That refi is exactly what I need!

The New York Times ran a series called “The Debt Trap.” In it, Brad Stone explained something that will affect those that are considering refinancing.

Do those offers to refinance or to take another credit card sound like they know just what you want? Well, that’s because they do. The people who are sending you these offers know important bits of your financial history from your credit applications, product registration cards, your consumer spending records, and of course, your deed and mortgage information. Also for sale is a profile with information about your marital status, your children, your education, your cable company, and your new car purchases. If you apply for a mortgage, Experian, Equifax and TransUnion can sell that information to rival lenders. It’s called data mining; it’s legal. This marketing tool is putting carefully worded temptation in the path of American consumers.

Sheesh. No wonder the right offer seems to come to your door at the right time. Except when the wrong one shows up.

Monday, I wrote that as interest rates drop, homeowners start jumping into refinancing. I cautioned that lowering your rate at the cost of adding years to your payments doesn’t always work in your favor. You need to calculate the two or three or five years of payments to be sure you are ahead. Easy mistake. Lots of people make it.
What is insidious about the marketing of credit this way is that it makes it easy to target those who are already drowning in debt. If you are in an adjustable rate product, you are a target. If you carry credit card debt, you are a target. If you apply for a new mortgage, you are a target. The more you need the cash, the easier it is to resist the urge to do the math. Easy mistake. Lots of people make it. I’d like fewer to make it this time around.

I get about a half dozen credit card offers a week. How many do you get?

I am also swamped with “privacy notices” which say that my information will be “shared with partners” unless I opt out. Do you opt out?

So far, I’ve gotten only a couple of refi requests. They don't get a second glance, so I haven't counted.

What’s in your mailbox?