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Transcript
00:00This is on a card that's maxed out that we're missing payments on and is at a 30% interest rate.
00:05That's a 30%?
00:07Yes.
00:08My first card, I had it at 18%.
00:10That was 18%!
00:15I want to demonstrate how bad 30% is.
00:17Uh-huh.
00:18Let's say I buy into the S&P 500, the best returning index fund.
00:22You're going to write that down for me though, right?
00:24Sure.
00:24Over the course of its lifetime, all up years, all down years combined,
00:27the money that I've invested is making 10% on average.
00:31You are losing three times that on this credit card.
00:34Three times the best that you could hope for in the overall stock market.
00:40Okay.
00:40What interest rate do you think this one's at?
00:42I don't know.
00:44What do you think?
00:4520.
00:4627.
00:470.24.
00:48Why are they all that high?
00:49Because they want to make money and there's also a lot of risk involved in giving someone like you access to money.
00:55And they know they can take advantage of people like you.
00:57Yeah.
00:58I'm not saying it's a good thing, but they know they can.
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