Terrible Commerce Bank HELOC ad

[disneysteve]

I heard an ad today for Commerce Bank HELOCs. The father is having a family meeting. He wants to get a HELOC at Commerce and is looking for ideas on what to use the money for. He wants to install a half-pipe in the backyard. His daughter suggests using it to consolidate their credit card debt. His son says to use it to pay college tuition.

What an irresponsible ad, especially given current market conditions. This guy is going to take out a loan just for the heck of it when he doesn't even have a reason or need for the money. No wonder this country is in the shape it is in.

[Slug]

Perhaps he's going to extract the money while he can before the credit market tightens to a place where he can't get any liquidity anywhere. If he doesn't have an EF and parks the HELOC cash in a CD, then maybe it's only slightly stupid instead of very stupid. Good article on continued borrowing in today's WSJ. More people tapping their 401k as creidt lines dry up. Let's see:

1) selling 401k at the market bottom CHECK
2) using that $ on something likely less important than retirement CHECK
3) deserving what you get CHECK

I don't get this culture...

[Brokemofo]

I heard an ad today for Commerce Bank HELOCs. The father is having a family meeting. He wants to get a HELOC at Commerce and is looking for ideas on what to use the money for. He wants to install a half-pipe in the backyard. His daughter suggests using it to consolidate their credit card debt. His son says to use it to pay college tuition.

What an irresponsible ad, especially given current market conditions. This guy is going to take out a loan just for the heck of it when he doesn't even have a reason or need for the money. No wonder this country is in the shape it is in.

I know what you mean, and somewhat agree, but just to be clear...

A heloc doesn't mean he is borrowing any money. Having one in place for family emergencies is a responsible thing to have.

[safari]

Using HELOC to consolidate credit card debt is not a bad idea. It will lower the interest rate, and will allow them to deduct interest payments from their income to lower their taxes. But installing a half-pipe when they already have credit card debt is insane.

[PauletteGoddard]

On the plus side, in the radio spot the father values his children's input on financial direction and decisions.

[disneysteve]

I know what you mean, and somewhat agree, but just to be clear...

A heloc doesn't mean he is borrowing any money. Having one in place for family emergencies is a responsible thing to have.

True, as is the fact that using a HELOC to pay off CC debt can be a good idea. But that definitely wasn't the point of this particular commercial. It was 'I'm going to borrow this money. What should we spend it on?'

[bjl584]

True, as is the fact that using a HELOC to pay off CC debt can be a good idea. But that definitely wasn't the point of this particular commercial. It was 'I'm going to borrow this money. What should we spend it on?'

Maybe I should take out an ad stating that if people are unsure as to what to do with their HELOC money, then they can give it to me.

[Brokemofo]

I can see the logic behind paying off credit cards with a home equity, but I would never do it. Why move a bunch of "unsecured" debt to a line or loan secured by the home you live in? If you can't make credit cards payments they won't take your home away from you.

[sweeps]

I still think the Chase "I want it all and I want it now" commercial is the most irresponsible commercial on the air.

[ThriftoRama]

My local bank has heloc ads about adding decks... I'm just surprised our smaller regional bank is still anxious to lend money considering what's happening in the housing market around here.

[Slug]

I still think the Chase "I want it all and I want it now" commercial is the most irresponsible commercial on the air.

But boy those big screens look fun...

[Brokemofo]

I still think the Chase "I want it all and I want it now" commercial is the most irresponsible commercial on the air.

Hah, you are so right. He should have bought one of the much larger TV's. That was completely irresponsible.

[sweeps]

Hah, you are so right. He should have bought one of the much larger TV's.

He would have, but he banks with Chase so he gets no interest and he pays a lot of fees.

[simpleyme]

theres an ad that runs everday and I not really sure what they are selling
but it says people who are renting and want to own should call today and all other can call tomarrow ,(what happens if I call today since the ad runs everyday ,will tomarrow ever come?)

I like the one for some sort of lump some payment where they scream "it's my money and I want it now!" well I do not really like the commercial ,at our house if some one owes me change back I will yell "its my money and I want it now"
and it is suprising how many times we manage to work that phrase into converations ;-) we are quite a silly bunch

[cptacek]

On the plus side, in the radio spot the father values his children's input on financial direction and decisions.

On the minus side, he is a flippin idiot.