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Learn more about Christian Healthcare
Sponsors pay the producer of this show, The Lampo Group, LLC, advertising fees for mentioning their services or products during programming. Advertising fees are not based upon or otherwise tied to any product sale or business transacted between any consumer or sponsor. The following sponsors have paid for the programming you are viewing: Christian Healthcare Ministries
the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, The Video Credit Card Companies Don’t Want You to See
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LifestyleTranscript
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.