Credit card marketing offers big promises, delivers bigger bills
“It’s not just a check. It’s whatever you want it to be.” That’s the headline on an offer I just received from my credit card company. Gee, it sounds too good to be true. Hmm, maybe that’s the headline that ought to be there instead.
See, what I really want is to not have a big credit card bill in a few months that needs to be paid off before that super introductory rate turns into something heinous.
But you have to hand it the credit card companies – when it comes to marketing, they have sure figured out how to push our buttons. They hand you these special checks with appealing interest rates and tell you to enjoy life to its fullest.
Take a gander at what this letter offered me:
“It’s paying your bills.” Um, yeah, you’re technically just consolidating your bills into a bigger bill due later.
“It’s doing more on vacation.” Who can afford a vacation? Wait, apparently I can now. Sweet! Plus, when I get home, I can just pay my bills with one of these magical checks.
“It’s a night on the town.” And a super night on the town it would be! I mean, look at the credit limit they’ve offered. I could pull up somewhere in a big limo, walk in and say, “I’m having a night on the town to end all nights on the town. The drinks are on me. Party on!” And I wouldn’t even have to worry about what it costs, because I have these magical checks. How awesome is that?
“It’s extra cash in the bank.” Sure, that would be swell. I think I’ll write a check to myself that has an 8% interest rate that jumps to 14% in October so that I can start earning some interest in my awesome savings account. Although, my savings interest is less than 1%. Somehow that doesn’t seem to work, even with that “new math” they’re teaching my kids.
That’s where the marketing comes in. By sending us these checks they are tapping into our emotions. The sales pitch sounds too good to be true, but we have a hard time turning down “free” money. And they’ve found a way to make us feel better by, ironically, going back in time and sending us checks to use instead of plastic. Could it be that they know we still feel like we’re not going into debt if we write a check because checks don’t have interest rates?
We are a society now born and raised on credit. But how much do we really know about those wonderfully addictive pieces of plastic in our wallets? You can find out a lot more at a Frontline/New York Times Web site based on a PBS special. Take a look, and leave the site with eyes wide open and your wallet firmly closed.
Because it’s a line of credit. It’s anything you want it to be, and so much more.
May 2nd, 2008 at 2:33 pm
Exactly Ari,
All the more reason to promote a plan that is written, has goals, objectives and is measurable by weekly markers.
This helps to hit a future target which helps to avoid emotional pitfalls like what credit card companies offer.
The simple yet difficult task of adhering to a financial program based on solid budget practices. It is truly what we need to refocus on in today’s society.