Credit Card Debt Explained With a Glass of Water

http://www.totaldebtrelief.net uses a pitcher and a glass of water demonstrate the effects of minimum credit card payments. This video uses a simple analogy to describe how the average American is throwing away their money to the credit card companies. Visit totaldebtrelief.net for more information on credit card debt relief.

Category:

Education

Tags:

• credit card debt
• debt relief
• credit card debt relief
• credit cards
• finance
• personal finance
• debt management
• money
• money management
• budgeting

[agun17]

((10000-(142x12))x(17%))+(1000­0-(142x12))=Debt after 1 year=9706, not 9995.

((9706-(142x12))x(17%))+(9706-­(142x12))=Debt after 2 years=9362, not 9990.

((9362-(142x12))x(17%))+(9362-­(142x12))=Debt after 3 years=8960

It's an exponential funtion. The video used a linear function, thus it's calculations are invalid.



[TWSceptic]

This video demonstrates why CC debt is typical for stupid people.

[gondalsb]

The owner of Citibank once said

"the best way to manage a credit card is not having it"

I agree

[anshulkamboj]

thats right

i pay off my credit card, make pyaments up to 1000 up to month

[natenorrish]

Credit was never thought up in order to screw people over... it's the people who are screwing themselves over by not earning enough for the debt they have! If you use credit properly, it's extremely useful.. and the idea is nothing is for free.. the banks have to make some money somewhere along the line... hence the interest! If you can't afford the interest, don't use credit... be patient and save instead.

[orionstarman]

Several years ago I had about $15,000 in CC debt. One day I got in the mail an offer for a new CC with the enticement of 0% interest to rollover any unpaid balance on other CCs. I jumped at it. After a year the interest rate reset up to 9% but low and behold I got another 0% offer from another CC company and jumped on that one. Same deal after 1 year it was about to reset to 9% and you guessed it I got another 0% offer. It took about 3 years but I paid it all off with almost no interest.

[marcowebreg]

@mycesi Credit card debt has been deceptively sold as a clever tool for debt enslavement. The CC companies favorite customers are those that can't afford to make regular monthly payments and will get wrapped up on fees forever... legal fees, late fees, missed payment fees, ridiculous interest rates that COMPOUND monthly. Albert Einstein allegedly once declared compound interest to be THE most powerful force in the universe... think that one over. Stop paying all of it. They are crooks

[agun17]

@TheMEK3 You are pathetic.

[TheMEK3]

@agun17 This is obviously way above your comprehension. You do you and I'll do me. Fair enough Sitting Bull?

[agun17]

@TheMEK3

*facepalm* Not all exponential functions are in base e. Ever heard of exponential growth? No, of course you haven't or you wouldn't have said such ludicrous statement.

[TheMEK3]

@agun17 Okay. But are you aware that if this was an exponential function then we would be working with "e"? There is no "e". Again, this is simple algebra. When you have a credit card and you do charge $10,000 you are suppose to pay if off before the next billing cycle in order to avoid any interest charges. In the example, we only paid the minimum balance of $142 which means that we didn't pay it off in the full month. Maybe you should understand the difference between the two.