to go as broke as possible and max out your debts. Sorry.
We have the answers to the questions you´ll have next week.
Oh really? One says: Yes, Gerry in Georgetown, you can afford that variable rate mortgage. Really? You have no clue who I am, what I make or what my credit score is, but you´re telling me I´m approved AND that I should get a variable rate? Isn´t that exactly what got us into this mess in the first place with adjustable mortgages and everyone qualified?
You´re richer than you think.
Now that´s something we like to hear. But I believe that kind of optimism leads us into debt and most people are actually poorer than they think with not enough retirement savings, or even an emergency account. Now if they want to make me richer, how about a lower credit card rate and dropping some of those high service charges and fees? And their ad on the ATM machines say: "Get ahead with good borrowing choices." Now that´s a no-brainer oxymoron isn´t it? If I´m richer than I think, how come all these ads want me to borrow? I´m confused - how does that help me get richer?
Posters at another bank´s branches promote "shoulda, woulda, coulda" with the line: You can, with a homeowner credit line.
The "could" part millions of people are painfully aware of, but we "should" go into debt with a line of credit secured by our home? How about we should SAVE, could get out of debt and WOULD - if they wouldn´t market debt so heavily!
Another lender says deal with them "for what matters."
Here´s a news flash: What matters to you and me versus the bank is probably quite different. That´s their slogan, and now they´re promoting getting a free fridge. Yes, if you move your mortgage to them AND get a line of credit they´ll give you a major appliance. I can assure you if I were to walk you through the math it´s NOT a free appliance, honest!
But here´s the winner of the most stupid financing ad: It´s an investment firm that wants you to re-mortgage your home so you can invest with them. And their tag line in the ad: "Don´t let all your equity stagnate." Stagnate? Sounds like three week old bananas or moldy bread! I thought equity was a good thing and the goal was to get the biggest equity in the world, which is when we pay off our mortgage loan.
Here are seven different ones and what the lenders´ marketing departments are attempting to achieve, and some of their buzzwords. But don´t get trapped into the bankers´ language or they hype and misleading language of their ads. With banks, just like any other purchase, it´s always "buyer beware," and that´s something millions of families are finding out way too late.
Unlock the potential of your home!
Great! But the way this lender is thinking is probably opposite of what´s logical. They want you to borrow more and more money. That´s what they call potential. I call that trouble. Millions of families have already unlocked their potential and are now in or on the verge of huge financial problems and foreclosures. Or am I missing something about the definition of potential?
A HELOC ideal for your financial goals
Hands up if your financial goals include more debt and a faster track to going broke. Yea, thought not. A HELOC never gets you to your financial goals. It gets you a fast u-turn in exactly the opposite direction. A HELOC achieves the lenders´ financial goals of making a ton of interest from you and only helps you if your financial goal is to go as broke as possible and max out your debts. Sorry.
We have the answers to the questions you´ll have next week.
Oh really? One says: Yes, Gerry in Georgetown, you can afford that variable rate mortgage. Really? You have no clue who I am, what I make or what my credit score is, but you´re telling me I´m approved AND that I should get a variable rate? Isn´t that exactly what got us into this mess in the first place with adjustable mortgages and everyone qualified?
You´re richer than you think.
Now that´s something we like to hear. But I believe that kind of optimism leads us into debt and most people are actually poorer than they think with not enough retirement savings, or even an emergency account. Now if they want to make me richer, how about a lower credit card rate and dropping some of those high service charges and fees? And their ad on the ATM machines say: "Get ahead with good borrowing choices." Now that´s a no-brainer oxymoron isn´t it? If I´m richer than I think, how come all these ads want me to borrow? I´m confused - how does that help me get richer?
Posters at another bank´s branches promote "shoulda, woulda, coulda" with the line: You can, with a homeowner credit line.
The "could" part millions of people are painfully aware of, but we "should" go into debt with a line of credit secured by our home? How about we should SAVE, could get out of debt and WOULD - if they wouldn´t market debt so heavily!
Another lender says deal with them "for what matters."
Here´s a news flash: What matters to you and me versus the bank is probably quite different. That´s their slogan, and now they´re promoting getting a free fridge. Yes, if you move your mortgage to them AND get a line of credit they´ll give you a major appliance. I can assure you if I were to walk you through the math it´s NOT a free appliance, honest!
But here´s the winner of the most stupid financing ad: It´s an investment firm that wants you to re-mortgage your home so you can invest with them. And their tag line in the ad: "Don´t let all your equity stagnate." Stagnate? Sounds like three week old bananas or moldy bread! I thought equity was a good thing and the goal was to get the biggest equity in the world, which is when we pay off our mortgage loan.