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- เผยแพร่เมื่อ 25 เม.ย. 2024
- The (bad) options for Americans facing an emergency expense.
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A 2023 Federal Reserve survey found that a third of Americans say that they don’t have the cash to cover a $500 emergency expense. So what happens if they need it?
In this video, we compare six of the ways Americans say they get money when they don't have it: credit cards, bank loans, borrowing from a friend or family member, payday loans, selling something, and going into overdraft. How difficult is each one to access? How does paying off each kind of debt work? And how much does each one cost down the line?
None of these options are great for someone who can’t pay an emergency expense. But some of them are a lot worse than others.
This video is presented by DCU. DCU doesn’t have a say in our editorial decisions, but they make videos like this possible.
Sources and further reading:
The Federal Reserve report: www.federalreserve.gov/public...
A range of interest calculators, if you’re currently weighing your options: www.calculator.net/financial-...
More on the predatory nature of payday loans from the Pew Charitable Trusts: www.pewtrusts.org/en/research...
Watch our full video catalog: goo.gl/IZONyE
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It's so expensive to be poor.
Even banks charge fees for people with less money and give interest to those that have a lot of it. I get the business justification, but I can't help but note the irony.
It’s expensive to not have discipline and live below your means.
@@alexpieters1354 It's rigged system. Before my time, but college used to be free or close to free, for example, in America. State schools, at least. Plus, every industry gets handouts but not the average person. If only minimum wage was tied to inflation and COL...
Are all my replies being censored? LOL
@@SayAhh I don't see any besides this one!
How interest rates of more than 100% per year aren't illegal is absolutely beyond me. These things are basically designed to bankrupt poor people.
Where I live (Canada) anything over a certain APR (50 I think) is criminal and considered loan sharking. Payday loans and pay later services seem to get around that by using a mix of service charges and absurdly high (but still legal) interest rates. I wish the government would do more, I wish we’d follow suit with the US’ current administration starting a war against ‘junk fees’
In my country there's a maximum of 'Central Bank Interest' + 40% per year and the total cost (fees and interest) for the whole duration of the loan may never exceed 100% of the amount borrowed. I'd like to see it be even stricter, but it's something at least.
The easiest answer is a credit card and you have a whole month to pay it off.
@@ryantetreault3447 agreed, but this doesn’t work if you don’t already have a credit card, or have no available credit - a situation I wouldn’t find myself in but have seen it happen time and time again.
@@ryantetreault3447 if only schools taught personal finance, what a credit score is, etc.
Terrible ad placement and transition. Should have the commentator or letters make it clear an ad is coming up.
A great reason to use sponsorblock, it shows the ad in clear green on the timebar and skips it automatically.
While I agree, I would rather that this video existed than not, and journalism is dying due to lack of funds, so I am okay if Vox needs to reach out to advertisers for money to produce videos and pay salaries. God know how many ppl have already been laid off.
Agreed, there should also be clear audible cues for those who are just listening in. Especially if the ad kinda relates to the topic of your video..
The video literally said PAUSE. What more do you want?
@@loucam08Because tapping a few times to skip is too hard for you? Or just inserting your own ad for your app while complaining about an ad?
Fantastic video, but the unintroduced financial ad in the middle felt a little sneaky.
This is why Sponsorblock exists
Absolutely. Super questionable
i thought it was part of the video, as a example of a scam. Lol
@@simon762321Hahaha, exactly. It seemed like an ad for a pay day loan company.
it’s rather weird to see Vox stoop to YT creator - type sponsorships
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
Thanks, I just googled her I'm really impressed with his credentials. I reached out to her since I need all the assistance I can get.
The placement of that ad made me feel like it was a terrible payday loan option. Would recommend placing relevant ads away from negative statements, or atleast giving a clear transition.
agree
what an insanely sus ad transition
Payday loans should be illegal
6:04
Payday loans above a 30% interest rate per year should be illegal.
Cap maximum rate AND total amount in relation to original loan amount.
@@McCRBen that's the same thing as making them illegal because no lender would lend at that APR due to the risk
@@SayAhh aka outlaw payday loans because the effect would be the same
The car was the actual trap
Highways, too, cause you get trapped in traffic.
Gotta love how the pixel artist clearly drew some sort of sports car - a nice-to-have type of car which will likely cost more to run than, say, a compact car. It's a sort of status-symbol that says "I have money to spare to spend on my car for fun".
Facts
Best part is the car spewing exhaust from the front of the car 😄
@@SkyGravity137 Thank henry ford.....
I remember the sheer relief I had when I got my first bonus at my new company in March. It was small since I started recently, but it meant I could finally cover an emergency expense.
One month later my car broke down. The cost? My bonus....
Yeah, owning a car is very expensive. Most jobs today don't pay enough to actually own and maintain one.
@@matthewdancz9152 doesn't help that infrastructure in the US is mostly car centric even in a lot of cities bar the obvious exceptions like NYC.
Happens to me all the time. Whenever I think: "Oh, finally saved some money up..." something breaks down or an unexpected invoice comes in. 😂
The bonus saved you from going into debt. That's a huge benefit.
@@orangeairsoft7292 and then the rent in those cities makes up for it
Not the point of the video, but this is a reason why car dependancy contributes to poverty
When you design your society so that everything is super far away, amenities are in a completely different area from houses, public transport is underfunded, and huge crisscrossing highways make walking impossible, you end up forcing people to own a car just to survive
This video could've been about any kind of expense, but my point still stands that poorer Americans would be less vulnerable to debt traps like this if they were allowed to limit major expenses, like car payments and repairs
Not to mention insurance
There's also an argument of time. We have cars in this day and age and roads to get to far away locations waaaay faster... what if we used dirt trails and horses still...
@@jchastain789 Or what if we had efficient, safe, affordable mass transit like high speed rail the way other developed countries do?
@eklectiktoni I could see realistically how that could work,, had the govt build rails instead of roads reaching every town in America...
@@eklectiktoni rails are also very limiting.. efficiency is key. What if you wanted to go to the top of a mountain and see the view? Rails couldn't reach as many places a car could.
My best friend from high school got hit with a double whammy a few years ago: medical debt and legal bills. Why? Husband got shot while doing a delivery and was falsely accused of being a thief. They’re working class in TX of all places and so borrowed money from me (after really struggling for a year) to pay off their debts. They profusely thanked me and are currently paying me back gradually, but it’s pretty obvious that they’d literally be on the streets and likely dead from exposure if I hadn’t stepped in. (Their car was compounded as crime scene evidence when her husband got charged and couldn’t afford the fees to get it out.)
America can do better than this.
I feel bad that 1/3 of people can't just pay for something that's $500. That makes me sad in a country with billionaires who could wipe their butts with $500. Also, I love the pixel art and video game style of this video.
You feel bad that they lack discipline? Not having an emergency fund is a lack of personal discipline and accountability.
@alexpieters1354 they will give you all the reasons in the world and blame the government for it, but they will never blame them self for they bad choices.
@@alexpieters1354they will give you all the reasons in the world and blame the government for it but they will never blame then self for all their bad choices.
@@alexpieters1354 Spoken like an ignorant clown. The majority of people who are bankrupt in this country had a serious medical circumstance, like an accident or an illness that wiped out all their savings. It's easy to spew baseless nonsense from your cushy little bubble, but maybe you should have a tiny clue as to what you're talking about first.
@@alexpieters1354 More like lack of good opportunities and money gives you exactly that
Please don't put ads in the middle of short videos. It's compromising the flow and watchability of your videos. It's very distracting. People shouldn't get an objectively worse experience just because a sponsor tells you to.
i know, right! Put the sponsor thing at the start or end of the video, not the middle.
also, i have a sponsorblock, so i didn't even see the ad. i only realized it was there when i went to the comments. ads are the devil! If ads weren't so bad, and could get you malware, or scam you, i wouldn't have an adblock or sponsorblock. it's getting ridiculous with this stuff!
I feel like DCU might not be an appropriate sponsor fit for this video. Whole thing feels like an ad now.
That's the feeling I'm left with. It's like we forgot to click "skip" and all watched the same TH-cam ad.
a credit union advertising to you is not a bad thing, they are a legitimate alternative that try to do everything they can to make loans easy to pay back. More people should use them.
@@billhicks8 Or save up so they dont have to borrow money at all.
Been saying this for a while! Poor people dont have the luxury of making better financial choices. For example: If youre struggling to pay necessities, you also probably cant pay for a bigger package that would last longer and saves money in the long run.
Truly poor, yes I agree. What I’m sick of is all the people who pretend to be poor because they don’t have the self discipline to save money and instead live paycheck to paycheck
If you're struggling for necessities then it's either time to downsize, find a new job or move.
People are quick to go into debt for a car or if a sudden expense comes up. Would make more sense to go into debt for a move to an area where you can come out positive after pay and bills come through.
Overdraft fees are scheduled to go down to $8 in the US as early as June 1st thanks to a new rule being pushed forward by the Consumer Financial Protection Bureau, so hopefully this video will be outdated in just over a month after being published.
I did not know this! Thanks for letting me know
Don't worry, with the wrong administration in the WH, it will be reversed. The poor who can benefiting from this still voting for the wrong people perplexes me to no end.
FYI - BIDEN is behind this, as well as the reduction/elimination of other "junk fees". Remember that when voting. Most people agree this is a very good thing and helps the poor and middle class the most.
Republicans have been trying to shut down the CFPB since its inception.
Joe Bidens America.
Stopped watching after that financial ad - pretty low
I like how nobody here knows what a credit union is, even while it's being explained to them.
USA is debt ridden country, so much problems around debts & loans, corporation lobbyists freely prey on citizens, student loans are huge & on top of all Americans are chronic buyers who love to spend what they don't have through credit cards & loans...
Tell me about it. Our credit score goes down when we don't borrow money🤦🤦🤦🤦
@@LeoOre2001 You're joking right? 😶
Asking money from those you know always has a cost. It may not be monetary though.
Imagine you didn't have to own a car to move efficiently around your city/country, and that you didn't have to pay exorbitant amounts of money for basic health care. How much would people save then?
Very little, because the increased taxes would offset the increased healthcare costs, and the company building the railway will probably charge only slightly less than cars cost so they can get their money back faster.
Although, there are buses available for shorter trips.
@@me-myself-i787 Canadian here (not even one of the best countries at implementing either of the mentioned things, by far)!
- People who make little enough money to have trouble saving pay relatively little or even no tax (yes, that’s counting all of the taxes)
- For a single person, monthly transit pass incl. light metro costs less than monthly gas alone, let alone car down payment, payments, maintenance, and insurance.
@@me-myself-i787 Just not true about "increased healthcare costs". The US already pays more per person for healthcare than any other industrialized nation. Besides the actual healthcare costs we also have to pay for the profit for the drug and medical companies. On top of that, we have to pay for the profit for the medical insurance companies. Why do you think the drug and medical companies spend billions on lobbying our government for favorable legislation every year? Railway passes in Europe are very affordable, that's why trains have such a high usage there. The facts just don't support your comment.
I learned first hand how terrible payday loans are when I was 19 years old, and I’ll never make that mistake again.
What started as $1000 ended up being almost $3200, and narrowly avoided losing my truck.
Luckily, I had someone to help bail me out of it, but a lot of people do not have that option or support.
I just wish that same support system had done more to educate me on the downfalls of credit/lending prior to that.
I have an emergency fund, but I'm also 46 and have things more together now than I did when I was younger. I had to rely on credit cards for unexpected expenses back then. Now I use a credit card for everything to get the points and I pay it off every month.
Same here. I feel like poor people are shamed for just not having enough funds. I have an emergency fund and pay off my credit cards every month, thus not paying interest. But it wasn’t that long ago that I didn’t have savings because there wasn’t any money to save and I used credit cards to cover expenses I didn’t have the money for.
as someone who has little to no knowledge about how all these work, this kind of video helps me a lot. the kind of things i wish taught in school
I'd pay with cash, but fixing my car has literally never cost only $500. Try multiplying that number by 3 or 4. Lol, it was going to cost $500 to fix my oven when it broke, and it would have cost the same just to buy a new oven (thankfully it was still in warranty).
I don’t know where you live or what type of car you have, but that sounds like way too much! Go to someone else.
@@orangebeagle3068 I drive an old vehicle. I know I pay a premium, but I'm happy with where I go.
2:39 i literally didn't realise this was an ad 😅
I hate to be the bearer of bad news, but sponsored videos have been around a long time.
@@CF-lw4zy Okay? Don't care didn't ask.
@@CF-lw4zy too bad you're the bearer of bad news , that how you spend your time in your mom's basement when you're not jerking off?
@@Sigma_Male_Anti_Female Kid, you're not even part of the conversation, why are you so mad? 😂
@@oyuyuy This is the Internet. You can join any conversation you want.
There's also the problem where people who are on SSI are not allowed to save more than 2000 at all without losing benefits unless they were disabled before the age of 26, and it creates a whole other problem that effectively forces credit card use, as payments and benefits hardly cover living expenses in much of the US
The problem is that instead of workers getting paid the majority of the profit it goes yo the CEO
Used to be they got 10 times their employees, now the average is 350 times
That's like saying, why pay my workers $30,000 and myself $300,000 (better than a surgeon) when i could pay them $15,000 and myself $5,000,000. After all they're working for minimum wage and I'm a millionaire so why not?
Another example is the Evil stepfather that planned out the entire vacation and then says because of that he doesn't have to do any of the setting up of the camp and gets to keep all the trinkets.
Everyone understands how unfair that is, but yet we call CEOs deserving of them deciding to have a larger slice of the pie every year because "THEY earned it" and not yhe workers
Surgeons make a lot more than that, the Glassdoor/BLS reports hide that. Most make 400k minimum, and the neurosurgeons my father works with make 1 million annually, and receive a 500k sign on bonus when hired.
@@nothere2994"erm, akshually..."
honestly, I'm impressed by how many lattes you can balance on your head for the c-suite
@@__-ln7sb Enjoy your shift at McDonald’s! :)
@@__-ln7sb When you look at the actual financials of companies, ceo salaries are really not that big of an issue. Worker pay is always the number 1 expense for every single company.
I'm favoured, Getting my own Truck has always been my Dream for my business. I just acquired 2 recently, earning $32K weekly has been really helpful. I can now give back to the locals in my community and also support Charity Organizations. I really appreciate your videos
As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
I'd really like to get into crypto Investing. I have about $145k set aside, but I don't know anything about this market. Would you please provide the best approach to make money as well as a trustworthy resource for advice? Your help would be greatly appreciated.
The very first time we tried, we invested $1000 and after a week, we received $7500. That really helps us a lot to pay up our bills.
Still regret that I sold my bitcoin early last year, even after my colleague insisted we shouldn't. Please Is Bitcoin still a safe buy to outperform the market this year? I still kept my money in the money market and with over $120k maturing soon, I plan investing well in it. Here for ideas
As a beginner investor, it's essential for you to have a mentor to keep you accountable. Myself, I'm guided by Deborah Davis. A widely known crypto consultant
I did payday loans yearssss ago and learned my lesson. Never again.
It’s good the way you explain how much more expensive credit cards are than agreed loans. The compound interest (interest paid on interest) is a thing that many people don’t understand
The stealth ad that Vox has been doing lately are dubious and speak to how little watch time people are actually giving. I would be curious what the difference in watch time is versus the actual total time and see if the total time minus the ad read equal average.
I recommend the SponsorBlock extension. It skips the ad and shows the actual video time minus the ad time. SO with that extension my "average time" is actually the time without the ad.
That's all videos on TH-cam, it's a graph sloping downward.
They need money, chill out
This is why having an emergency fund is so important
It is. It's just that it's difficult to have one when you have no money left after bills and cost of living expenses. Low income individuals tend to own older cars and large appliances, which break down more frequently. If you are low income and have a medical condition, but do not qualify for medical assistance, income after living expenses goes to deductibles, copays and coinsurance. I could keep going, but yeah, if you can afford to have an emergency fund you should definitely have one.
@@do.not.trust.squirrels If you don't have an emergency fund, then you're living beyond your means, and if you can't live within your means, what happens when your balance hits zero is not really the root of the problem.
As my boy Caleb hammer says: Not having an emergency is an emergency
$500 isnt even a fund. It's spare change
@@someshyv the recommendation is 3-6 months worth of expenses
I just don't get how politicians (in either party) can claim our economy is good when there are so many people facing such a precarious situation after just one emergency expense. Also, the stress from this can't be good for people's mental and physical health either.
I worry for the people for whom the very obvious integrated ad with a watermark was somehow something they didn't notice. Those people are probably the ones who the payday loan cabal are licking their lips at.
Well, that’s one way to earn $500
"earn" 🙄
So this is why I see great cars in the US on every video that shows a parking lot / city? I'm european and I'm amazed so many americans have expensive cars and when you look at them, they're clearly struggling. In my european country, if you can't afford an expensive car, you can't buy it / lease it, banks won't lend money either since they know you can't pay it. Then why do american banks borrow like 80k for a poor person to buy a car and knowing they won't be able to pay it? Makes no sense as an european
That is part of it. Americans legitimately do make more money, but you are correct that many borrow to live above our means. It's a cultural thing because we focus so much on status symbols like luxury cars.
That being said, the US also has millions of millionaires who don't do that. They drive that old 2016 Sonata and laugh their way to the bank. Essentially the US has set a trap for people to fall into poverty. The only way to avoid the trap is living below your means and saving the difference. Most Americans don't understand that though because of lack of education/social pressure.
Lack of public transport in the US means that its sometimes made owning a car for work nearly mandatory.
@@TheFireGiver Hey my 2016 sonata is not old, haha.
Lack of public transport and city designed for car (you absolutely cannot go anywhere within walking distance)
There's a huge difference between owning a ten thousand dollar car and a thousand dollar car.
Don't spend what you don't have
people should be able to use public transport in the first place
$1 DOLLAR expense, a coffee!!!! Hahahahahahahah
Seeing this makes me feel so relieved to have plenty savings in the bank. Debt of any kind scares me more than anything. Feels like a modern form of indentured servitude when lenders are allowed to charge ridiculous rates and trap people in poverty without consequences (the same way prison labor is essentially modern slavery).
as someone who's not from the US, this is terrifying to look at. like my country is also bad, but it's definitely not this bad.
Emergency funds are so important, I wish everyone understood this!
These are by far the best short educational videos on youtube, I especially love the animations.
Simple solution. Live in a country with good public transport, then you won't need a car in the first place
Even in car-centric places like Dubai and Doha it’s a huge savings to take its public transit. Gas might be cheap but valid insurance and the car itself not so much.
I'm not saying this to gloss over the other problems discussed in the video... but so many Americans needing cars they can't afford is a problem in it of itself. We need to start building good transportation infrastructure other than roads
Back when I was an addict, payday loans were my best friend lol
I think PayPal was the first to let me know that minimum payments didn't cover the interest. Always pay a little more than minimum when you can.
Actually this video does a really good job of telling me I should save up some money so I can start a Payday loan company....
Car repairs will cost you $5,000 not $500 this ain’t the 90’s.
false, my car that gets 40mpg cost only $5000 and there were plenty of options for much less, but since im frugal, im a minimalist, and i have a budget, i had $5k or more to spend. if your car is costing you 5k to fix, youve done something majorly wrong in buying an expensive car or you've had a catastrophic issue that costs more to fix than the car is worth. let me guess you have a $40-60k truck to impress randoms and you dont actually own a ranch or business that would require a truck?
One thing to mention about Credit Cards, many card companies, if you have a card already, will give you 0% interest periods. Discover, every time I have asked has given me 18 months of 0% apr. Different companies may not give you anything, but its definitely something to ask if something has happened in an emergency.
Its so important to have an emergency fund and a budget.
Overdrafts are a brilliant facility when used responsibly.. Mine is 0% interest up to a pretty high number. Can be a bit of a trap if used irresponsibly though.
I am in the UK though, overdrafts seem a lot friendlier over here. Even if I go over my arranged number I have a grace period before any fees are charged.
Most financial items are great if used responsibility and terrible if used incorrectly or coming from poverty or low income where paying down debt is difficult.
@@PSNDonutDudeabsolutely, I got trapped in my overdraft for a while after having to use it for an emergency. Spent ages getting out of it, put me in an odd space psychologically where I just gave up trying to fix my finances as it was there and cost me nothing. But equally saved the day when I needed it, wanted to cut it but just learned form the experience and build up an emergency fund (which is ultimately the only true answer to the question this video poses..)
In the UK too. I don't believe we get charged when we use overdraft do we? Been a while since I used it.
@@tpower1912depends on your terms. Varies bank to bank, it’s never a high amount though, I think there are laws in place surrounding overdraft fees.
Yes, if it’s an agreed overdraft before. The UK banking rules were changed for overdrafts a few years ago to stop extortionate overdraft fees (though banks then cut interest rates on current accounts and started to charge more for premium accounts to claw back their revenue from other streams!).
Great Topic, many people Badly in need of this guidance...
"Start an emergency fund"
Translation: "stop being poor"
I wouldn’t say that. Even at my lowest in terms of finances, I’d set aside $5-10 each paycheck. It would automatically go into savings so I wouldn’t see it in my checking. Even a very small amount is a bit less you’d have to borrow in an emergency.
@@ThatEllenGirl I'm not saying it's bad advice. But many people live paycheck to paycheck and constantly dip in the red, just covering basic needs. The math doesn't math. Your lowest might not be someone else's lowest.
Yes and no. I think the point is IF you can start one, don't procrastinate - DO IT TODAY. Obviously though, some people just can't.
$7.50 per hour × 40 hours per week × 4 weeks per month = $1,200 per month
Subtract $1,000 per month for expenses and you're left with $200 per month, so you'll have $1,000 saved within 5 months. And it will take you just under a year to save up enough to pay your deductible (assuming your deductible is $1,763, which is the average). If you put the money in the stock market, you'll save up the deductible even faster.
@me-myself Where I live (in a relatively moderate cost of living city in the southeastern US) rent alone is $1000. So you'd have $200 left to pay for electricity, water, food, medicine, gas/bus fare for work. Where's the leftover money?
Thanks, this is a great video. (And I love the video game-style animations!) I like how the video clearly explained these financial concepts that honestly... I didn't really understand before. I didn't learn these things in school. Hopefully schools today are teaching these things but I don't know. Everyone needs to learn these financial basics so they can be aware of the dangers of being poor and falling into debt. Once you're in a financial hole, it's hard to get out. The best thing you can do is borrow from family or friends, but that can potentially strain relationships. Still, it's the best option out of these. Selling something could work out well, but how long will it take to find a buyer and how much will they pay? So that can be tricky too.
My recommendation for people struggling financially is to start an online side hustle. There are plenty of ways to freelance online and it can be an additional source of income if your main one isn't enough. Freelancing online is not easy, trust me, but I'm saying that it can work if you do your research, put in a lot of effort, and stick to it consistently.
Even if you have the cash sitting in the bank, just put it on a credit card and pay it back later. Don't wait until your car breaks down to get a credit card. Get a secured card if you need to raise your credit score.
I would borrow directly from my 401k. Usually
There's gotta be a effective way to teach financial literacy in our society....
Under German law, an interest rate may be considered usurious if it is either double the market rate or exceeds the market rate by 12 percentage points. With a market rate of 6.5%, the usury threshold can be calculated in two ways: either double the market rate, yielding 13%, or adding 12 percentage points to the market rate, yielding 18.5%. The lower of these two values, 13%, is the maximum permissible interest rate before it is considered potentially usurious. If a loan agreement includes a usurious interest rate, it is deemed immoral ("sittenwidrig") and legally invalid.
2 things lifelong poor people have in common:
-- external locus of control
-- priority of subjective hapinness over objective success (competition-aversivity)
I have friends of the same age with the same socio-economic background and when I try to persuade them to be more career-oriented and competitive, all I hear is that this is not their priority. They are doing good (but can do better) financially, but they enjoy spending their free time on hobbies. And I just cant argue with this kind of answer. However, once they decide to start a family and enter middle age, I already imagine how their children will be envy of mine. Also, once I moved to the 1st world country for education, I usually hear how a lot of undergrads who was born here take gap year in their studies for "traveling" and it's considered normal. All I can say is that young generation getting more and more naive and self-indulgent.
Millenial from eastern europe here
This probably could have been just an image of a graph.
Moral of the story: Don't ask any financial institution for help, unless you know you can pay it off and earn credit.
john oliver did a great piece for this a while back
i needed this thanks
people complaining about a "stealth" ad. meanwhile the super obvious watermark & transition not to mention the end of the ad where it is like the most obvious thing ever. the only reason i did not notice is because i run sponsorblock and did not see it
This is why personal finance should be mandatory in high school
The first problem here is the car.
I understand things can get very tough for some people,that why when people come to borrow money from me,I usually it always give them the money 💰. But,there is a problem. I usually or never get that money back. For instance, someone borrowed $1000 from me and said will give 2 weeks after. Well,it's been 6 years and still waiting for it. Same for another $500 ,two $$300, a few $$100. Never get them back.
IMO the thing to take away from this video is, apply for a credit card before there's an emergency, and pay it off as quickly as you can.
$500? I use my credit card to get a percentage back and pay off the balance before finance charges kick in.
Like I do with 95% of my spending.
it's like we needed someone who could explain how predatory the concept of interest on credit is.
Maybe even a governance model which completely outlawed it.
Thank goodness you brought this up! Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!.
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
Do you mind sharing info on the adviser who
assisted you? I'm 39 now and would love to
grow my portfolio and plan my retirement
She’s OLIVIA SULLIVAN FINANCIALS
She's definitely going to help you. All you have to do is look up her full name and reach out to her
Getting Olivia Sullivan to help me really helped me clear all my debts. I started with what I have left and it's been the best decision I ever made
Can't believe loan sharks are much more ethical than going to the government for help
This is so informative thanks for sharing
I like the gaming sound fix and graphics (4th)
I'm at the point where I'm not borrowing bc its too expensive. Think about your future income
400% interest on a payday loan is nothing. In the uk I’ve seen interest rates of 3000%
Like how do u live if ya don’t got 500 bucks available to spend?
Da gubment
Take the bus, train, bike and walk until you save up the $500 if you don't have it
A lot of people can't get to their workplace with buses, trains, bikes, or walking. They have to have a car because there's no other way to get to work.
This video is for Americans, the way their cities were built requires cars
@@PrincessSachiko The vast majority of people can use these methods but never think about anything else besides the car. Most Americans have a car only brain
Suburbs yes, many band public transit
@@loucam08 America is all about car dependency unfortunately
@@PrincessSachiko The vast majority of people can use these methods but never think about it. Some suburbs with banned transit and rural areas are the issue
Americans are just car only people at heart
I was rear ended in recently which wiped out the $2000 I had set away for such a case. I’ve been looking for any basic retail job for more than a month now and haven’t heard back from anyone, and now I’m out of money. 2 days ago I suddenly needed to replace my spark plugs, coils, and an engine mount, which cost me 800 putting me $500 in credit debt. I also have $800 in taxes due in 2 weeks, and again, even Target turned me down with my Bachelors of Science. I’ve had to rely on my family who are not in a good position to take care of this right now, I don’t understand how people without my education and support network are supposed to survive if I can’t do it even with the resources I have.
What if you have money applied? Like in a savings accounts, national debt, gold, pension fund or others? What are the costs associated with those? And the risk? And how much you stand to lose in the long term if you rely on them? And how could taxes bring you extra expenses later in the year?
Love the 8 bit graphics
Never in my life have I encountered 12% interest. $565 on a $500 loan sounds great. Just never experienced it. People been paying off their student loans for 20 years and still owe ALL the principal. I suppose this is good info if you're 16 and in a universe that isn't here.
The video specifically mentions that few banks issue personal loans for just $500, the point was to illustrate if you *could* get a bank loan, it would likely be at 12%. 12% is a perfectly reasonable interest rate in this market, and would’ve been on the high side 2 years ago.
I’ve come to terms with my 401(k) loan being my “emergency fund”.
Then not solely relying on that being my only retirement plan.
Having other retirement plans like a roth ira, retiring at max social security age, HSA, paid off house, etc.
So glad to see my local payday business go out of business.
When you realize this video is a 6
min ad setup
I know this doesn't relate to the message of the video, but I'm super privileged to have the resources to fix my own cars. I've for sure saved over 15 maybe 20 thousand dollars in labor over only a few years. I implore people to do the same if they can :)
Something that’s not talked about is how credit cards are great if you can pay them back within them time frame. If you genuinely believe you can pay back the debt within your next pay check a credit card is great.
You forgot that in modern economies, one person's savings is another person's debt. So if you manage to save $500 in your emergency fund someone else out there is $500 in debt somewhere.
Not everyone has family or friends to ask for financial help or something to sell to get $500 either. I'm surprised this video didn't mention that.
It's terrible how some banks and businesses prey on people, poor people, and people who are not money savvy or don't have time or interest to.
0:15 “there are a lot of bigger picture reasons for that, but this video is going to look at something really specific.” This should be in the channel description. No shade, but worth pointing out because in my opinion this is the mindset difference between “effective” altruism strategies and those of solidarity, justice, and mutual aid.
Edit spelling
your video is what makes me understand the market more each day, and change from my emotion involved to be a signal and reason for point of entering than I was before thanks to you
1/3 of USA population don't have $500 at this moment. Good job
I save five percent of my take home pay in a separate account from my regular cash so I don't dip into it on a whim. It's like saving to give myself a loan later. This is in addition to having an appropriate emergency fund.
it's not a "string of bad luck", it's just the system chewing you out till you're dry. That's how it works, not how it works under mysterious circumstances such as luck or fate.
Or be NY where payday loans are illegal altogether
We live in a world where people buy what they cant afford out of pocket. This is what drove the prices up.
u forgot 1 more. earned wage access (or salary advance scheme)
Plan for unexpected expenses. Almost everyone can do that. Stop wasting money on frills if you aren't secure.
Wow I never new the way predatory payday loans worked but always heard about how terrible they were. I had gotten quite a few when I was younger and they were great. The last one I didn't pay on time and set owed for almost a year. I eventually went to pay it and it was still the original cost. Maybe I was lucky 😌. It was in California though so I'm sure there's some sort of regulation for it 😅.
I remember my mom always pawning things. Her jewelry. Electronics. One time she sold my school camera and said we lost it when we moved. We were always moving. Klarna and these pay in 4 are just as bad as payday loans