00:00Hey guys, welcome to The Rachel Cruz Show.
00:03So today I'm going to be reacting to a video called
00:05Why Credit Cards Are a Scam
00:08from the comedy YouTube channel Cracked.
00:12And it's part of their series called Honest Ads.
00:15And apparently it's supposed to be so funny.
00:17I've never seen it, so this is my first time viewing it.
00:20And I can't wait because I hear it's a little sarcastic,
00:23which I just appreciate that.
00:24So, okay, here we go.
00:30Want to have money without having money?
00:33Want to go to stores and get things because you want them?
00:37Then use my Horton card.
00:38It's reliable, it's no fuss,
00:41it's a fancy plastic IOU card
00:43that will have you swimming in debt
00:45for the rest of your and your offspring's life.
00:48Oh my gosh, okay, pause for a second.
00:51Okay, fascinating.
00:53You'll be swimming in debt for the rest of you
00:55and your offspring's life.
00:57It's very fascinating that they said that
00:58because I think so much of understanding money,
01:03we don't realize how much we are impacting our kids.
01:05And when your kids see something that is so normal,
01:07they're going to jump in and think,
01:09yeah, that's normal, mom and dad did that.
01:11So I'm going to do that.
01:12Like it's a mirrored effect.
01:14Until someone says, no, no, no, no, no.
01:16And for the rest of your life,
01:17because they are dang good at trapping you
01:20and just kind of keeping you in the cycle.
01:22It's fascinating.
01:23Okay, okay, let's keep going.
01:25And to make sure you feel comfortable
01:27with spending money you don't have,
01:29we'll use this comedian
01:30to make you feel like it's no big thing.
01:33I'm from that TV show that's doing reasonably well.
01:35So I've got a sense of humor
01:36about spending money on stuff I don't need.
01:39Just charge my card, buddy.
01:40Okay, pause.
01:41I love that they're making fun of the fact
01:43that they use celebrities
01:43because we see that all the freaking time.
01:46And we're like, oh, well, if they're on TV,
01:48they must be really great with their money.
01:50So I'm going to listen to all their advice
01:52for getting it.
01:52These credit card companies are paying them
01:54so much money to do these ads.
01:56But we just think that they're trying to help us out.
01:58So that's really funny.
01:59Whatever.
02:00It doesn't really matter to me
02:01because I'm mostly excited to get cash back.
02:04Relatable.
02:05I know.
02:05Why use gross paper
02:07covered with pictures of dead guys
02:09when you can use my square piece
02:11of dinosaur carcass with numbers on it?
02:14In fact, nowadays,
02:15you have to have a square of recycled soda bottle
02:18because how else would you even be able
02:20to purchase your online subscription
02:23to watching what used to be free
02:25or paying for an expensive education
02:28that won't lead to a job?
02:30Really, any financial milestone.
02:33That's right.
02:33To get a roof over your head,
02:35you need to earn credit,
02:37which is really just showing
02:38you own a little square
02:40that you have to pay off continually.
02:42Somehow, that's what makes you trustworthy
02:44and shows you're good with money.
02:46We've made it impossible to live
02:48without our plastic numbers swiper.
02:51We're putting chips in some of them now.
02:53Look at that.
02:53Oh, they're putting chips in.
02:55Oh, gosh.
02:55Conspiracy theorist Rachel's going to enjoy that one.
02:59Okay, so this is just so funny
03:01because I'm like, yeah,
03:02this is the world we're living in
03:04that we feel like we have to have debt,
03:07specifically credit cards.
03:08Get a credit card.
03:08Build your credit.
03:10In order to have a roof over your head
03:11to get a house,
03:11even though we know
03:12you can do manual underwriting,
03:14it's totally fine.
03:15You can get a house without a credit score.
03:17But man, just like the picture of thinking
03:20how normal it is.
03:21It is so normal.
03:22There's no way you can do life
03:23without this plastic card.
03:25And how well they've marketed that to us,
03:27you guys.
03:27Like, we think it.
03:28To the fact that when someone says it out loud,
03:30it's sarcastic and funny,
03:32which is what we're experiencing now.
03:33Okay, keep going.
03:34You can't even use these everywhere.
03:37You can use it in some places
03:38that pay me to accept your card.
03:41Otherwise, you can just use money,
03:43which is what people
03:44who are taking your money would prefer.
03:46I'm an expensive middleman
03:47who's charging everyone extra
03:49for using my plastic cutout.
03:51Also, you'll probably need
03:53a different swipey swiper
03:54when my card doesn't work
03:56at one place where another one does work.
03:58Is it harder to keep track
04:00of how much you're spending
04:01when you don't physically see
04:03the presidentially decorated paper strips
04:06leaving your hands?
04:07We're counting on it.
04:09Ah, okay.
04:11See?
04:12They know, you guys.
04:13They know.
04:14I bet he's a fan of Ramsey Solutions.
04:17Yes, that when you spend with cash,
04:19you actually end up spending less
04:20because, like he just said,
04:21it is leaving your hand.
04:22You have to trade something
04:23in a transaction.
04:25And what that does to your brain,
04:27the pain centers of your brain light up.
04:29Something happens
04:30where you feel money leaving.
04:31It does something different
04:32than just swiping and keep going.
04:34But he said, yeah,
04:35that's what we're hoping
04:36is that you just keep,
04:37you keep going
04:37and collecting more and more.
04:39So, so interesting.
04:40Okay.
04:41So these days,
04:42every dollar matters.
04:43And taking care of your family
04:44matters too.
04:45With Christian Healthcare Ministries,
04:47you can care for your family's health
04:48and bank accounts.
04:49To learn more,
04:50go to chministries.org slash Rachel.
04:53Courage you to go paperless.
04:56We'll say it's for the environment,
04:58but it's really because
04:59we know if we send you emails
05:01of the charges you made,
05:02you'll only skim the email
05:04if you're reading them at all.
05:07Here's where it gets fun for me
05:08and exclusively no one else.
05:11We made it so the longer it takes
05:13for you to be able
05:14to pay us back on time,
05:15the more money you'll rack up
05:17in interest
05:18and the harder it'll be to pay off.
05:20And doesn't that sound like
05:22it should be illegal?
05:23It's not.
05:24It's interest.
05:25Interest is a random percentage
05:27we charge you
05:28because you made charges.
05:29This is going to get
05:30pretty technical
05:31and pretty crimey.
05:32So let's look at a graph.
05:34If you're the average
05:35American credit card holder,
05:36then you owe more
05:37than $10,000 in debt.
05:38Let's say your interest rate
05:39is 24.99%
05:41and you're paying off
05:42just the minimum
05:42because times are tough
05:44or, you know,
05:44because times are normal.
05:45That means that in 10 years,
05:47you'll have paid
05:47more than $26,000
05:48and still owe over $11,000 more.
05:51And that's just 10 years.
05:52After 50 years,
05:53you'll have paid $165,729
05:56and still owe more than $17,000.
05:58So you will always owe me money.
06:01But the more you use it...
06:03Okay, pause.
06:04So that is,
06:05that's the thing, you guys.
06:06Like, that's one reason
06:07that we talk about
06:08this whole industry
06:09being so toxic.
06:09So, where the average American
06:11owes $10,000 in their credit card
06:13and some people are like,
06:14well, I pay mine off
06:14every month, all of it.
06:15And I'm like, okay, yes.
06:16Maybe you do.
06:17Maybe you're one of the
06:18less than half percent
06:20of Americans,
06:2148% of Americans
06:22that actually pay it off
06:23every month.
06:24You're still benefiting
06:25from people stuck
06:26in that system
06:27he just showed.
06:28So your rewards
06:29and your points
06:30and all of that
06:31is off of this toxic system
06:32of these people
06:32that are stuck in it.
06:34And until they decide,
06:36hey, I'm going to have
06:36to sacrifice
06:37and get an extra job
06:38and do what I can
06:38to pay this off
06:40to get above it,
06:42to get beyond it
06:43versus just stuck
06:43in this hole.
06:44Like, that's the industry.
06:46That's what they want.
06:47And so they paint themselves
06:48like they're trying
06:49to help you
06:49or that they want
06:51to advance you
06:52and you get free,
06:53you know,
06:53upgraded first class tickets
06:55to this, there,
06:56whatever the thing is.
06:57And I'm like,
06:57yes, but you're stuck
06:58in this industry,
07:00in this industry
07:00that does that to people.
07:02Like, it's crazy.
07:02I read a book
07:03called Four Winds
07:04about the Dust Bowl
07:04and all these Okies,
07:06they called them,
07:07that migrated
07:07to California
07:08and they got put
07:09to work on these
07:10huge farms
07:11and they had like
07:12their own grocery store
07:13and their own bank
07:14and all this
07:14and they had to use
07:15the owners,
07:17they had to go into debt
07:18like in order to buy food
07:19at that grocery store.
07:20I mean,
07:21it was like this sick cycle
07:22and I'm like,
07:22man,
07:23that exact specific thing
07:25obviously is not happening
07:26like right now
07:27exactly that way
07:29but I'm like,
07:29but in the same way
07:30there's financial industries,
07:32part of the financial industry
07:33that is doing that,
07:34that's getting people
07:35stuck in a cycle
07:36that if they just live in it
07:37they literally mathematically
07:38can't get out
07:40and so,
07:40oh,
07:41thanks for that.
07:41Okay, keep going.
07:42The more worthless things
07:43we'll give you.
07:44All right,
07:46yes,
07:46let's hear it first.
07:47stuff
07:48or even better than stuff,
07:51cash back
07:51which is just a tiny portion
07:53of money
07:54that you'll use
07:54to pay off the debt
07:56but of course
07:56you'll never see actual money.
07:58The more you charge,
07:59the more cash back
08:01we give you.
08:02It's like you're digging a hole
08:03and we throw in a handful
08:05of dirt
08:05to help you get out
08:06of the hole
08:06but only after you dig
08:08five feet deeper.
08:10If you're worried
08:10you might not be able
08:11to pay off this credit card,
08:13we'll encourage you
08:14to get another card
08:15to pay off that one
08:16and then another to pay off that one.
08:17The more credit cards,
08:19the more you have to pay
08:20and the more you owe us.
08:23It's literally
08:23the same apparatus
08:25as a Ponzi scheme
08:26but we tell you about it
08:28with a 300 page
08:29tiny printed booklet
08:30that you won't read.
08:31So,
08:31get yourself
08:32a Horton Card credit card.
08:34Go ahead
08:35and swipe it through machines
08:36till you owe us billions.
08:39Oh,
08:40is that too harsh?
08:42Oh, here.
08:43Hey, Laugh Machine,
08:44make the people feel better
08:45with your jokey words.
08:47Hey, so you guys
08:48ever notice how
08:48Katie,
08:50Katie Perry is,
08:51um,
08:52You feel better already,
08:54right?
08:54Katie Perry's basically
08:55just zoe additional
08:57but gassier,
08:57so.
08:58I'm Roger,
08:59by the way.
09:03Oh, man.
09:05And here's the crazy thing,
09:07y'all.
09:07It's like,
09:07it's all true.
09:08I'm like,
09:08yes,
09:09it's exactly what's happening.
09:10Exactly what's happening.
09:12Oh, man.
09:13Okay, well,
09:13I hope that gave,
09:15enlightened me a little bit
09:16in my day
09:17and just remind me,
09:18yeah,
09:18that's exactly,
09:19exactly what is happening.
09:21So,
09:22hopefully you got a little
09:22entertainment,
09:23a little education there,
09:24but if you have a friend
09:25who wants the insight
09:26scoop about credit cards,
09:27make sure to send them
09:28this video.
09:30And remember,
09:31just stay far away
09:31from debt and credit cards.
09:32It's not worth it.
09:33It's just not worth it.
09:34You can use a debit card,
09:35get everything you need
09:36to have in life,
09:37but it's your money
09:38you're actually using.
09:39You're not engaging
09:40with the bank
09:41and their money
09:42and then interest
09:43and all that
09:43that we just saw
09:44in that video.
09:45Oh, man,
09:45so crazy.
09:46All right, you guys,
09:46remember to take control
09:48of your money
09:49and create a life you love.
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