web analytics

Dumb Things People Do, Volume III – Don’t Take Financial Advice From Your Local DJ!

November 30, 2010 · 23 comments

in Dumb Things People Do, Personal Finance

This installment is actually about dumb things poeple SAY.

I was taking my daughter to basketball practice and we were listening to the radio.  One of those advertisements were on that was read by the DJ, with their own little comments and observations inserted.

This advertisement was for some company that was going to get you out of your underwater home.  “So you owe more on your house than it is worth?  Then call Blah and Blah and they will fix your problem!”.    It was the same type of commercial you hear everyday, no big deal.

Then the DJ starts talking…

He and his cohort are chatting about how one of them owes more on their house that is 10 miles away from the water than you can actually buy a house for on the water now.  The DJ then advises that they should call Blah and Blah to get them out of their underwater mortgage and they should go buy a house on the water.  He then advised to his cohort that he will end up paying on the underwater mortgage for 30 or 40 years and STILL not have it paid off because of  what they owe compared to the true value of the house, so they should get out of it now.

I started screaming ‘What are you talking about???”.  With a mortgage, you owe a certain amount of money over a certain amount of time, and what your house is worth does not matter at all to the original agreement.   Why would you have to pay for 40 years and still owe money on your house??  I was so angry because people listening may actually be nodding their heads and agreeing with this fool, and then they will call Blah and Blah and look for debt forgiveness based on incorrect information.

The only good thing about this little bit of misinformation is it was a good teaching lesson for my daughter, as I explained in depth why the DJ was totally wrong and explained how mortgages worked.  After we talked about it, she said “Then why did the DJ tell everyone that they would still have to keep paying?”  I then said that he didn’t know what he was talking about and should not be saying such things on a public forum like the radio.  I bet that DJ thought he sounded really smart too, sadly enough.

I do think that a big part of the reason why our nation is in the economic crisis it is in is because because act on false, or zero information.  If people were better educated in Personal Finance, then I am sure we would all be much better off…

If you enjoyed this post, please leave a comment or subscribe to the RSS feed to have future articles delivered to your feed reader. Thanks for visiting!!!

{ 23 comments… read them below or add one }

Money Reasons November 30, 2010 at 7:22 am

Amazing, so this guy is telling everybody to be a “Strategic Defaulter”…

If everybody that owns money on their house become a Strategic Defaulter, the economy will go back into the dumps… what a truly stupid DJ!
Money Reasons recently posted..Getting Paid for Recycling Aluminum Cans Update

Reply

Kris November 30, 2010 at 1:49 pm

What a truly system too that allows all the strategic defaulting!

Reply

First Gen American November 30, 2010 at 7:23 am

I sure hope no one would listen to a DJ for financial advise. Would you take his instructions on how to fix your leaky plumbing too. I hope not.

Unfortunately, anyone can write or say anything in a public forum these days. Just because someone wrote it or said it, doesn’t mean it’s true, even us bloggers who think we know what we’re talking about.

There is so much bad information floating around it’s hard to find the truth sometimes.

Reply

Kris November 30, 2010 at 1:48 pm

The thing is, even though the info was inaccurate, the end result is the same. People will probably still call ‘blah and blah’ and say ‘help me, I am underwater’. Even though what motivated them to call is the fact they would have an infinite mortgage, they will still get the ‘help’.

Reply

Moneycone November 30, 2010 at 8:39 am

The concept of money is a hard thing to grasp for the average guy. I wish managing money was a mandatory course in college, no high school!
Moneycone recently posted..What Can 100-000-000-000 Buy You

Reply

Kris November 30, 2010 at 1:47 pm

No, middle school, and parents need to teach it also. (That will be part of my post for tomorrow!)

Reply

Nicole November 30, 2010 at 8:45 am

Our student newspaper has a “financial columnist” who doesn’t understand short-term vs. long-term and is essentially telling everybody that they’re stupid if they don’t day-trade. It drives me nuts. I wrote a letter to the editor, but it was not used.
Nicole recently posted..Cultural differences and laundry folding

Reply

Kris November 30, 2010 at 1:46 pm

Oh my gosh, I would go insane Nicole. Is there not an editor of this paper? Or is this the editor??

Reply

Nicole November 30, 2010 at 2:55 pm

The editor is actually a student in one of my classes. But he’s not very good at taking criticism or suggestions.

I did tell all my core classes it was bunk and explained some very basic money management stuff (they managed to totally derail class for 15 min a couple of weeks ago).
Nicole recently posted..Cultural differences and laundry folding

Reply

The Financial Blogger November 30, 2010 at 10:22 am

There a huge lack of education and information not only in US but also in my country (Canada). When persons like this DJ give advice about a subject they don’t know, it does not help for sure. That is why I try to teach my children curiosity. So they will search many different views before having an opinion or, in that matter, before knowing FACTS. One thing though, I am sure this guy received a lot of calls telling him he was wrong. There is always some people to put us back on track.
The Financial Blogger recently posted..From 18-403 to 124-514 In A Single Year!

Reply

Kris November 30, 2010 at 1:46 pm

FB – I did not hear any calls, but who knows. The way they were talking, they thought they were so smart!

Reply

The Biz of Life November 30, 2010 at 1:25 pm

Preying on fear and ignorance is a well-know and time-tested marketing strategy. Politicians have been using it since the beginning of time to get elected to office.
The Biz of Life recently posted..Markets in Everything- TSA 4th Amendment Undergarments

Reply

Kris November 30, 2010 at 1:45 pm

I am afraid you are right Biz. I just don’t know how people can willingly lead others astray. Although in this case, I the people were just ignorant and sharing inaccurate info.

Reply

The Biz of Life November 30, 2010 at 2:27 pm

Most people are honest to a fault. But there are always snakeoil salesmen with no conscious. They usually make promises that are too good to be true.
The Biz of Life recently posted..Markets in Everything- TSA 4th Amendment Undergarments

Reply

Lola November 30, 2010 at 1:28 pm

You’d like to think the economic downturn of the past couple of years would have sounded a loud wake up call to most people about the importance of taking care of your finances, but I guess we’ll still have to wait and see how awake folks are!

Reply

Kris November 30, 2010 at 1:43 pm

I am afraid that one thing people have learned is that there will always be someone there to bail them out!

Reply

Squirrelers November 30, 2010 at 1:48 pm

Remarkable how misinformed and/or irresponsible some can be. I’m glad that you used this experience as a teaching moment for your daughter. That way some good will come out of that clown’s actions, albeit indirectly.
Squirrelers recently posted..Thanksgiving Giveaway Contest Update- and Black Friday Recap

Reply

Crystal @ BFS November 30, 2010 at 2:47 pm

I’d have to write a letter to the station to ask for a retraction of that stupidity! *heavy sarcasm* Oh no, my house is worth less, now I’m going to have to make payments forever…idiot…

Reply

Evan November 30, 2010 at 3:52 pm

You get worked up too easily about stupid people (see: Toyota Commercial lol) you are going to give your self a heartattack! You understand why he was wrong, now your daughter understands…imagine trying to get all the correct information off the internet?
Evan recently posted..Is Your State a Socialist State

Reply

Kris November 30, 2010 at 10:08 pm

Oh, then you need to read my post scheduled for this Friday…

Reply

101 Centavos November 30, 2010 at 7:43 pm

Kris, this guy and others regrettably infest the airwaves to a remarkable degree. From Jim “What-a-tool” Cramer to Generic CNN Talking Head to this DJ guy. I suppose it is, as you say, due to the economic ignorance their audience, that they have an audience at all.
101 Centavos recently posted..Fall Garden Frost

Reply

Aloysa November 30, 2010 at 11:37 pm

What amazes me the most is that people who have no clue about the topic they are talking about give financial advice. The scary part is that someone might even follow this idiotic advice. I actually got mad while reading the part about this idiot. Aggrrr….
Aloysa recently posted..Why Women Lie About Shopping

Reply

Roshawn @ Watson Inc November 30, 2010 at 11:49 pm

Kris, you are right that this is annoying, and it certainly isn’t limited to personal finance either. There is a certain level of arrogance (or at least confidence) that must be perceived from a talking head anyway, so don’t read too much into how the DJ and his cohort came off on air.

Regardless, at the very least, you got a teachable moment with your daughter and one on your blog.
Roshawn @ Watson Inc recently posted..Thanksgiving- Kardashian Kard- Lottery Round Up and Uncommon Money News

Reply

Leave a Comment

CommentLuv badge

Previous post:

Next post: