The Credit Roller Coaster

Ok, we have all seen the ads promising to lower your payments, decrease your interest rate, increase your p##is size, ok not those ads but those are also everywhere.

So what do these ads actually do?

Well in the ad above they mention the Mortgage Bill signed by President Bush on July 30

This bill promises to clean up this mortgage mess and bring financial freedom to millions of struggling home owners.

$700 Billion later we all know how that turned out.

I was curious so I went through the motions of following the ad above and what do you think I found?

Yup, you guessed it, shady marketing tactics to continually gather personal information in order to keep calling you to refinance your home or offer a quick home equity loan to buy all the things you ever dreamed of.

THIS IS EXACTLY THE TYPE OF ACTIVITY THAT GOT US INTO THIS MESS.

People don't need a home equity loan to take a vacation. People don't need to refinance their homes and pay thousands in closing costs for a few 1/10ths of a % of interest saved.

What people aren't realizing yet is that the credit splurge will become the credit desert very soon. High risk refinances will disappear, banks will not be able to give out home equity loans at the drop of a hat and credit card max limits will start to get lower and lower.

It's just sad that it constantly feels like we are riding on this giant credit roller coaster, when all we really need is just a bit more self control and responsibility.