This weekend I was driving down the road when I noticed a reader board outside a small town bank. The message on the board said, "Increase your summer fun with a home equity loan". Really? In 2008? The sad thing about this is that I’m sure someone will take that message and borrow money to make their summer more fun. I was hoping that people were starting to wake up to the fact that they should keep their spending in check and spend less than they earn. I suppose the reality is that the message hasn’t gotten to everyone. While millions of people struggle to make ends meet due to their mounting credit card debt, institutions all around the country are fighting to give them more debt. It sure seems unfortunate.
Along those same lines, I saw an article in the New York Times today that profiles a woman in Philadelphia (Diane Mcleod). She’s pretty much at the end of her debt run and is about to lose her house. Even after all of her defaulting, she still receives credit card offers. The last one she received could easily be called a predatory offer. It’s for a $300 limit credit card and $150 of that goes to the bank each year in fees.
I watch the video, and I’m sure she is not alone
Refinancing should be banned! it serves no purpose. They charge you for the loan (fees) and you still have the debt.
All you did was move it
This kind of marketing must still work, unfortunately. It’s almost like debt consolidation loans - get a loan to pay off all your debt - but you still have the loan debt!? The adverts that say ‘we can reduce your monthly repayments’ yeah - if you spread the term over 30 years of course the monthly amount you repay will reduce! I can’t beleive companies are still allowed to advertise like this.
I think debt is both the faults of the credit card companies and individuals. While credit card companies shouldn’t make false promises and take advantage of stupid people, individuals should take more personal responsibility and pay off their own debt and quit borrowing money.
For what it’s worth the problem is a global one. In the UK everyones currently struggling and home reposessions are up 25% year on year. A huge jump. I guess both of our governments need to do more to control creditors and protect families.
Very useful post. where can i find more articles about this issue?