Taking money advice from a loan servicer is sort of like taking health advice from a tobacco company.
The advice might be valid, but theres probably a better source out there for you.
Namely, one that doesnt profit from your bad habits.
If thats not bad enough, they reportedlyalso misled borrowers with questionable adviceon their relief options.
Guilty or not, this response is kind of a slap in the face to borrowers.
The Navient fiasco highlights the problem with a popular business trend:big idea marketing.
Youve encountered big idea marketing in some form.
Youre not just buying a phone,youre a trailblazing rebel.
Youre not just buying shoes,youre improving lives.
Big idea marketing isnt always a bad thing, though.
Helping someone in need is a big idea, and its a good idea!
Youre not in debt and accruing massive interest,youre navigating the path to financial success!
However, strategically using credit for regular purchases can help Millennials keep track of their overall budget.
J.Moneys response to this pitchsummed up my own thoughts pretty well:
COME ON!!!!
If people are worried about going into debt AND spending within their means, then leave them alone already!
Theyre being smarter than most other adults out there!
Credit card companies actually profit when youdontuse cards responsibly.
They profit when you fail, financially speaking.
And thats the problem right there: the advice is not completely wrong.
These companies arent exactly misinforming consumers, theyre manipulating them by baiting them with a little bit of truth.
The line gets blurry.
For one, you could think like a journalist.
A journalist has to consider the source and avoid those pesky conflicts of interest.
How does the source get paid?
Is it a podcaster who gets paid via ads?
Good financial advice doesnt exactly contradict the way she profits (in fact, it supports her success).
it’s possible for you to also research the companys reputation.
It should go without saying that you should verify any advice, too.
True CFPs have to take a fiduciary oath to give advice thats actually in your best interest.
Personal finance isnt nearly as complicated as people think.
The drawback is that this advice is so accessible that you have to be careful aboutwhereyou access it.
