Comments on: You Don’t Need to Save Money–Just Use The Equity in Your Home!

By: mieszkania

mieszkania — Fri, 01 Feb 2008 12:05:29 +0000

Nothing new, once again a small group of scammers will benefit on the lack of financial literacy of the general public. Sad, but that is how it works…

By: Private Equity Partner

Private Equity Partner — Tue, 29 Jan 2008 13:17:30 +0000

Could not agree with you more.

“Ads like these really undermine what we are trying to accomplish, and it is a shame that some banks are contributing to the problem”

My parents worked so so hard to scrimp and save in order for them to pay their mortgage, they cut back on luxuries like holidays so that they can finsih paying off their mortgage at a relatively young age and enjoy it when they do. Ads like this go against and even try to reassure consuemrs that it is ok to get in to even more debt! Should be banned if not discouraged.

By: Richard

Richard — Sun, 28 Oct 2007 16:52:19 +0000

Here in Canada ING direct recently had a promotion with $25,000 prizes for people who set up an automatic savings plan (regular transfers in to their ING accounts). Unfortunately I didn’t qualify because I get a lot of money sent directly to my ING account – I only move it to my checking when I pay bills or want to put more in my investments.

By: Jake

Jake — Fri, 26 Oct 2007 04:27:20 +0000

Forget the bank, find a credit union. Credit Unions are not appreciably better with regard to the stupidity issue, but you are at least not contributing to some stupid jerk’s profit.

By: INHABIT AUSTIN

INHABIT AUSTIN — Thu, 25 Oct 2007 03:21:43 +0000

I’m seeing the retail branches in my neighborhood in Austin becoming more aggressive with these types of ads.

I agree with Hollis, banks wouldn’t haphazardly run the ad without first identifying and zeroing in on their intended market. The only thing that keeps if from being labeled a predatory practice is that they’ll offer the product to everyone. The borrower truly is servant to the lender…

By: Reboboth Beach Realtor

Reboboth Beach Realtor — Wed, 24 Oct 2007 06:28:57 +0000

I still don’t understand the marketing strategy because it’s highly unlikely that anyone who owns their home outright will go for an equity loan for a car or college tuition when they can essentially get a low interest “home equity line of credit” from any of the major creditors. It seems this type of marketing ploy is aimed at selling people “balloon mortgages”. Regardless, it will only add to the rising forclosure rates it the US. It’s a sad story.

By: Loonies And Sense

Loonies And Sense — Tue, 23 Oct 2007 14:28:08 +0000

This sounds very similar to an ad that plays on the radio in GTA: San Andreas.

Except that ad was intended as satire.

By: Harrison

Harrison — Tue, 23 Oct 2007 12:32:03 +0000

The funny thing is almost every statements in the ads asking people to spend money. So if you don’t have any money to spend, try to get more debts through you home equity.

Well, advertisement always like this, they are salesman and not financial expert. So their jobs are selling the home equity loan and not helping you to get out of debt. So what can we say? Just pray that not much people listen to their financial advice.

By: Reboboth Beach Realtor

Reboboth Beach Realtor — Tue, 23 Oct 2007 02:41:41 +0000

Fantastic article Jeremy, and I agree with you 100% about not incurring additional debt through a home equity loan. I own two homes that are motgage free and the only thing I’d possibly consider would br a low interest home equity line of credit if I were using it to upgrade or repair one of my homes.

The only thing I really don’t understand is the marketing strategy of the bank because it’s not exactly like most people who can’t afford a car or college tuition have a home to borrow against??

Anyway, just wanted to say “Great Site”, found you on Reddit and have subscribed to your RSS feed.

By: Hollis Waite

Hollis Waite — Tue, 23 Oct 2007 01:51:47 +0000

Not sure that this sort of advertising constitutes short term thinking on the bank’s part. Customers whose finances are in disarray can be quite lucrative. They accept high margin products, pay lots of fees and aren’t necessarily going to switch banks just because they got a raw deal.