lies

How to Protect Yourself From Predatory Lending

Dan Rafter — Tue, 07 Mar 2017 10:31:34 +0000

Predatory lending has long been a problem for consumers. There is no exact definition of a predatory lender, but in general, these lenders either try to overcharge consumers for loans, or talk them into riskier loans that come with higher interest rates. Predatory lenders have one goal: They want to make as much money as possible on their loans, regardless of whether the loan product actually makes financial sense for the consumers.

How, exactly, do people fall for this? It's actually not surprising when you understand the degree of manipulation predatory lenders will use. By targeting mainly elderly, low-income, or simply uninformed victims, these financial predators bank on convincing folks with poor or no credit that they have no other options for obtaining financing.

If you don't fit the above criteria, don't think you're completely off their radar, either. Should you ever lose your job, need cash for an emergency, or suddenly find yourself facing steep medical bills, you just might be the next target of a predatory lender.

Worried that a predatory lender might have targeted you? Here are the warning signs.

The Lender Wants You to Sign Now

Honest lenders will never pressure you to sign loan documents before you are comfortable. Legitimate lenders give you time to study the paperwork and research the fees and rates associated with the loan.

Predatory lenders want you to sign paperwork as quickly as possible. That way, they can stick you with their high-cost loans before you have the chance to research lower-cost alternatives. Never do business with a lender who pressures you to act quickly. The odds are high that such a lender is a predator.

The Interest Rate Suddenly Rises

Predatory lenders like to entice new customers by advertising below-market interest rates on their websites or print ads. But when you actually call these lenders, you're told that you don't qualify for these low rates. Once these lenders have you on the phone, they'll try to convince you to sign up for a loan with a far higher rate.

Don't fall for this trick. Companies that advertise interest rates that are far lower than their competitors are usually not trustworthy. The odds are high that these are predatory lenders trying to trick gullible borrowers.

They Tell You Not to Worry About Your Credit Score

Legitimate lenders rely heavily on your FICO credit score to determine if you should qualify for a loan and at what interest rate. This score tells lenders how well you've paid your bills in the past.

Beware of lenders who say that your credit score doesn't matter or that they can approve you for a loan no matter how low your score is. Lenders who make these promises will charge you sky-high interest rates because they know that you're desperate for a loan. You're much better off working to improve your credit score than taking out a costly high-interest-rate loan. Pay all your bills on time and pay down as much of your credit card debt as possible. Slowly, but steadily, your credit score will start to rise, and you can avoid the high rates of predatory lenders. (See also: 5 Ways to Pay Off High Interest Credit Card Debt)

The Lender Asks You to Lie

Making false claims about your income or debt on a loan application is a crime, and you could face significant fines if you do. Predatory lenders, though, might encourage you to inflate your income or provide other false information.

Ignore this temptation. No legitimate lender will ask you to lie on an application. Instead, lenders will take extra steps to make sure that the information you do provide on an application is true. For instance, they'll ask you to provide copies of your most recent paycheck stubs, bank account statements, and tax returns to verify your income.

Your Lender Tries to Talk You Into a Riskier Loan

Be careful if your lender continues to push a loan that sounds risky. Maybe you want to apply for a fixed-rate loan with a term of 15 or 30 years. If your lender pressures you to instead apply for an interest-only loan with a balloon payment — or something equally as complicated or risky — walk away. Legitimate lenders will never try to talk you into a loan that you don't want.

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Flashback Friday: 38 Money Misconceptions We Need to Stop Believing

Chrissa Hardy — Fri, 28 Oct 2016 10:00:12 +0000

Making assumptions and spreading rumors leads to a universe packed with myths and lies. And while some might seem obviously untrue, a lot of people might still believe them! Let's do away with all that malarkey, shall we? It's time to seek the truth when it comes to cash. Here are 38 money misconceptions we need to stop believing.

4 Common Money Misconceptions About Women — It's 2016, and sadly, women are still commonly stereotyped as sheltered homemakers and impulse shoppers. And personally, I know plenty of men who love to shop and women who are the breadwinners of their families, so I'm sure that you do, too.

The 10 Biggest Myths About Investing — When you're an investing newbie, the whole process can seem scary. But just because you take a financial risk doesn't mean you'll lose all your money and end up with nothing. Just a little time and basic investment knowledge will ease all those concerns.

6 Money Misconceptions About Millennials — Millennials might seem like a generation too preoccupied with taking selfies to learn how to manage their money, but that assumption is completely wrong. Millennials are hustlers, social media mavens, and are ruling the gig economy. Do not underestimate them.

6 Harmful Money Beliefs That Are Keeping You Poor — Yep, your outdated money views could be holding you back from the financial freedom you seek. Credit card debt is not just "part of life," and you can find a way to save money earning any income. Stop settling for mediocre when your finances can be stellar.

6 Emergency Fund Myths You Should Stop Believing — Building an emergency fund seems impossible and unnecessary, especially for people living paycheck-to-paycheck… until it could save your life. That's why it's called an "emergency" fund. You hopefully won't need it for a while, but when you do, you'll be so grateful you worked so hard to build it.

6 Money Myths About Stay-At-Home Moms — Oh you think stay-at-home moms have it made in the shade? You assume they sleep in, just casually run errands, and hang on the couch all afternoon? You are way off. SAH moms of today are finding brilliant ways to multitask and make money while also raising the kids. They are handling more responsibility and taking on more work than most. Let's stop believing the myths and give them the proper respect they deserve.

This article is from Chrissa Hardy of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Lies That Even Honest People Tell

Paul Michael — Tue, 16 Dec 2014 12:00:11 +0000

Thomas Jefferson once said, "honesty is the first chapter in the book of wisdom." But the second chapter in that book might be be: "except for these little white lies." (See also: How to Tell If Someone Is Lying)

Being honest about the things that really matter is paramount. But when it comes to the smaller things in life, honest people can still call themselves honest despite the tiny untruths they tell. Whether it's lies of omission, or lies of deception, here are 10 lies that even the most honest people tell. How many of them do you agree with?

1. Actually, I'm Busy That Night

Doing what, you have no idea. But you know you don't want to go to that shindig that someone from work is organizing. Whether you're busy washing your hair, organizing your sock drawer, or binge watching Law & Order, you're not really busy. But you are. Kind of. Hey, we all do it.

2. I Had No Idea How Fast I Was Going, Officer

You did though, didn't you? When you're pulled over for speeding, you're going to be asked one of two pretty standard questions. One is "do you know why I pulled you over today?" and the other is "do you have any idea how fast you were going?" Even honest people will say "no" to that one, because the alternative is to say "yes, I had my foot down and knew I was breaking the law but didn't think I'd get caught," or something like that.

3. Lies About Age, Weight, and Even Height

They say you should never ask a woman her age. It's considered rude, although asking a man his age doesn't seem to be breaking any rules of etiquette. But to be frank, it doesn't really matter. Most women are going to fudge the age and weight question at some point, even if it's only by a few pounds or a couple of years. There's no harm in it either. Men also seem to be sensitive to the issue of weight, but even more so when it comes to their height. I say I'm 6 feet, and I'm very honest. I'm actually 5 feet 11 and ¾ inches Hey, my math teacher taught me to round up.

4. The Number of Sexual Partners

There seems to be two schools of thought on this, separated by gender. Men will generally claim to have had more partners than they really have, because society expects it. It's considered manly, apparently (this is not my opinion by the way). Women will also lie, but because society seems to be stuck in the middle ages, they will claim to have had fewer partners. At the end of the day, as long as you're honest about your sexual health with your partner, does it matter how many people you've done the deed with?

5. "Weaknesses" During Job Interviews

It's not only expected to tell white lies here, it would probably shock the interviewer if you told the complete truth. "Yes, I do have one weakness… I'm filthy. You should see my house; it's a wreck! I usually just throw all my crap into the desk drawers at the end of the day, even leftover food." Honesty here will not be your friend. At the same time, don't do the usual "I think I'm just a workaholic" routine. That's even worse.

6. Lies About a Person's Appearance

This is probably the biggest lie on the list that we all tell, and rightly so. Answering "how do I look?" with "well, not good; fat in the face, sweaty, and that shirt looks awful on you" may be honest, but it's not going to make you very popular. You have to tread lightly here. Don't tell someone they look insanely fabulously good if they look like they just got out of bed, but don't go past the point of rudeness.

7. That Totally Makes Sense

Someone just told you something a little confusing. They've told you a few times now, and it's starting to get beyond dull. You can ask them to explain the situation again, or, you can say you get it and move on. There are other reasons to pull this one out of the hat. When your grouchy in-laws start banging on about something very political and divisive, you can either decide to have a verbal jousting match, or say "I get it" and change the subject. Whatever it is, sometimes people just want to admit that something makes sense, rather than deal with the consequences of honesty.

8. Yeah, I Worked Out This Morning

Well, I struggled to crawl out of bed and into the shower, does that count? Even those of us who hit the gym on a regular basis will have times when it's just not worth the effort. Of course, we don't always want to admit that, so we bend the truth a bit. Ah, we're only fooling ourselves anyway, so there's no harm in it.

9. I Love It! It's Just What I Always Wanted!

"I'm going to save this wonderful t-shirt for a really special occasion… like fixing the car." Receiving gifts gets harder once you hit puberty. Suddenly, people care a lot more about the gift they got you. And you don't have the "I'm just a kid" excuse, so you can't say it sucks. Instead, even the most honest person will say a rotten gift is heaven sent. Later on, that gift will find a new home, either in someone else's gift basket, or at the local thrift store.

10. I Had a Great Time

Most of the time, it's true. Sometimes, it's just a lie designed to not hurt someone's feelings. And that is okay, as long as it doesn't become a habit. If you say you had a great time at a gaudy nightclub, and your significant other keeps taking you back there, it's your own fault. But if it's a one-off, there's no harm in admitting you had a killer time, when you actually spent most of the day killing time.

What lie isn't on the list that you, as an honest person, tell often? Or even just occasionally? Tell us below (and no lying!).

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Times Most People Are Faking It

Paul Michael — Thu, 11 Dec 2014 12:00:07 +0000

Before we go any further: This will not be an article about faking it in the bedroom.

No, this is about those times when people are faking a reaction, opinion, or some other kind of sentiment — "faking it" to save face, save someone's feelings, or something a little more sinister. (See also: 5 Signs Someone's Being a Fake)

So take a look and then keep your eyes sharp next time you find yourself in one of these situations.

1. Opening Presents

You would have to be the luckiest person on Earth to get everything you want every single time. And yet, we all react in that exact way. I tell my kids that it's okay to tell little white lies, and when it comes to opening presents, that's what they will do (most of the time). How many times have you received a real stinker of a gift, but faked a smile, laughed, or just squealed with joy. You thank everyone, and when they leave, you figure out if it's something you can regift, return, sell, or put in the pile marked "thrift store donations." If you're doing it, everyone's doing it. C'est La Vie.

2. Listening to Vacation Stories

"And then, we went on this beautiful hike through the foothills of the Rocky Mountains. Oh, the air, it was so fresh you could have bottled it and sold it on eBay. I saw a bird… what was it Harold? Oh, it's on the tip of my tongue..." It's polite to listen to the stories of people who have just returned from vacation. But after the first few minutes, most people go into autopilot mode, smiling and nodding at the right times, whilst really trying to figure out what to make for dinner.

3. Job Interviews

You are not yourself in a job interview. You are, for the most part, the best possible version of yourself (or at least the most professional). You smile more than usual. You sit upright and alert. You never swear. You are always inquisitive and never give a negative reaction. You make Mr. Rogers look like Mr. T. Fortunately, the interviewer is faking it, too. You are both being versions of yourselves that are fake; but this is not only acceptable, it's expected. Ironically, most people can get a feel for the other person within the first few seconds, so all the fakery afterwards is just a wasted effort.

4. "Does This Make Me Look Fat?"

It may be a variation of that. Like "do you like my new haircut?" or "how about these new shows?" Whether you're a man or a woman, most of the time you will be faking it. No one, ever, wants to hear that the new dress they just bought makes them look 20 pounds heavier. No one wants to know their haircut is a disaster, or their shiny new shoes are actually a nightmare. So, you fake it. We all fake it. "You look fabulous."

5. Meeting the Parents (or Boyfriend/Girlfriend)

Everyone is faking it when they first meet potential in-laws or their friend's new partner. "Do you like him?" will rarely, if ever, be met with "actually, I can't stand him. He sucks. And his breath stinks." No, we all fake it for a while. Emphasis on "a while." If we see that the person is not good for our friend or relative, and things are getting serious, we'll intervene. But that first meeting, it's all niceness.

6. Dinner at a Friend's House

It doesn't have to be a friend. It could be a relative, the boss, or anyone else who invited you over for a bite. Not everyone is faking it of course; there are times when you will genuinely love the food being served. But most of the time, people act like they're being served nectar of the gods when it is, in fact, not all that good. It's the polite thing to do. When someone asks "how's dinner?" who is really going to say "it's ok, but it's totally lacking salt and the meat is dry." Yeah. Just fake it.

7. At the Doctor's

File this one under "dangerous but true." Doctor's have said time and again that we all need to tell them the 100%, no BS, lay-it-on-the-line truth. Do we? No. Most of us vastly underplay how much bad food we eat, exaggerate how much exercise we do, and generally give the doctor a fake version of ourselves. This, of course, it just a really bad idea. If the doctor doesn't have a complete picture, he or she cannot treat you accurately. And you know, most of the time they can smell your fakery a mile away anyway. Just be honest about how much you drink, eat, smoke, and exercise.

8. The First Date

This is very similar to a job interview. If you think about it, you're both interviewing for the open position of girlfriend or boyfriend. You are never going to be yourself, the real, unadulterated you, on the first date. It's a time when farting and belching is no longer allowed. Your table manners suddenly get a massive improvement. You're laughing at awful jokes, and pretending that the dessert he or she picked out was just divine. Fake. But, this is also a common part of courtship, and we all know that this will pass. Hopefully, not too soon though.

When do you fake it? Please spill in comments!

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Signs Someone's Being Fake

Tara Struyk — Mon, 01 Dec 2014 13:00:08 +0000

We all do it to some extent: Present a carefully crafted persona that highlights our best qualities and minimizes our flaws. It's human nature. In fact, the vast majority of us tell at least one fib each day. It's not always a bad thing; our ability to obscure the truth is part of the reason human beings have such highly developed brains. (See also: 8 Giveaways That People Were Just Talking About You)

Even so, this behavior can go too far, which is why you've probably met at least a few people in your life that you referred to as "fake." People who were inconsistent. People who stretched the truth. People who refused to own up to their bad behavior. In short, people you probably struggled to trust before. So how can you spot someone who's being fake before being duped? Here are five signs that the person you're dealing with is a phony.

1. They Use a Fake Smile

Some amount of fake smiling is normal. You probably crack a fake smile when someone pulls out a camera, or when you feel social pressure to laugh at a joke. But when you catch someone pulling a fake smile too often, beware.

How can you tell the difference?

According to extensive research by Dr. Paul Ekman, it's all in the eyes. In a genuine smile, tiny wrinkles appear at the corners of the eyes, and the skin between the eyebrows and upper eyelids will move down. While much of a smile can be produced voluntarily, some of the muscles used in a real smile can't be contracted at will. Can you spot a fake smile?

2. They Can't Get Their Story Straight (or Don't Believe It Themselves)

When people are telling the truth, it always comes out the same. Because it really happened. When people are bending the truth — or making things up — it's harder to keep that story straight. That's why if you suspect someone is being fake, you should listen for inconsistencies in their stories. You can look for inconsistencies in what they say and what happens on their face as well. Believe it or not, when a person is lying, she might be saying one thing is the truth, but betraying herself with an ever-so-slight shake of the head. (See also How to Tell If Someone Is Lying — Besides the Long Nose.)

3. Their Microexpressions Tell a Different Tale

Just like tiny gestures, microexpressions, or the subtle, less-noticeable expressions that tend to pass quickly across a person's face, can tell you a whole lot about that person's sincerity. These expressions tend to last less than a 25th of a second, and tend to represent a concealed emotion. Watch carefully for what the person's face is telling you — and whether those expressions match the person's words.

4. Their Body Language Shows Discomfort

We don't always pick up on a person's body language, but it can be a huge red flag that that person is being insincere. Does the person turn his or her body away from you while speaking to you? That can be a sign of discomfort. Does the person tend to fidget, blink rapidly, and shrug his or her shoulders at times? Those can be signs that a person is being less than honest. A liar might also unconsciously place items between you and him or herself while talking. These signs don't always mean a person is being fake, but when you see this behavior often, or at times when you believe a person's story to be suspect, beware.

5. Your Gut Says So

How can you spot someone who's being fake? The simplest answer may be easier and more effective than all of the above: trust your instincts. According to research, our initial impressions of a person's motives tend to more accurate than what we come up with when we think about it too much. Maybe our sense of empathy kicks in. Or we feel we need to give the person the benefit of the doubt. Or be polite. Or ensure that we're liked. And, in many cases, those messages can speak louder than that gut feeling telling us that a certain person just isn't sincere. If a person makes you uneasy and you initially question their integrity, listen to your instincts. Then, look for other clues that you're dealing with a phony. Chances are, you'll find them.

Know of any other sure fire ways to spot a phony? Please share in comments!

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This article is from Tara Struyk of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Giveaways That People Were Just Talking About You

Linsey Knerl — Sat, 13 Sep 2014 15:00:07 +0000

Call me paranoid, but I know when people have been talking about me. Even though people are known to lie all the time (especially little "white" lies), human nature isn't very comfortable with telling untruths. Talking about someone behind their back, and then having to see them face-to-face, often feels like a deception. This is why it's often very telling that you were the subject of their conversations. Most people, in fact, have a "tell." (See also: How to Tell If Someone is Lying)

Here are a few of them, along with what you should do when they've been made.

1. Uncomfortable Silence

If your co-worker is a non-stop talker in most situations, an uncharacteristic lack of speaking when you enter the room may mean she was talking about you. A lack of communication from a whole room is almost always a dead giveaway. One way to break up the awkwardness and possibly get more information is to joke about silence. A simple "it's always quietest when I enter a room" comment will at least put the responsibility to respond back on the shoulders of your co-workers.

2. Overacting

On the other end of the spectrum is this horrible cover-up for gossip. Nervous laughter, animated movements, and loud talking is one way people try to "go about their business" when almost getting busted in a good round of idle chatter. A simple, "It's so lovely to see you enjoying yourself" can feel like hot coals on the head of the busybody. And it delivers the point.

3. Failure to Delete

While many instances of talking behind someone's back happen IRL (in real life), email and social media is full of backbiting and petty slander. The horror of discovering that a chain of email gossip was forwarded on — intentionally or not — to the subject of the conversation has happened in many offices and has even landed the chatterers in the unemployment line. If you suspect that someone is talking about you via email or social media, you often have to look no further than the bottom of a long, long thread of replies.

5. The Company They Keep

If someone you know or respect is surrounded by three or four people who are known to dislike you, the chances they are giving you a glowing review aren't good. That will also say something about your acquaintance's choice in friends (and whether you should reconsider your relationship).

6. Rapid Scatter

Did everyone suddenly have somewhere to go when you came upon them? Not a good sign. While this is mostly limited to horribly formulaic sitcoms, it can still happen in the real world. When the room empties out as soon as you enter, it's a good sign that you were the topic of interest moments earlier (or you really need a shower).

7. Sickening Sweetness

Many two-faced people wear both sides of their faces very, very well. When they are mean, they are brutal; when they are nice, they are disturbingly so. If you happen upon someone who offers to pour your coffee, asks about your day, and goes on and on about your blouse or hair — and you're not particularly close — something is up. They could be going for your job at work, or they may have just wrapped up a session about your shortcomings. In any case, they should not be trusted.

8. Gossip About Others

Blabbermouths rarely stop blabbering; people who love to talk about others usually show no discrimination, either. If you are friends with someone who can't stop their busy-body behavior in front of you, it's not likely they shut it off when you're not around. Your best bet is to never trust a gossip, as they almost always talk about those closest to them, and the next time could be about you!

Whether you choose to confront a gossip is completely up to you. It may be good to air out any concerns you have, especially where your personal life is concerned. When it comes to the workplace, however, things are always a bit more tricky. Confronting a boss or a boss's favorite could come back to bite you. Unless the talking behind your back is truly scandalous (resulting in damages), you may be better off to ignore it and write the person off as someone to never, ever put your trust in again.

How do you know when someone is gossiping about you? Dish in comments!

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This article is from Linsey Knerl of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Tell If Someone Is Lying (Other Than the Long Nose)

Nicholas Pell — Wed, 05 Feb 2014 11:36:07 +0000

When we interact as humans, there's an implicit assumption that the other person is dealing with you in good faith. This is why liars are such insidious creatures; they prey upon the natural trust that must exist between people in a civilized society. However, you don't have to be at the mercy of the liar. There are a number of ways you can tell if someone is lying to you. If your natural suspicions are aroused, just look for these signs, and you'll become a human lie detector… or close enough. (See also: 16 Ways to Improve Your Body Language)

1. Deviation From the Norm

One of the most immediate signs that you're being lied to is that the person speaks or acts in a way that's different from how they normally do. Establish a baseline for everyone. See what they act and talk like naturally. Deviations from this norm might not mean lying, but then again, they might. Asking simple questions that you already know the answer to allows you to get some kind of comparison there in the moment. (See also: Why Cultivating Relationships Is Good for You)

2. Immediate Answers

Try this out: ask a person what they had for breakfast last Tuesday. Chances are better than good that they have no idea off the top of their head and that they have to think about it a bit before they can answer you. Compare with the liar who knows exactly what he had for breakfast last Tuesday, along with a bunch of other details that an honest person probably wouldn't volunteer.

3. No Personal Pronouns

From the "strange, but true" files: people who are lying tend to use personal pronouns less than people who are telling the truth. Rather than saying "I" or "me," liars refer to themselves in the third person or cut off sentences to omit themselves as the subject.

4. Body Language Doesn't Match Verbal Language

Here's one you've probably never thought of. Liars often nod "yes" while saying "no" and vice versa. It's one of the most common tells that people aren't aware of. Note that you're looking for a pattern of behavior here. A sharp head nod with a "no" doesn't mean anything, but if the person keeps doing it, they might be lying to you.

5. More Stories Than Daytime TV

One thing that a liar rarely ever does is answer "I don't know" or "I'm not sure." Instead, they've got an answer for anything that you might throw at them. Not knowing the answer to a question is normal and natural. Knowing the answer to just about everything is not. (See also: How to Always Have Something Interesting to Say)

6. Covering the Face

Your face can give away a lie. This is something that everyone, especially liars, knows instinctively. If a person keeps covering their eyes or mouth when they're talking to you, they might be trying to hide something — namely, the truth.

7. Fidgeting...

OK, so maybe you just asked a question that's uncomfortable on its own. However, fidgeting and physically fussing around is a sign that a person might be being less than truthful with you. Things like playing around with facial hair, adjusting clothes, or cleaning glasses can be clear signs that a person isn't telling you the truth if they're done in excess. (See also: Body Language Mistakes That Sabotage Interviews)

8. ...Or Lack Thereof

Here's something we bet that you never knew that liars did: they make fewer gestures than other people. In fact, if a person is holding their hands still, it might be because they're affecting a character, rather than just being themselves. Again, it's important to get a baseline to see what normal behavior is, then compare what you're seeing to that.

9. Proclamations of Honesty

One who exclaims "honestly!" once or twice isn't really that big of a concern. One who is constantly asserting their honesty and trying to convince you that they're being honest might be being less than truthful with you. Look for statements like "well, to be honest" or "to tell the truth." "I swear on my mother's grave" or "with God as my witness" are other ones that are worth watching out for.

10. No "Smoking Guns"

Remember that one of these things, even in a strong way, doesn't mean that the person is necessarily lying to you. What you want to look for are overall patterns of dishonesty and dishonest speech. That's what's going to let you know if you're being misled or the person is just nervous, or has a quirky conversation style. Happy lie hunting!

Anything I've missed? How do you spot liars? No fibbing!

This article is from Nicholas Pell of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Exposed: Magazine subscription rates complete BS.

Paul Michael — Sun, 02 Dec 2007 06:32:02 +0000

Have you ever wondered about the validity of those "special offer magazine subscriptions" you get in your mailbox? As someone who gets most of his magazines for free through various free subscription sites, I never really gave it much thought. But then I read an article by Chris Anderson, of Wired magazine, and he exposes some ugly truths about subscriptions.

Longtail.com recently published an article by Mr. Anderson that highlights the trcikery involved in magazine subscriptions. You can read the complete article here but this excerpt gives you the meat of the argument. All you need to do is take out any of the "special offers" you receive in your mailbox (I get them daily) and cross-reference them with the following list of facts.

there is no such thing as a "special courtesy rate"
"guaranteed savings" is a meaningless phrase (and indeed you can often find magazine subscriptions cheaper through an agent--check eBay--or a credit card loyalty program)
it makes no difference if you reply by the "reply by" date
"statement of benefits itemization" are just empty words meant to invoke an invoice
all those "free" or "included" things are just the regular content that's in the mag for everyone.

The basic marketing logic behind all of this is based on consumer gullibility. If you tell them that you must reply by a certain date, then guess what, they will. If you tell them they're getting a special courtesy rate, they'll feel special.

This goes way beyond magazine subs, too. One tactic I'm increasingly sick of is the seasonal sale. In Colorado, we have a store called American Furniture Warehouse. And they have a sale every day of the year. If it's July 4th, it's the Independence Day sale. If it's Labor Day weekend, the same. But when there's no particular holiday, they make one up. "The boss is on vacation" or "Falling prices in fall" or any other trite link is used, and it works. The store is always chock full of consumers looking for a bargain. And these stores can get away with it because as long as something in the store is genuinely on sale, they're in the clear. Most of the items in the sale are the same price the whole year round.

And this gets us back to magazines. Those subscription rates you can get by just calling up a contact number in any magazine and asking for the subscription department. You don't need a savings card or an invitation, magazines are happy to give you a stellar rate because it increases their readership figures, which means higher advertising revenues. Cha-ching.

So, next time you think you're getting snowed by a magazine subscription offer, just call and ask for a better rate. You'll most likely get it.

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: