From the Desk of...
"From the Desk of Angie xxxxxxx
Dear Eric R Shoemaker,
It's not everyday that we offer one of our preferred customers a line of credit up to $75,000. Based on your excellent credit, I'm confident that you will enjoy the benefits of having a Prime Equity Line of Credit with us."
Ok, so I often get these types of letters in the mail. "You are pre approved", and "Approval is just one step away" Often times I sit here and think to myself; What are they really thinking? So, I have good credit, my Wife and I pay bills on time, we don't live beyond our means. Does this mean Wachovia really wants to reach out to us for being "good" with our finances?
I am sure this is an obvious one, but the answer is no. They want me to take out a Line of Credit so they can make a lot of $ off me. How cool is that? I don't have the numbers in front of me, but I doubt they would be willing to give me that if I demanded that the interest rate was 0% through the whole life of the loan. Why? Because then what would they have to benefit?
This brings me to an even larger concept. The rich get rich, and the poor continue to get poorer. I think back to growing up. My Mom had to buy a few cars at those "Buy here pay here lots". They advertise about how friendly their service is, low cost repairs, etc. But, who do you think they are really catering to? Or, are they doing someone a favor by giving them the chance to have a car where they might not be able to have it without good credit?
IMHO the answer is they are catering to the poor. They know people get in crisis situations and need things, whether they can afford them or not. So, what happens? High interest rates, fees, reposessions and you end up paying 5X what something is really worth.
Just something to think about the next time you are out on a Sunday Drive. Happy Easter.
Dear Eric R Shoemaker,
It's not everyday that we offer one of our preferred customers a line of credit up to $75,000. Based on your excellent credit, I'm confident that you will enjoy the benefits of having a Prime Equity Line of Credit with us."
Ok, so I often get these types of letters in the mail. "You are pre approved", and "Approval is just one step away" Often times I sit here and think to myself; What are they really thinking? So, I have good credit, my Wife and I pay bills on time, we don't live beyond our means. Does this mean Wachovia really wants to reach out to us for being "good" with our finances?
I am sure this is an obvious one, but the answer is no. They want me to take out a Line of Credit so they can make a lot of $ off me. How cool is that? I don't have the numbers in front of me, but I doubt they would be willing to give me that if I demanded that the interest rate was 0% through the whole life of the loan. Why? Because then what would they have to benefit?
This brings me to an even larger concept. The rich get rich, and the poor continue to get poorer. I think back to growing up. My Mom had to buy a few cars at those "Buy here pay here lots". They advertise about how friendly their service is, low cost repairs, etc. But, who do you think they are really catering to? Or, are they doing someone a favor by giving them the chance to have a car where they might not be able to have it without good credit?
IMHO the answer is they are catering to the poor. They know people get in crisis situations and need things, whether they can afford them or not. So, what happens? High interest rates, fees, reposessions and you end up paying 5X what something is really worth.
Just something to think about the next time you are out on a Sunday Drive. Happy Easter.
posted by eric shoemaker at
11:46 AM
2 Comments:
one of the best documentaries was on Frontline about the CC industry.
http://www.pbs.org/wgbh/pages/frontline/shows/credit/
IMO, CC's rate right up there with cigarettes. Such a horrible industry yet are allowed to still operate today, ruining lives.
Don't forget the site I sent you all at work.
http://41pounds.org/
I'd have to say that the university systems in general are also supporting the rich. I knew a lot of kids whose parents bought them mercedes, bmw's, lexus, $40k trucks, and harley's etc. tuition continues to go up because the rich continue to make and are willing to pay more money and the poor continue to borrow more which raises the price at an uncomfortable if not alarming rate. Students are getting into overwhelming debt and cannot support themselves post education. The rich it seems have enough money to got to college pay the asking amount with out worrying about debtors, go through school with out stressing about cash, food or heat have money to pay for nice looking projects and so on. The poor i fear , having the weight of a student loan on their shoulders have a much larger burden of pressure while perhaps not making as good of work not getting as good of jobs and having to pay interest on their loans, which can double or even triple the cost of the education.
the poor get jobs to pay for their education building systems for and educating the rich and live much differently. At times it seems to hint at a modern day serfdom. financial serfdom. we don't rent only apartments or buy houses and cars we rent the money from the rich to acquire the things that enable us to subsist.
the poor in our country are living better and education helps but the gap is getting bigger between the rich and poor. and i guess the question is what can be done.
Post a Comment
Links to this post:
Create a Link
<< Home