Submitted by Metoo.
Rant time!
And if anyone would like to point out a different view with this type of ad, I'm all ears. So.
O.k. after the millionth time of seeing these stupid ScotiaBank commercials during hockey games, I've blown the gasket. And I can't believe institutions at the level of a national bank can get away with prattling this crap.
They are helping you find ways to stay in debt people!! The "richer than you think" means that they will help you restructure your loans so that you can buy more crap and spend more money. Then you can stay in deeper debt, for a longer time, all with one LOW MONTHLY PAYMENT! That's called wage slavery folks, you gotta keep suckin it up to the man, so that you can pay your dues.
This behaviour by ScotiaBank (and all of them of course, but here it's just egregiously advertised) is no better than those "Credit Card checks" you get in the mail. You know, the ones with the text that says, "Now you have the cash to buy: that surprise vacation, or new widescreen TV, or get that dream boat you've wanted".
It's NOT cash! This is simply the 'high end' of Payday loans. And I find it reprehensible, just different shades of loan sharking.
If you're not rich, then your not rich. Think about it!
Tuesday, April 29, 2008
You're NOT richer than you think!
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.: 07.05.08 
$6,725,000.00 (est*. as of 07.05.08)
Speed limits were designed to help improve fuel efficiency and assist drivers in avoiding the risk of fatality at high speeds, but everyday, thousands of Ontario motorists fail to travel with the flow of traffic or obey speed limits because they are distracted, careless, poorly trained, in a hurry to reach a destination or determined to simply speed or race because they want to.
21 comments:
*ahem*
Not to be picky or anything but if --you're-- going to GO BALListic on people for bad grammar, take a look at --your-- grammatical mistake.
Wasn't there a saying on here, pot meet kettle or something like that.
Yeah. I. so. went. there.
metoo - I agree - ALL financial institutions are in the money making business...like all other businesses. They make money from people defaulting on payments, having to pay off credit cards, going bankrupt etc. That is a fact. So they have to make their commercials enticing to make people feel that they DO have the money to spend. It's a vicious circle. Bottom line - don't spend if you don't have it and don't let anyone make you feel you need to spend more then you have to spend.
Who wants to be paying off debts all their life? and risk the chance of loosing everything they have ever worked for?
Consumers -- Loosing -- money is how the banks make money.
Hi Brenda, a thoughtful criticism deserves taking a moment to respond. Also, I appreciate that you read and commented. Thanks.
I thought it was obvious that labeling the post as a "rant", that I wasn't aiming for a Pulitzer in journalism for this particular piece. Also, I have to say upon re-reading it (which I did do because of your comment), it looks reasonably coherent and still makes its point to the reader without undue confusion. Were you not able to understand my writing?
As far as going "BALListic" about other's grammar. When have I done that? Certainly not for anything short of illegible "rly bad crk bry spk u no?".
thx 4 rdng tho, i rly lik dat ppl rd my stuff :) :) :)
PS. it's "losing" :D
Bean, you're so right. But isn't it the worst kind of bamboozling? I mean, this sort of thing borders on confidence scams, and I fear that younger generations who will never have known a cash economy will get suckered without mercy. Sub-prime meltdown anyone?
I guess my attempt at satire was lost.
I was totally yanking your chains. Peace.
OUCH!!! LOL good one! ... and here I am yanking other chains. and while i'm not looking i was totally PWN3D!!
I've been doing a crapload of reading about personal finance lately, and ranting about some of it over at the blog ... and I've come to understand that most people really *are* richer than they think.
What gets you rich isn't the money you make ... it's the money you save.
If you can restructure your payments and cut your costs, and most of all, find ways to act your wage and spend less than you make, then save and invest the difference ... well, you can be a lot richer than you probably imagine.
Sure, a bank is going to try to sell you its products to get you there ... Scotiabank mutual funds, Scotiabank consolidation loans, Scotiabank low-interest credit cards or credit lines instead of the cards you may have with other banks ... what else are you going to do? Stuff your cash under a mattress and try to get rich that way? Odds are, you're going to deal with a financial institution at some point if you're serious about laying out your money in any productive way beyond money-in/bills-out.
Scotiabank wants to be the bank to open your eyes to those possibilities, then sell you the investment vehicles. I don't fault them for that.
As for the credit card cheques -- yeah, they get torn in three and put into the recycling and trash. I don't need 'em. I'm still on the first set of cheques I ever got, more than ten years ago ... I certainly don't need any tied to a credit card.
I have my own 2 cents to put in here if you all don't mind.
Last nov 5th, I had to call 911 for my hubby.. for details to long we wont go into right now, he spent 18 hrs in the emerg room. Finally the specialist showed up, said another half hr he may not have made it.
Needless to say, he's in the hospital till about x-mas, not earning anywages etc
I have to deal w/ his credit card companies. All but one were very understanding. The one that is not, and heres the fun part..they are still sending us our monthly statement, which we are paying on time. yet they seem to have sicced a collection agency on us, that wont stop the harrasing calls, they have even gone so far as to call my 38 yr old husband an inmature brat, tell him to behave like a man, etc.. you get the point!
The killer is, they want almost $750 more then what we owe the company!!
go figure.
BigAss, first I'd like to thank you for commenting on my post... I can now stop my quiet, bitter vendetta :b
But also, I couldn't agree more. If one restructures debt to allow for quick paying of 'bad debt' (Credit cards, car loans), and manages 'good debt' (mortgage, and appreciating assets). Then yes, you *could* be richer than you think if you invest the difference.
Sadly, I don't think people are as smart as you to proceed this way.
Also, I'd shred not rip those checks, and the same for all the CC apps you get. You'd be amazed how few times a human actually sees paper at these institutions, and scammers simply tape the stuff together, fill it out and send it in. Nobody knows for ages sometimes.
And those checks aren't the same as your bank account checks of course. They are drawn against your CC and charge CC interest (big time) as soon as they are 'cashed'.... nope, not good thing at all.
metoo
I am on permanent disability, have been since 93. I have never had a credit card, nor do I wish to. Yet every wk, I get the trash mail, w/ the fake cards in them, saying this amount could be yours... I shred them. Thens there's the spam mail on the comp... young people need to be taught that this is just bait and hook selling tactics, and really they need to learn b4 they sign up for that fast easy cash fix.
"Sadly, I don't think people are as smart as you to proceed this way."
Well, hearing people complain loudly that they'd get themselves out of debt if only they could learn how to spend less than they make and take care of personal business is about as easy to tolerate as people complaining loudly that they wish they could learn how to spell Connecticut. Bottom line -- if you want to learn how to do it, learn how to do it, then do it ... the resources are right there.
If you're complaining that Scotiabank is playing on stupid people, go right ahead. You'll never go broke underestimating the intelligence of the average person.
If people aren't "as smart" as me to proceed in a way that gets their debt paid off so they can put more of their income -- their 'riches' -- into things that matter and/or work for them ... well, I can't blame the bank for that. The bank is there as a tool.
If people get suckered into buying houses they absolutely cannot afford by banks that use predatory lending practices and exotic financial products that are beyond the comprehension of even an educated buyer -- that's bad. I don't like that.
But if people willingly spend themselves into a big hole by devouring all the credit they can get, then cry foul because they were *given* the credit -- I don't rail at the bank. It's not the bank's job to protect you at every turn from outspending your earning capacity.
Back to the checks ... one slice goes in the recycling (one dumpster) ... slice goes into the recycling (different dumpster, different day). Another slice may go into the kitty litter. And if someone's willing to do all that dumpster-diving, they've earned temporary access to my credit card.
Back to the checks ... one slice goes in the recycling (one dumpster) ... slice goes into the recycling (different dumpster, different day). Another slice may go into the kitty litter. And if someone's willing to do all that dumpster-diving, they've earned temporary access to my credit card.
LOL BigAss you are one smart dude. When I can't shred something in my little 6-pager, I do almost the same thing.
But on the topic of 'predatory' banks, suckers, and digging debt holes. I can't disagree with anything you say. "Victimhood" of borrowers is not what I implied by railing against ridiculously transparent bank ads. And I might add that the "richer than you think" ads are not selling your notion of consolidating debt, living within your means, and investing the difference. Watch them. They are flogging granite counter tops and breakfast nooks, a literal quote. (not sure if you get the same ad cycle on CBC during hockey games in NS).
By being "smart" I stand by the fact that indeed, generally people aren't as studied on the topic of finance as you are. In fact, vast swaths of the population are desperately innumerate (which is worse than the literacy problems we see from time to time, but that's another debate). People just don't get numbers. They avoid the math, and are happily sucked dry by organizations that know how to benefit from the math, and legal wording on contracts as well.
Ask 100 people to explain concepts of finance like amortization, compounding, loan payment calculations, leasing calculations, inflation, real rates of return, present values, etc. I bet very few will be versed to any depth sufficient to analyze their own finances competently.
Banks love this of course, so do other businesses (car dealers?!).
Combine with relentless mind bending marketing... and wa-la, "you're richer than you think".
Ah, that's what I get for not watching commercials. Thanks to the home-brew PVR, the only commercials I see are during the 11-midnight news hour. (Or as we call it, the Lloyd Robertson Rehearsal Show.)
It sounds like you'd get a good "rah-rah!" kick out of a movie I saw on the weekend: In Debt We Trust. I wrote about it over at the bas-dot-com.
Granted, a lot of people can't do the fancy math or comprehend annuities and amortization and all that. Hell, I can't even do a convincing job of explaining short-selling to my coworkers.
But if you can't lay out a simple household budget that doesn't put you deeper in the hole each month -- seriously, don't blame the bank. The basic concepts of *spend less than you make* and *save for a rainy day* don't require a special calculator. If the numbers don't add up in your favour, you have two basic choices: spend less or make more. Adjust your lifestyle by sorting out wants from needs (you *need* a place to live, you *want* it to be a nice house) and adjust as necessary.
I can't blame the banks for making people poor any more than I can blame McDonald's for making people fat or "the media" for making people anorexic.
Advertising can be persuasive. Home improvement shows can skew your expectations. Keeping up with the Joneses is also persuasive. Carrying bad habits from your family of origin can lead you astray. Pride can jam up your urge to reach for help. Fear of math can tempt you to ignore reality.
But to flail your arms at the end of the month when you're in overdraft and facing maxed out credit cards and scream "I can't help it! The banks made me do it!" is a lie, an excuse, and a cop-out.
Wow, that's harsh.
Harsh? Truer words were ne'er spoken.
And yeah, the commercial is quite literally a live representation of those CC checks.
And i'm not blaming anybody for making money from the uneducated. It's all within the law of course. But people CAN avoid being suckered.
But I think we've beaten this one to death (for now).
Fair 'nuff.
Giga/me2: this discussion flows nicely with what I've been doin' at my blog ... arrite with you guys if I repost the article & back-n-forth over there, with linkback to here?
How did it get bad. Was it plastic? Was it instant access to money? Why did people start to spend more money and have so much trouble?
I thought it was good talk too. I am sure Miss Gigababy would be fine.
I'm cool if Gig's cool...
BTW, I saw your saving money post earlier this month. I enjoyed it and we've done more or less the same things along the way. The only thing I didn't agree with was the rent/not buy point. I acknowledge the counter argument, but as we've laid out here, you gotta be "smart" to pull it off.
Ledad - I think things are like this because of a lot of reasons. One is the gradual move by governments to "print money" (where before money was "asset backed"). This could be a whole new blog, but tell me something, do people use debt financing and credit in Turkey? I know in European countries it is less common than here.
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