The Secret History of the Credit Card (full documentary) | FRONTLINE
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- เผยแพร่เมื่อ 13 พ.ค. 2024
- FRONTLINE and The New York Times examine how the credit card industry became pervasive, lucrative, and politically powerful. (Aired 2004)
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Millions of American families use their personal, general-purpose credit cards to make ends meet. With no federal laws on the amount of interest or fees that can be charged, credit cards have become the most profitable sector of the American banking industry.”] In “Secret History of the Credit Card,” correspondent Lowell Bergman uncovers the techniques used by the industry to earn record profits and get consumers to take on more debt. Some experts argue the profitability of credit cards began when the banking industry successfully eliminated a critical restriction: the limit on the interest rate a lender can charge a borrower. Deregulation, coupled with a revolution in technology enabled the almost real-time tracking of personal financial information and the emergence of nationwide banking, facilitated the widening availability of credit cards across the economic spectrum. But for some, the cost of credit is often far greater than it appears.
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Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
This documentary needs to be played to every high school student in America.
And of course, it won't be.
The credit card companies used to promote offer cards on College Campus when I was in school, get them young and you get them for life!
Yes and the mechanics of credit cards and credit is something that needs to be taught along with civics and as I have recently viewed another You Tube channel there should be the mechanics of the Social Security system and what it entails. These subjects should be taught in high school, quite possibly starting in the ninth grade which would be considered the freshman year, as well as economics (but down on a level that the students can at least grasp the fundamentals). This does seem to be quite a load but these young people are exposed to the cruelties of life with no preparation and all they have to fall back on is the "college of hard knocks". You know these subjects (less civics ) were generally left to the individual families (the parents) but some were good teachers and good examples and some were not. In these days and times where everything can move so fast due to the speed and availability through our computers, being well informed can save a lot of our young people a lot of financial trouble in the future. Of course it is a "leading the horse to water but you can't make him drink" situation but at least the effort should be made to educate our youngsters (at least down to a level they can understand) about the things they are going to be facing when they enter life as adults.
The good thing is research shows that younger Americans are more fiscally responsible as the high inflation and turmoils in the market have encouraged them to be cautious but what’s worse is that the boomers and some older millennials are piling up their debt credit and leaving it up to the next generation
@@portcybertryx222 Personal credit debt is not passed on to offspring. Boomers are not all bad, on the contrary we have the highest ever level of wealth transfer to the next generations in the US, from them Boomers. Gen Z also has the benefit of better Financial Advice, beyond what their parents had access to. We as a nation are more affluent but the middle class is losing ground and wage disparity is at its highest in 40 years. Every generation gets gains but we may now see the decline of longevity since Gen Z is not following the dietary and exercise advice that is also more widely available to them now. Save your money and be prepared for long time care insurance Gen Z.
It’s painful knowing this was filmed in 2004 and what was waiting for them a few years later.
This was before Warren ran for the senate, Gods she was young!
@@JohnSears1970 And looking more Native American than ever.
My parents did not teach my sisters and I anything about finances. My dad was of the opinion that family finances were none of our damn business. I had to learn every thing I know from hard knocks and a career path into the banking industry. I also read voraciously every thing I could about budgets, credit cards, loans, so that I understood what was happening. We need to do better by our children by educating ourselves.
Right by staying away from credit cards
Credit cards are a tool like anything else but if we don't understand how they work and how easily we can be trapped, they can do far more harm that good.
Agree
Yep lol
That's because your parents were not taught better either so they don't talk about $$. My family is the same. I can tell who has figured out how to manage their $ because they don't become defensive when the subject comes up.
My grandfather’s last words to me were:
“Don’t spend money you don’t have yet.”
I took his advice. I have no credit cards.
@rianmonnahan 8 Let no debt remain outstanding,...(Romans 13:8)
...and the borrower is slave to the lender.(Proverbs 22:7)
We should read Bible carefully and meditate on it, we'll find God's words always protect us from being trapped!
Experts of deception 💲💰
I don't either
That’s why I never took out loans, and have always used my debit card.
how do you have a house and car lol
Just paid off my $66,000 consumer debt earlier this year. Best feeling ever being debt free.
@Lesley T You’re not getting an answer
@Lesley T If I had a nickel for every time someone typed “must of”
Gonna borrow some more now? 😉😂
@@jollama "Must have had"
I paid of all of mine but that is only because I was lucky enough to get an inheritance.
I have been following Ramsey lately and trying to pay off and cut up credit cards. This is amazing motivation!
Why would you want to get rid of your credit cards. They save you a lot of money.
Amazing report. Released 19 years ago but so worth watching. Glad you posted it. Will share link to it with others.
9:50 “It’s nice to be able to spend what you don’t have.”
🤦♂️ That’s the problem.
the normal people they invited, just don't understand anything about finance!
@@lucasrem1870 aaaaaaaaa
Isn’t it nice to live so cluelessly? And when these people can’t pay their credit card debt it’s the credit card companies fault for being “ unfair.” Puhleeze.
When was this filmed/aired?
@@ashleelarsen5002 2004
2004: Credit cards are a bad deal for Americans
2008: Mortgage Industry - hold my beer!
2020: COVID - bye.
All of history: some people are dumb. No financial sense, no savings, no life planning, just buy buy buy and YOLO. They got what they signed up for.
202?: Total collapse…and UBI to the rescue?!
UNDERRATED COMMENT !!!
26 trillion to banks and company’s and QE for too big to fail 2007-2010
Aired almost 20 years ago! It’d be nice to see an update on this report, things have changed so much.
What 'thnigs', nearest and dearest?! The banking collapse of 2008? Wall Street taking over the federal government, then churning the dollar-printing machines, using the newly issued FIAT to reinvest in the same junk commodities? Is the so-called middle class now not even able to afford health care?
Yeah! It;s a lot worse than when this documentary was broadcast, because you and the likes of you keep voting for the marionnets, who are bought and aid for by the Wall Street!
Do it Yourself
@@masudsaleh5155 Rude.
They're alot worse, CC debt is at an all time high
Amazing even in the age of Social Media and information at your fingers people still want info handed to them.
The college loan industry took good notes when this originally aired.
I lost all my money too,.... in a get-rich-quick scheme called College
@@straytarnish9443 sucks
@@Jay-jb2vr you were a good teacher 🥰❤🥳
@@straytarnish9443 yea I stayed away from college
@@Jay-jb2vr I couldn't figure which half the top 10% was in
My Father told me if you don't have enough money to buy something out right then don't buy it , or even worse borrow it.
My Dad is similar, he said "when you borrow, you borrow with sorrow."
My father says the same and he's right!!
💯 agreed. My husband and I live just like that. We use a credit card just to maintain an excellent credit score but if we can’t pay it off right away then we shall not purchase. I unfortunately learned the hard way once I was 18 and entered college and had credit cards thrown at me. Luckily I paid them off and learned how to use credit cards. An important job as a parent is teach our kids macro/microeconomics!!!
Well, it's true... unless you are buying a house or an asset that provides income.
Unless you’ve been living paycheck to paycheck and need it for basic necessities. Then you’re screwed.
The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.
They do say gold will crash in a liquidity crunch However, many of those holding precious metals are preparing for such an event. So they are unlikely to be forced sellers. The paper market would tank and hopefully collapse.
I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.
we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this consultant that guides you help?
My Financial Consultant is Vivian Carol Gioia. I found her on a Kiyosaki interview where she was featured and reached out to her afterwards. She has since provided entry and exit points on the securities I focus on. You can run a quick online search with her name if you care for supervision. I basically follow her market moves and haven’t regretted doing so
Vivian has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I set up a call with her so I could use her services.
It's crazy how we don't learn any of this in school..
With respect Awoken, it's Mom, and Dad's responsibility.
I did, but I went to a good high school. My favorite part is when my teacher dramatically threw open his card wallet showing he had 25+ credit cards. It literally went to the floor.
Now that would be counter productive.
Maybe--but most of it is common sense. My parents told me NEVER to carry any credit, and I haven't--I use it as if it were a debit card. My operating assumption is that corporations are criminals and there's little protection from them. DON'T BUY WHAT YOU CAN'T PAY FOR IN CASH. Simple wisdom everyone followed til the 80s.
This is by design.
Nothing's changed after 19 years since this program was aired.
Ms. Warren grew older, I guess.
There are now disclosures on credit card statements telling the consumer how much they will have to pay in total if they only pay the minimum due, and also a consumer can easily find out their FICO score for free. Both were issues when this documentary was made. But even having this knowledge today does not make the system fair for consumers.
a lot has changed. big banks allied with controversial causes/movements so now the focus is class warfare. really it should be the united 99% of americans protesting the 1%
@@meltinkfuli was going to say the same. They absolutely have added the disclosure of if u only pay the minimum it will take u this long to pay this off. Also there’s definitely many more options offered to costumers to help them pay their cards and not ruin their credit which i think is great.
Humans will always want more crap. More more more.
Can you imagine living without a credit card, I've done that my whole 57 years.
so you buy nothing online ?
@@guyaldrich5878actually, that probably helps keep them from debt too.
I’ve made my 50 years without one too. Debit card for purchases that require a card.
Debit card is a link to real money,no way I am using that online or anywhere !@@CA-oq1ce
Do you have a business?
When you read articles about financial freedom, you may hear people talk over and over again about how they spend next to nothing to be able to retire at a younger age like 30. Instead, they may have already achieved financial freedom and boast about how frugal they were in order to retire well before the typical retirement age.
The first level of financial freedom is creating an emergency fund. Ideally, this will also include paying off any credit card debt.
Unfortunately, living paycheck to paycheck is the reality for millions of Americans. I think I like to play again with the stock market, any recommendations?
Planning for retirement, or even financial freedom, is a marathon and not a race, as the saying goes. Breaking your financial independence goals into small pieces can help you stay on track while making the process a little more manageable and hopefully a little less stressful. Even if you are starting small, the important thing is to start.
The investment creates a safe haven for the future. Everyone needs it so you don't go bankrupt when you stop working
Would you mind sharing information about the advisor who helped you? I am now 39 years old and would love to grow my stock portfolio and plan for my retirement.>>>
I don't really make recommendations, I just invest for profit and mind my own business, but I would do it for a reason and it is for the betterment of all.
That would be so kind of you if you share with us your source of financial freedom.
My Mom ALWAYS said, "DON'T SPEND MONEY THAT YOU DON'T HAVE!" Wise Words To Live By: 1.) ALWAYS pay your cards off every month. 2.) ALWAYS watch your FICO score. 3.) ALWAYS utilize credit below 30%. 4.) NEVER use the cash-back feature, NEVER carry a balance, and NEVER max out your cards. 5.) ALWAYS understand that the card issuer can change interest rates and balances without notice.
@LuxuryLyfe, I think Heather meant the advanced cash option because the interest and fees are higher. However, I agree that cashback is a great perk when you use CC responsibility.
The 0 interest period is good and the reward miles are wonderful.
Don't use credit! Solved!
I just stopped using credit cards all together in 1998 and have been a much happier person for it. Not giving a greedy card companies 20-30% mark up on *EVERY THING* I purchase has been such a blessing. I use to purchase things on sale or even clearance with my CC and then by the time I’d pay off the balance in full, I paid double of what it was bought at. But there’s no WEIGHT held over me each month.
🥃👱🏻♂️YOUR OLD MOTHER DONT KNOW WHAT SHES TALKIN ABOUT
Genuinely invite Frontline to update these. Even a 15-minute epilogue on “Here’s what’s changed since we produced this in ‘04” would be meaningful and educational.
And now ppl are enticed to pay with their iPhones.
The cc company does now state how long it will take you to pay the balance if only making the minimum payment. I definitely would like an update on this as well.
ABSOLUTELY
All is corrupt top to bottom.
Except that pretty much nothing has changed. Banks still make Bank on people with bad score
Or you could just not use credit cards. I cancelled my last credit card 15 years ago and it's one of the best decisions I've ever made.
This is by far the most eye-opening session I've ever seen I learned much and I fell into these traps
I'm glad being 23, watching this before considering taking any sort of credit card. I feel these types of videos and topics should be taught in schools. But then again that won't happen unfortunately
Is not part of the state curriculum in any state.
I am so glad all the Old PBS documentaries are available on youtube! A lot of them are seminal works.
I think one of the biggest issues with credit cards is the lack of education when it comes to how to use them properly. Our schools in the US teach next to nothing when it comes to personal finance. A lot of people get into credit card debt because they simply don't know any better. I got into credit card debt in college because I wasn't aware of the consequences of not paying my card off. The whole buy it now and pay it off later deal seems pretty harmless if you aren't aware of the interest rates. Once I was told how much it costs to be in credit card debt, I immediately started paying my card off and I've never been in credit card debt since. Credit cards can be an extremely valuable asset if you use them responsibly and pay them off each month, but so many people are never taught to do this. Credit card companies don't want consumers to know that.
They don't want the wage slaves to know it's designed to enslave. And somehow they've programmed Americans to live by the credit i.e. social credit score.
That's BS. The education is there, the problem is the education is given to teenagers - the same teenagers that take the loans in the first place because they don't care about the consequences.
For the same reason that Constitution and Bill of Rights were dropped from the curriculum.
When the kids started paying for school lunches with a card they were training them to use plastic instead of cash. Banksters getting them while they're young.
You are so right? My kids went to different high schools and only one had the option to take a class about financial responsibility. She's the most financially savvy member in the family.
This is definitely a eye opener I think everyone should see this . I've never gotten a credit card in my whole life and I'm almost 49 years old ..definitely gonna share this with my family and friends.
I’ve always said that a credit card is for people who don’t need it. If you need a credit card to pay your bills don’t get one.
How are you paying for TH-cam? The internet? If you’re having a company take money directly out of your bank account, that’s dangerous.
This documentary was very informative. Loving all these frontline documentaries none have disappointed.
credit card companies be like “yesterday’s price is not today’s price” 😂
BING BONG! 😂
You be like. Duh 🙄
Let no debt remain outstanding,...(Romans 13:8)
...and the borrower is slave to the lender.(Proverbs 22:7)
We should read Bible carefully and meditate on it, we'll find God's words always protect us from being trapped!
This is a first class video on a difficult subject, very well edited; well done, PBS.
How they get the interview sequence and questions in order for maximum effect is unreal. Just magical.
This so-called documentary is trying to hide the real scumbags behind most of the credit-card companies. At 18:15, they interview Andrew Kahr as an innovator. Then later on, at around 35:00, they talk about Providian and how they scammed millions of people. They never mention that Andrew Kahr is actually the founder of Providian and the one behind the scam!!
@@ghaziabu-dayyeh602 That's why they said he wouldn't agree to an interview, if they did mention it.
@@bobbobbing12 Yes they mentioned that he wouldn't agree to an interview unless they agree not to disclose where he lives or discuss certain things. The interview is useless and they didn't mention that he is the founder or Providian. This isn't a secret and it's well-known among old timers like myself!! They are hiding information from the younger generations !!!
@@ghaziabu-dayyeh602 can't ppl google him?
I work as a financial coach. Help people get out of all these kind of debts. Truly tragic. But there are ways out!
Life has enough stresses, money doesn’t have to be one.
Dave Ramsey has accurate views on credit card.
Great video! I have a question, I have two fraud inquiries on my reports that I would like to get removed. I've seen your video regarding this, but Im still a bit confused. So I know my first step would be making a call with the credit bureau (Experian) but should I also make call what time? And would I be never stop sending a good compny *VCORPINVEST* to my friends and people I know regarding any credit situations
It is every parents responsibility in this day and age to be familiar with this information and pass it on to your children. It is critical to their success as much as learning to bathe and feed themselves.
And on another note, I must congratulate PBS for this wonderful work. You would think this would be shown or maybe even taught in universities in colleges throughout America so at least people would be aware, but we all know that that’s not going to Happen
Well said. Thank you. Only thing I would change, is I think the classes should be taught in high school.
This originally aired in 2004. I graduated from high school that year. My parents taught me all about the benefits and traps of credit/debt. They encouraged me to take an approach to credit cards the same way Ben Stein does. I did, i still do. It's been a great advantage with all the points.
They want to talk about predatory practices, they should be looking at health insurance companies. THOSE are the companies that take advantage of the consumer during a critical time in their lives. They are the ones that will tell you something will cost you X amount of dollars out of pocket. Then you get a statement a month later for that procedure suddenly being not AS COVERED as they told you.
Folks have no idea. Health insurance companies practices are a nightmare.
Prof Warren was not a politician yet
@@Openmind4me2 That must be why she (Warren) said the laws are inadequate. Now that she is a politician for so many years, would she do something to change the laws, in other words, to benefit the people?
When referencing corporate America, he said “They don’t really care about you as they make it seem” realest thing he said...I’ve seen experienced it first hand in the DMV. Black ppl aren’t really respected in corporate America. Glad that he was able to get out of there and become his own boss *VCORPINVEST*
Interesting to note that my full understanding came to me several years ago when I realized that over several years of paying a little more than the minimum requirement on several cc bills, the total amount owed changed very little! Then I started thinking about how much the cc companies were making on my account alone over the years of paying that small debt back a little at a time, then I multiplied that by the 100s of people I knew personally, then multiplied that by the millions of people I didn't know and came to the conclusion that these cc companies have a stronghold on people who simply get into a habit of paying the minimum or a little more. I was dumbfounded thinking about how much money I had paid over the original amount owed, and I had 3 credit cards at the time I realized this! I started to pay aggressively on the one with the highest interest rate while paying minimum on the other two, until I was within $1000 of zero balance. At that time, the cc company (Citibank) called me at work and offered to absorb my other cc debt at 0% interest for 1 yr, but only up to a certain amount. I refused, and they continued to aggressively offer other deals and incentives. When I said no to everything they were trying, they raised my interest rate just as my outstanding balance went below $500. I paid it off and closed the account, then went on to the cc with the next highest interest rate. Paid them all off, then only kept the one with Wells Fargo open. Unfortunately, they have started some other underhanded tactics to generate business. They wouldn't let me add my son to my checking account; they insist he has to have his own checking account. He's 15 yrs old and started his first job this summer. I closed that account and added him to my credit union as an authorized user. I will close my cc account with them as soon as I find a card with the most benefits and a decent reputation. The only thing I'll have with them at that point is my mortgage. One thing for sure; these corporations are not in the business to lose money! Buyer beware, and even with the warnings up front in bold print, people live by the bliss of ignorance! I know I did!
Can you please write longer posts next time? Way too terse, pithy, and succinct.
I guess the baby needs attention. Here you go, li’l lady. Now run along.
@@marklefkowitz4385That post was very informative. 😂 Do you work for a credit card company?
@@wit2pzI appreciate your comment. Our household had the same issue. At one point even though we were always paying over the minimum balance we had one company double our minimum payments . I literally called them in tears. I told them you have two choices; you lower our minimum payments to where it was, or we don't pay you. They did lower the payment.
It feels so good to be free of credit card debit. Your description of how to get out from under their thumb is perfect.
We truly do become slaves to our debtors.
Many people venture into businesses and |nvestment to be wealthy, meanwhile I just want to be debt free.
Your business will make you rich but your investment will make you wealthy. We all deserve to be rich and have financial freedom. I pray everyone reading this becomes extremely successful.
You're right, Fear is one of the factors that hinder most persons to invest into crypto, most persons say ignorance..
Now is the best time to purchase and invest in bitcoin, stop procastinating
When you invest in crypto you are buying days you don't need to work
@@DavidLopez-nw3krI'm new to bitcoin trading, how can I go about it or is there anyone you can refer?? 🙏🙏
Frontline makes such excellent documentaries. I’m so hocked.
If you are currently in heavy credit card debt, don't be afraid to ask for help. I've been there. Way better off now, but I will never forget the feeling of dread and despair regarding putting a dent into the debt.
Psiros, I agree with your words. Ask for help. In my mid 20's, back in the 1990's, I amassed a lot of credit card debt on several cards. I did something about it. I found a bank that would consolidate my debt. with a lower interest rate. 4 years later, I paid off my debt to that bank. Shortly thereafter, I was debt free, financially, and still am today. People should not wait until the credit card companies send them a notice. I know there's a reason to keep at least one credit card, but I have none. I pay with cash or my debit card, which that money comes from my own savings/checking account.
Why should we care about credit card debt when the US can't even payback it's debt?
Yes.
Got screwed when bank of America jacked up our rate from 0 to 24% for no legitimate reason. We weren't late.
Paid extra every month & could the balance grew & grew.
It's illegal for them to do what they did to us.
Lucky we had equity in our house. Got a 2nd mortgage & made double & triple payments.
Blood thirsty sobs. The money we paid them woulda been nice to use elsewhere, but fckem.
Shoulda not paid any of it. The debt was occurred by interest, not from purchases.
Did you know Trump is billions in debt ? You sound funny. Only difference is he owns assets . Assets generate cash flow. That car you bought of off credit car is liability. You are debt slave.
@@thetritiumdepot9270 you are a smart person!!!
I grew up in the 80's and there were caps on the amount of interest the credit cards could charge, and retailers were forbidden on charging higher
prices for using credit. Also the ATM fees for debit cards were almost nonexistent. Today it's crazy, fees for everything, and interest rates that make it impossible to pay off the balance. It's criminal how they've gotten away with all this.
They are starting to play with fire
People will resort to banditry and murder
Home invasions chaos
This isn’t good
So true.
CORRECT, FEES FOR TRANSFERS DID HAVE A HOLD ON ME, LEARNED. NOW, WATCHING WHO IS MAKING REACCCURING CHARGES IS GOING ON
WITH USING CARDS. CKECKING YOUR BANK STATEMENT IS IMPORTANT.
How can CITI BANK BE LOOSING MONEY?
So don't purchase what you dont have.
Great thorough investigative reporting !!
Very informative. Thank you
I give high credits, 26.9% APR, to Frontline for this documentary.
Top kek 🐸
And they steal our money to make this dribble
@@trevorguthrie3054 You're getting old man
Well done sir. 👏
😭
35.90% credit card
jb.ok
I miss this kind of unbiased, unfiltered, apolitical reporting.
Then watch PBS more. They do it to this day.
Thank you so much Frontline, for covering this for us. Great report covering a huge amount of information. Great job 👍👍👍👍👍
Omg we are so happy we didn't have credit card debt since 2016. We learned to live frugally and now we saving 65% of out salary. We save for everything first before we buy anything. Life is so much easier😊
This channel is the most informative on the Internet. I love the job you guys do.
ehhhh I like Frontline but they are far from the most informative on the internet
Right on
That means views will be lower than mindless videos.
This channel doing good job at public service
Not really. Some of the contents are not honest. PBS was bought out by a big corporation as well. Not everything that you see on PBS is straight up facts some are propaganda but this one about credit cards is accurate.
A Financial literacy course should actually be required to graduate high school, America’s money and credit/loan ignorance is at an all time high.
And it is so by design.
this world revolves solely on a debt.
By design for sure
....
I slightly disagree. While it's not a bad idea, I personally believe a certificate of financial literacy should be required to take out a loan. It could even be more specific. Maybe a basic, first-level certificate is required for a home loan, a second-level certificate is required for a car loan, and a third-level certificate proving that you understand the math and laws associated with credit cards if you want to take out a credit card. The financial literacy course for high school graduation is better than nothing, but 1) the people that have the most problems with credit cards often don't graduate high school, and 2) my High School required everyone to take a financial literacy course to graduate, but when it came to actually implementing the course the material taught was so complex most students didn't understand it, the focus of the course wasn't particularly useful, and I'm not convinced the teacher teaching the topic understood the topic. I know this is just one example, but as a substitute teacher who has taught at many schools around my district I can tell you the number of teachers who properly understand the topics they are supposed to teach is sadly quite low, and the number who understand the topic AND who have a talent for communicating/teaching what they know so that regular students can actually understand it are even more rare. So yes, the course to graduate high school is a decent idea, but if you have to prove that you are capable of actually calculating interest payments for credit cards and are capable of answering questions about potential legal issues with the credit cards 1) the people who are the most vulnerable just won't pass the test and can't get the credit cards, and 2) the people who do pass the test will likely understand the risks of the credit cards they have way better than they normally would. I should point out, I am mostly libertarian and I am also usually for free markets and TRUE capitalism (not crony capitalism), but I do believe one of the limited roles of government is to act as a referee to protect consent in negotiations. I believe consenting adults should be allowed to agree to almost any agreement they want to agree to, but because credit card law is so confusing the customer often doesn't understand the contract but thinks they mostly do. In my opinion, this means the customer is no longer a truly consenting party. It is a deceptive agreement. If customers can prove they understand the abusive contract, then it's on their own heads if they choose to enter into the contact. In fact, if the terms were one paragraph and they were in plain English that 90% of the population can easily understand I believe it is fair. The 10% who can't understand should bring a family member or friend to help them out. If the terms are short and easy to understand and someone is just too lazy to read them that is on them. But the terms are not just too long, they are also written in legalese, and legal terms for words are often very different than the regular English meaning for those same words, which means that often very smart people may THINK they understand the terms they are agreeing to, but they are wrong. Plus, even if you manage to read the entire agreement and understand it, you could theoretically have to keep reading a new, long, complex agreement every 15 days. Keeping up with that is not reasonable. Even as a free-market advocate and libertarian I solidly believe the government is right to ensure that customers have at least the likely ability to understand 100% of every detail of the actual arrangement before they agree to it, which is why in this particular market, along with a few others, I fully support requiring customers to take a test where they read a few credit card agreements and have to calculate interest payments and answer confusing legal questions about the agreement in order to get a financial literacy certification that will allow them to engage in these risky and abusive contracts.
Thanks for the info
Can't believe he said "its nice to spend what you dont gave." Please think about that for a second before you swipe
I pay my credit cards off on a bi-weekly basis. And watching this piece has just reinforced my habit. I would sell my own blood first rather than pay the usurious interest rates and late fees these banks charge hardworking people.
Amen. American express had me by the balls. Thank God I has monet saved. I paid it off before the debt ballooned.
Bi-weekly payments are a good idea.
It is always smart to make as many payments as possible if you are carrying a balance and are accruing interest charges DAILY. Do NOT wait and make only one payment per month. As soon as you have a wad of cash, pay the credit card. With online account access and electronic payments, there is no reason to wait. Most credit cards will accept as many as one payment PER DAY.
Debit Card all the way. I don't give a dime to "American Excess" or any other CC company. There is a reason why these companies have large sky scrapers and over paid executives...
if you able to pay off your credit card fortnightly you do not need that card in the first place
@@davidharcot220 Wrong. As I've noted elsewhere, I get a 1.5% discount by paying wth a credit card.
In my opinion, the following 2 subjects should be absolutely mandatory to be taught at school: 1. Health/Diatrition, 2. Personal finance. This way, we could have healthier and more independent people. If the school/system doesn't support this, let's take control and educate our kids/friends about those basics. I'm sure they'll be appreciating it!
agree with you.
1. Health
2. Personal Finance
3. Local society
these should be taught very early stage
Also please teach this to your children at home. This is where it is most impressionable and where it begins. This is so important to keep them informed at an early age of the downfalls of using cc . 💳💸💸💸
@@mmp495 - a lot of parents are in debt themselves, they are the last people to teach children how to do personal finance, my parents were horrible at finances and never could own their own home (I found out years after my step-father passed away- from my Mother) in 24 years of being them being together. And my step-father was in the Korean War and could have gottin’ a VA loan… but never did, he had made up an excuse as to why he couldn’t get one that would arise suspicions. And well when his Mother passed away, my Mother found out through her Sister had told my Mother that my last step-father had been married 3 other times (before my Mother) and already used his VA loan… we found out that he had changed his name from his birth first and last names to get out of paying child-support for 5 other children from 3 other marriages, there was so many things we found out after he passed away in 2000.
They are too busy trying to tell little girls and boys to take puberty blockers and to surgical remove their body parts.
@@blankmandastankman I think we should still encourage the basics like "Cook at home. Have a lot of fresh food. Reduce processed food intake. Don't consume excess calories". There's a lot of specifics up for debate but even just following these agreed on basics, a lot of people would be miles better off with their diet.
We need to Abolish Credit !!
This documentary was nicely done! A-lot jewels dropped.
On the other hand, I paid cash all my life for everything. If I couldn’t afford to, I didn’t buy it. Then I wanted to buy a condo. Interest rates were low on mortgages and I had more than enough cash to buy the condo in the bank. When I applied for the mortgage, I had no credit score, not a bad one, nothing. Even the bank that had my cash would not give me a mortgage. They get you no matter how responsible you are.
The responsible thing is to take on debt you already have cash to pay off
It’s called manual underwriting. I have an invisible credit score. My credit score is zero. I got a mortgage with no problem. Churchill Mortgage will do manual underwriting and my interest rate was as competitive with anyone with an 800 credit score.
If you had more than enough cash in the bank to buy the condo, why get a mortgage? Just pay cash.
@@kinky_Z Because at the time we were getting several % points higher on our CDs than the mortgage rates.
According to Dave Ramsey, you can locate a company that can underwrite a mortgage for you.
Since this originally aired, we went through a massive recession the culprit for which was precisely this industry and their malicious and greedy practices. Tens of Millions lost their homes and more had to declare bankruptcy. The fact that most if not all these deceptive practices continue to exist is beyond mind-boggling.
The mix between Covid 22 and bad credit is mind boggling!
I love it..Its an awesome game!!!!
Banks are robbing us all blind.
@@user-wy2iw5vy5u .
De-regulation, greed, and our government are partly responsible for this predicament. Borrowers who exceed their income are another part of the problem. People should learn to budget and/or go without. I realize this may hit hard for some people, however, no one needs the greatest, most expensive, newest technology, etc to keep up with the "Jones'" Many of the people who lost their homes were given loans for which they did not qualify. . . .And no one went to jail. We still sit around and do NOTHING, while the rich get richer and the middle class continues to disappear. The minimum wage should be increased and the Corporations need to pay their share of taxes.
I love Frontline by PBS, top quality
I am terrified of credit card debt. I try to use my credit cards sparingly 😢
Be fearful. It keeps you alert.
“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
Albert Einstein
Gwe asinga😁😁😁
Indeed.
All have sinned and fall short of the glory of God
the rightousness of God is available through faith in Jesus Christ.
there is therefore now no condemnation for those who are in Christ Jesus.
Repent in Jesus name ! confess your sins to God.
PREACH!!
@@fearGod8 amen 🙏 🙌🏽 👏 ❤
Ahh, the old debt-trap. Sort of like a death-trap but worse, because you might live through it.
I pay them to zero and try not to use them.
You should do one but for the uk
Just file for bankruptcy
It's a financial bear trap
Forever maiming your wallet
@@lynettejohnson5111 the messed up thing about that is.... your credit score usually stays low or goes way down when you pay off your balance. The CC company's reward you for keeping a balance about 200 - 500 dollars sometimes, that's how you build credit to purchase things like a house or get a business loan.
God that group interview at the ten minute mark is scary.
Old folks when I was a kid gave me wise advice. They said if u can not pay cash for “it” u do not need it. That stuck in my head through out the years and I do not own a single credit card.
Credit cards are like asking a big bully for money. Sure here is 50$ but ur gunna owe interest with fees.
It’s no brainer, u say no thanks and walk away. Credit is evil and the worst bully ever.
Live cheap and save big. 😊
When they started interviewing everyday people who said it was addicting to have a credit card and saying it was fun to be able to buy something that you can't afford, I was like no way those are real people.
Or the expert Elizabeth Warren. Lol
@@johnstown2451 that name sounds familiar lol
They're real. And they're everywhere.
On a lighter note, it seems like Elizabeth Warren is the type of woman that could be extremely mad but will still manage to stay polite and wouldn't drop one vulgarity.
She was a good looking woman, back in the day.
She got that professor job at Harvard, only because she is a full blooded Indian.
In the beginning I was forced to have a credit card in the 70's when I had finished working in Bahrain and returned to the New Orleans Airport and tried to rent a car with my passport and pay cash. I could not rent the car with out a passport even though I had $10,000 cash with me I had to call my sister at 2:00 in the morning to drive from Baton Rouge to pick me up. I worked internationally and found out that I could not rent a car or reserve a hotel without a credit card. However, I always settled the bill with cash or check. I made it a point to never pay with a credit card. Finally the debit card came out and I now can use it to reserve cars and hotels. 90% of my transactions are in cash. Only when I buy something on line do I pay for it with the debit card. I am a construction worker now 76 and retired, never been in debt, never made a loan, and always paid cash even for a car or a home. I guess why I have no money worries in retirement.😊
Back in 82 Credit Card companies offered my girlfriend MC, Visa and various others. I advised against it but she took bait. The trap back then was that if you 'developed a Credit History' you'd build a healthy FICA score which eventually became necessary to damn near to anything in as much as get a job.
The banking industry created this money making scheme just for themselves and created the FICA system to insure everyone would have to be involved in order to do the most basic of financial matters.
Today, I pay cash for everything and my FICA is shit because I don't use credit.
It screws with everything in as much my Car Insurance rates. And I can't even argue it to those I need services from .
Screw the Financial Industry.
Get one card and pay it off every month. I can tell you are responsible enough to play their game and win.
PBS is the best media outlet the United States has. Their journalism is the very best. Period.
I'm using a debit card (most of my country is) and have been actively discouraging family members and friends to avoid falling into the trap of attractive credit card offers which banks are trying to push everytime. This documentary is still relevant and gives out more insight into reading the damn fine print to get those details.
Issue is you have to use credit cards to build credit
@@GrandisArcanum no. Theres other ways to build credit. Its not like people didn't start building credit before they existed
@Dubakoor Damaka oh please. Im 35. Got my first credit card 4 years ago. Before that, I had 3 successive car loans. On the 3rd application, the salesman said "you have old man credit " in the good ol US of A.
If you actually know how it works credit can be extremely useful.
@@AWOL401 indeed. Especially with those 0 to 2% interest rates. The key is finding the right places to borrow
Man, the Dodd segment is crazy. The sentence on how a corporation just blocks congress from passing something should not be a thing and how he said we'll look back and wish it was passed is accurate.
" The only thing useful banks have invented in 20 years is the ATM " - Paul Volcker, former Chairman of the Federal Reserve
You are never taught about money for this reason. You are controlled until learning the facts.
@rianmonnahan 8 Let no debt remain outstanding,...(Romans 13:8)
...and the borrower is slave to the lender.(Proverbs 22:7)
We should read Bible carefully and meditate on it, we'll find God's words always protect us from being trapped!
@@freedomhelpandhopeallarefr5626 amen! We were told that the love of money is the root of all evil.
Very informative
I wish I watched this documentary when I was 24 yrs old, but you live and you learn, and learn to manage credit cards without payimg interests each month.
I just became debt free last month. I paid off $24k in credit card debt in 4 years. It felt like I was throwing a thimble of water at a bonfire, but I kept chipping away at it & it felt So GOOD to make that last payment, and now I have an extra $1500 a month that I don’t have to give to the credit card companies any more!
People, you CAN do it! Get off the hamster wheel of debt! Pay cash for everything! Live within your means! Stop being such consumers! I also suggest reading Dave Ramsey books as a general guide to start your journey out of the hell of debt!
I feel so old seeing this documentry from half my lifetime ago. Still feels relevant despite being dated.
💯
SMH. I’m so old, this doesn’t even seem like it was really that long ago. Just over 15 years. Pretty recent, in my opinion.
Look how young Elizabeth Warren is!
The actress in that Hawaii!!! Commercial went on to work at pbs. Ironic.
So old it was One Fifth my lifetime ago. lol
WOW 😳😳😳, very interesting and informative. I will pass this video on to other people 😉
Wonderful documentary. What I always appreciated about Frontline/PBS production values especially in the mid-2000s is the way they get you into the story. The cinematography, the lighting during the interviews, the voiceover, the way the story is written and constructed really gives you a feeling you're getting an inside look and an understanding into what went down. I hope Frontline is still like this today. Haven't had the chance to watch any of the newer docs yet.
Agreed. And would also be interesting to see an update on this story. A lot has happened since 2004.
I'm with you. I just felt like I could really trust that reporting. Ted Koppel is getting older, I don't think he's very involved with Frontline as much as before
Yeah they started off at a Cattle Auction hahaha...ease you in to corporate greed 😂
"Haven't had the chance to watch any of the newer docs yet." 👇
This is from 2004, that's 18 years ago:
stale 1 (stāl)
adj. stal·er, stal·est
1. Having lost freshness, effervescence, or palatability: stale bread; stale air.
2. Lacking originality or spontaneity: a stale joke.
3. Ineffective or uninspired, usually from being out of practice or from having done the same thing for too long.
@@fritzstehr number three on that list of definitions is defined also as Insanity
This should be shown in every high school in America.
@ Lee Galen… I fully agree with you. This is something they should Learn… but then look What they are “Teaching” now. CRT… Marxism… Communism… Communist Core for Math. Math is Math. I love it because it Makes You Think. I HATE Math… Because I CAN’T do it. They should be Teaching Science… it also teaches Logic. They should be Teaching History. I’ve always found History quite boring and Hated it. Now… I look at it from the Social Science point of view and find it Quite Interesting. With History… THEY NEED TO LEARN IT… Everything that seemed to happen with Hitler… is HAPPENING RIGHT NOW. This video is about LEARNING… it is about LIFE… and it SHOULD BE LEARNED. I’m surprised this video would still be here. Why? Because these Crazies don’t want you LEARNING ANYTHING. Our Schools now… They teach only One Subject. That Subject is called STUPID. When the schools teach Stupid… The People are Stupid. When the People are Stupid… Society is Stupid. When Society is Stupid… The World… is STUPID!
"if you don't find a way to make money while you sleep you will have to work hard until you old". Invest more spend less
Assets that can make you rich
Bitcoin
Stocks
Real estate
@@noahgonzalez9041 Stock's are crashing, Bitcoin investments Right now will be at every wise individuals list, in a month you will be ecstatic with the decision you made today
@@seanbenson5898 You're right, it's obvious a lot of people remain poor due to ignorance
I'm looking for something to venture into on a short term basis, I have about $6k sitting in my savings
Starting early is the best way to getting ahead of build wealth, investing remains the priority
history and facts! great way to learn!
Unfortunately not much has changed with the industry since this aired. One way to combat this is through education in grade school. Every high school student should go through a mandatory personal finance class. One of the main topics should be revolving credit and a sample credit card agreement should be read and analyzed by every student under the guidance of a teacher with some knowledge of the subject.
Or we could force the credit card issuer to offer counseling and guidance to alternatives as we do with women's health providers!
I 100% Agree 💯, we should do something with this information. This video did get 1 million views and 16k likes within a month of it being released , proves that a majority of individuals who watch this are on the same boat. Imagine if we all worked together and found a solution for this problem.
@@numbersix8919 they want to make money. No way they want the average person to do well when using their credit cards. It is all about them making money. 🤷🏽♀️😔
I graduate high school in June. Current semester of my government class is Economics. This video was part of an assignment
If they taught / teach this in their controlled school systems, most of us would be millionaires effortlessly by 25-30… just by learning the truth about financial literacy. The whole curriculum is controlled for a reason, have to self educate the youth on all the things hidden from them or begin to dismantle and recreate an entire new education system
It has gone from "spending what you don't have" to, "I can't go to work without using my credit card, because the parking garage no longer accepts cash". I was shocked when I was in The Netherlands, when I ate breakfast; and they told me that I cannot pay in Euros. It should be illegal to force people to use credit cards; as cash is legal tender. When I had my card max out once, it was a nightmare because online sites, my parking garage, etc.... can't take cash or checks now. I thought I was smart and bought some pre-paid cards; only to find out that on a $10 purchase, they would charge a few dollars PER TRASACTION; making it useless for small charges. It wasn't compounding interest; but definitely a rip-off.
Not all pre-paid debit gift cards charge huge fees per transaction.
I'm sorry Rob, but you need to learn basic money management. If you don't want to use a credit card, your back will issue you a debit card that works worldwide.
@@donchampagne6211 You don't get it. I live in the United States, and people are not taking USD. I am in Europe, and they aren't taking euros. If I got buried under medical bills and can't get a credit card, I couldn't just do the sane thing and pay cash. That's a problem.
when your credit card info has been stolen, the credit card company will gladly refuse to pay the merchant. i have had my debit card stolen (yes, including the pin); and it's nothing like dealing with credit card, because they need to reimburse for the stolen money -- not just refuse to pay the merchant. So the vexatious barriers to paying you back are a lot higher. The solution to this is to force people to take cash.
Credit cards are criminally insecure too. The reason why Elon Musk and Jeff Bezos are the richest people on earth is that they both created payment systems where you specify the amount the other side gets; rather than having the card number effectively be a password that you give to every gas station attendant and waiter you interact with.
This isn't an issue about LACK OF EDUCATION. It is about wealth and power corrupting the laws of our land forcing Americans to use their financial products. Lobbyists and the bribes they offer to lawmakers change the legislative scenario from OUR lawmakers to THEIR lawmakers. Understanding how lobbyists corrupt lawmakers is the education.
PHD
This episode originally aired in 2004, twenty years ago. I almost didn't recognize Elizabeth Warren's segments, who was a Harvard professor at the time.
The guy being interviewed turns into a warewolf as soon as the moon comes out!
Not much has changed.. in 2020, the average debt dropped due to the pandemic for the first time in 8 years. It's risen ever since this story was aired, for the most part.
Many ppl look at the 2 percent down as a gain. So instead of budgeting they just push the problem back. They have a mindset that they could “die tomorrow”, so what’s the point of not spending.
They don’t realize that the big banks are betting against them.
Jimm Barr Official I did hear that in 2020 the average debt did drop. I also read someplace that in recent months, credit card debt has been rising again.
Just never use your card for debt!
always pay them direct!
Negative interest!
Pandemic?
@@michaelbest1827 I'd wager it's because people didn't cure their consumerism while they were stuck at home. While at home, they took the money they normally used for going out, driving, etc. and put it towards debt, then when everything reopened, they made up for lost time.
One of those statistics floating around talked about what percentage of credit card debt was "optional" spending, like going out to eat, and how much was emergency spending, such as replacing a water heater. The optional on credit card debt was higher than emergency. People didn't really learn the lesson when they were paying it off.
@@michaelbest1827 I've heard that debt is at a all time high now because the economy is so bad that people are using there credit card as a last resort now the country is swimming in debt.
I think one of the biggest issues with credit cards is the lack of education when it comes to how to use them properly especially in financial investments. Our schools in the US teach next to nothing when it comes to personal finance and investment . I got into credit card debt in college because I wasn't aware of the consequences of not paying my card off. The whole buy it now and pay it off later deal seems pretty harmless if you aren't aware of the interest rates. Once I was told how much it costs to be in credit card debt, I immediately started paying my card off and also went to profitable Investment I've never been in credit card debt since. Investment is the key to sustaining your financial longevity, since I realized this i have been successful.
I pray that anyone who reads this will be successful in life 🙏🙏🙏
Yeah investment is the key to sustaining your financial longevity but venturing into any legitimate Investment without a proper guidance of an expert can lead to a great loss too
you're right Forex trading is surely a lucrative way to invest whether you want growth, leverage, stable income or something in between.
Yeah for sure, honestly I made 62,800 dollars within 6days of trading with Bit coin.
It really profitable Investment
Facebook 👆👆👆
Yup happened to me. Missed one payment on a card they closed that one and the other 2 cards I had with them. One of them I had never been late on and all of a sudden it was an avalanche: most of my credit cards wrote me and told me they were closing my account. The few who stayed with me told me they were lowering my credit line. I pay $600 in interest on my car note simply because of one late payment...working on rebuilding my credit and I will make sure it never happens again but all the credit cards all watch what you do with other cards and ruin your credit
I read the contract from several potential credit card offers. That's why I have never had a credit card in my entire life
Before I got my first credit card I watch lots of youtube videos and read a lot of articles. And from what I read and heard rule number one never carry a balance and I never do I don't care how much the interest rate is on a credit card it could be 50% I don't care.
It is your duty to educate yourself as a consumer and a individual. What I notice people like to blame others for their lack of information when it can easily be found. Don't expect a man or a company that is all about profit to educate you on how to save money.
You guy’s do such a good job with these documentaries 💯🙏🏻
its very good. I am not huge fan of documentaries for 2 reasons. One because most of them tell what is already known and two most of them are heavily opiniated like they care more of opinions than facts but this one dives really deep.
Nice. I finsh the hole video. It was helpful
its not only the interest on revolving accounts, its also the 3 percent on every transaction charged to the sellers that accept credit cards, which is of course passed onto the customer..
The Frontline narrator has an amazing voice. So articulate and very dramatic. Makes me want to watch the show just to hear him talk 🙂
He does them all
Will lyman
Paying minimum only prevents late fees.
Always pay credit card bill fully.
Even 1 cent less will make bank puts interest for the whole bill
They learned from the mob!!
You need to watch this. Oh my goodness.!!
They should do an updated version of this
I love how that one guy says “it’s nice to spend what you don’t have.” It’s also incredibly irresponsible.
They have brain washed people
Unless you are the ones making money off of the have nots
it was prob sarcasm.
@@taylorisamazing9304 well said. 👍
That it is...
Start teaching your children about credit and how easy it is to get into financial ruins from them as early as you can. And help them build credit as early as possible.
I started teaching my daughter about credit and finance in middle school. And when she got her first job we went to the bank got a checking account and I got her a secured credit card. She's never had to pay a finance rate and has excellent credit at the age of 23. She bought her car cash and doesn't owe any banks anything. She's working towards the goal of purchasing a home for herself and is interested in buying a duplex where the tenant can pay for the mortgage at a 15 year period and grow from there.
Credit cards shouldn't be a bad thing.
Purchasing a duplex is a very smart thing to do for a young person.
Rental property over time. Will
Make a person wealthy. But it takes time.
A smart girl.
The rent probably will not cover ALL the mortgage. But it will help. She’s probably going to have some payment. She won’t be able to live for free.
But it is a very wise decision.
But rental property at times can be a challenge. You have to be tough on people. Not an asshole. Just firm.
I would love to give her advice,
@@user-sh2mk8ew4c thanks for pointing that out. Yeah it wouldn't be free rent/mortgage,
She's starting to stack money to help her in the future purchase, for upgrade, renovating etc... I'm really proud of her, she is almost done with college will be graduating in the summer and didn't have to get loans for that, thankfully.
I wanted to make sure that she was informed about money and budgeting too. And especially living within your means.
Yes, financial education it's the key....
Exactly
Doesn’t she have to build credit to buy a duplex? I doubt she has the cash to buy that upfront.
I remember once years ago, I was late on some various debt's, and I had some credit cards and credit lines that were all in good standings canceled because of it. I didn't understand it at that time.