FPU Week 6: Buyer Beware

Wanna take a guess? C'mon, what do ya think?

How many credit cards are in there?

We continue to be amazed at not only the number of credit cards our class members had, but also their willingness to put them through the shredder. These guys are awesome!

If you haven't taken FPU, then you might not understand. Shredding your credit cards in not mandatory. We're not going to make you do anything you're not comfortable with (but we will strongly suggest!). In fact, you shouldn't be shredding them before completing Baby Step 1 - the starter emergency fund. It's not required to shred your cards, but after watching the week 5 lesson, it's pretty tough to hang on to them knowing the tactics the credit card companies use and the sub-industry they support... that and the fact that you really don't need them when you have money and have a plan!

The Buyer Beware lesson, week 6, is a real wake-up call. We are the most marketed-to culture in the world. We have so many advertisements flashed in front of us per day that we don't even realize most of them are there. Product placements are everywhere. None of it is left to chance and it is all done for a reason - it works!

The way a store is laid out, right down to the iced beverages by the counter. The catchy jingle and the way it is repeated, day after day, year after year. The offers of pre-approved credit, 0% APR and no payments until 2012! It's all out there, in a certain way, at a certain time, and in a certain color, because statistically enough people will react and the company will make money off of it. These are multi-billion dollar companies spending millions upon millions on research and advertising, and you think you just got a good deal on that new car?

The buyer absolutely must be aware.

As someone who spent many years of his professional career in sales, Dave is able to give some amazing insights into everything going into the other side of the deal. This class and week 5 are both good food-for-thought classes. For the most part, the students in the class are still busy trying to make their budget work and start paying down their debt.

And we've also had some great discussion in the small groups around budgets and the nuts and bolts of making this stuff work. I can tell that some of these folks are really getting in gear on this stuff. We've also seen some previously truculent folks start to let their guard down a bit and listen. It's a process, and I know it's not easy, but I really have high hopes for this class.

What advertising annoys you the most?

BTW- I may tell you how many cards are in the jar, but not before I see a few guesses! For reference - It's a 1/2 gallon jar, with a tad bit of airspace.


autumnesf said...

Just a heads up in case people don't know. Cutting up the cards is great, BUT don't cancel those accounts until they are paid off!!

Lots of companies jack up the interest rate immediately when you close the account before it is paid off. And its in the small print in one way or another so there is nothing you can do about it.

ya ya's mom said...

i'm guessing 50 cards in the jar

Mr. (not) the Jet Set said...

Thanks for the guess, ya ya's mom. You're way off though...

anyone else?

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