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    • Banks pushed home equity lines and debt culture

      Posted by Jeff from International Herald Tribune

      Citigroup spent $1 billion advertising it's Live Richly campaign from 2001 to 2006 encouraging Americans to take out home equity loans. Marketing executives knew that "second mortgage" had an unappealing ring. So they seized the idea of "home equity," with its connotations of ownership and fairness. Advertising historians look back at the '80s as the time when bank marketing came into its own. Citigroup led the way by hiring away advertising staff from packaged goods companies like General Mills and General Foods, where catchy ads were more common. "Banking started using consumer advertising techniques more like a department store than like a bank," said Barbara Lippert, an advertising critic for the magazine Adweek.

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    andrewharry comments on:

    Banks pushed home equity lines and debt culture

    As you know that now days lots of people are facing problem because of debt so for that i have a free IVA Advice  at www.freeiva.net and debt relief services, free counseling, consolidation loans, low interest, IVA Facility at www.debtmanagementiva.net so please forward the link to your friends who are facing the problem because of debt

    Reply »

    1:41 am 11/20/08
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    mozellagi2000 comments on:

    Banks pushed home equity lines and debt culture

    Thanks !  What a refreshing dialog. 

    Here is the scenario that drives me crazy.  The person gets a 125 % loan. They buy a Harley with the equity. Value, economy or other factors create downturn. They lose the house and the Harley. 

    Here is the one that makes sense.  Person takes a reasonable home equity loan, up to 80%(I happen to like the term) Invests in the home, value remains at a point that they can sell and pay the off mortgage.  That person can bail at any time and not need help from anybody.

    The government cannot fix the fact that people can make bad decisions with  money they have in their pocket, where ever the money might come from.

    Banks are right to give people options with equity.  The problem is we are taking away the stigma of bankruptcy and allowing the same people to make the mistake over and over.  "I can fix your credit score" !  "Bad Credit No Credit, it doesn’t Matter" They might as well say " I can get you buried in debt again !" These are the phrases the government should go after.

     

    Reply »

    9:08 am 8/16/08
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    Jeff comments on:

    Banks pushed home equity lines and debt culture

    Interesting story about corporations search for profit quickly rolling over the ethical concerns of a minority of its employees…and reshaping our culture in the process. Interesting story earlier this week of same corporations now doing it in Turkey.

    Reply »

    10:48 am 8/15/08
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    Jeff

    Member since Dec 2008

    Jeff is the founder of NewsCloud. He is also a freelance writer and blogs at Idealog.

    Seattle


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