Got an e-mail ad today- this is their top line, to sell credit repair-

"Want To Improve Your Credit Rating To Maximize Your Buying Power?"

Maximize your buying power- maximize your debt is how I read it!  

Scary how hard banks, financial institutions, mortgage brokers, etc. try to sell extending your credit as far as you can.  

This in an era of increasing foreclosure, bankruptcy, financial difficulties. 

Tracy 

 

 Lenders have got to keep the ball rolling or they're in trouble. Since that's their bread and butter, they're going to sell their product. If they're not getting enough customers, they'll sell harder. Maybe it's a good sign?

I agree, though, it is irresponsible to keep selling credit right now.

What angers me is how thoughtless it is, trying to rope people into more credit and spending. That's what is causing this financial mess to begin with, doing a trade on people desperately wanting their own home, conning and manipulating them into thinking they can afford it with teaser packages, taking advantage of their inexperience in house buying and financial transactions, and now when borrowers are losing it all, throwing out a sheekpskin-like "help" by offering credit fixes. We've seen all kinds of homemade ads on garden stakes being put up next to offramps around here, advertising foreclosure fixes and credit fixes. It is like a wolf preying on a lamb.

In some instances the people losing their homes knew going into it that they couldn't afford what they were buying, buying mini-mansions or the like, so if they lose their homes because of short sighted thinking, well, that is their problem and they deserve with they get. The same goes with the ones who fell for the idea of "make your home equity work for you, borrow against your house and enjoy life." They made a choice and did not have to re-finance their house 125% (as the ads said.)  How many of those people are going to suffer now and possibly lose the homes they've had for several years because they bought into that idea, they otherwise would be breathing easy right now with the tight money to come had they not raised their debt level. They certainly weren't planning long term.  

The ones that I feel sorry for are the inexperienced younger people with young families who are just starting out wanting a house, know little or nothing about what it takes to get into a house, and they trusted the brokers and lenders to give them reputable information on getting a mortgage.What they got was a con job, all for the financial enrichment of the brokers or lenders making a bigger buck for themselves. There are no scruples, or ethics, in financial transactions anymore. It is take the money and run, while stepping on the backs of those who trusted them to do the right thing. Very sad indeed. E

Stay away from Debt Management Plans (DMPs) and all that.  If you do the numbers, they make a lot of money while you just get into more trouble.  It's amazing the credit card industry gets away with their marketing tactics.

John,

 I agree.  My brother and sil were looking into some some debt management programs and the "companies" really hyped it up, showed them a bunch of figures, made it look really good on paper.  What they don't tell you is that it puts a note on their credit history that they required debt reduction assistance. I called the company up just to see what they had to say even though I had already initiated a plan to reduce my debt and was making great progress.  They figured up a bunch of stuff and then said, if you can give us 1500 dollars, we can save you over 350 dollars a month.  Yeah, right.  My 1500 dollars is going right onto bills that I am going to pay off . . .

 Funny thing was, I talked to my brother and sil after they talked to the representative and described the plan - basically pay off your smallest bill then roll that money over on to the next bill and pay it off, then on to the next and so on. I went home and started doing that on my own and it didn't cost me a cent in debt management counseling.

Be very wary of these places. If you need expert advice, contact Consumer Credit Counseling. They are free and non-profit. These other companies are preying on the desperation of others. Jeweledsunshine has it right.