The Dangers Of Credit Card Debt | Dana Learns Episode 37 - video Dailymotion

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Dana B | Dana Learns

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00:00Well, Mr. Beers.

00:01What's up, brother?

00:02Happy holidays.

00:04Thank you to you, yes.

00:06I'm going to say Merry Christmas.

00:07Yeah.

00:08I'm just going to go ahead and say it.

00:09I'm not Jewish or a Kwanzud.

00:12Even if you were, I'd still say it.

00:15I'm struggling, Francis.

00:17Yeah, what's going on here?

00:18I just got off an airplane and I can't...

00:19I don't know my volume right now.

00:21I don't know if I'm too loud.

00:23I don't know if I'm normal.

00:24I can barely hear you.

00:26I'm struggling.

00:27What's your technique for...

00:28It's your ears.

00:29Yeah.

00:30How do you do that?

00:30Yeah.

00:31How do I do it?

00:33Oh, you do that?

00:35I'm just fucked.

00:36I'm fucked.

00:37We're wearing our beautiful Nautica threads.

00:39And I got to say, I'm feeling pretty festive and cozy.

00:44It's raining out right now.

00:45I could go outside without a problem in the world.

00:49With this sucker on.

00:51Correct.

00:52Shop for all your holiday gifts at the Nautica gift guide on nautica.com.

00:56You can buy some of those gifts with a credit card.

01:00But beware, credit cards are a slippery slope.

01:03Don't I know it.

01:04How much debt do you have on your credit card?

01:07Have you been paying it down?

01:09I kind of just do my own thing.

01:11What a wonderfully sound financial plan.

01:14Do you have any idea what your interest payment is on that?

01:19What your percentage?

01:20Your APR?

01:21No.

01:22It is the interest percentage that you will pay on balances you carry forward month to month.

01:28Okay.

01:29The average annual percentage rate for most credit cards, the average, is I think it's 24.43%.

01:39That's just $$$$ a month that you are having to spend as a result of having spent money.

01:47I'm okay with that.

01:49No, you shouldn't be.

01:50I'm fine with that.

01:51There's no reason that that should exist in your life, that tax.

01:56And by the way, if you're not paying off that amount and your balance is going up, that number keeps getting bigger and bigger.

02:04It's called compounding.

02:05Yeah, but I see that number and I don't get worried.

02:09Imagine if you parked your car in a place where you knew you were going to get parking tickets.

02:20I've done it several times.

02:22Yeah, and you just left it there because you said, I don't really mind paying these parking tickets.

02:31But there was a way to park your car in a place nearby that still costs a little bit of money, but you were never going to get parking tickets.

02:41Yeah, I mean when you put it that way.

02:43Can I tell you why I don't mind that much?

02:46Why?

02:47I think I'm going to get rich someday.

02:49This is so fucking frustrating.

02:51Even if you are, you still shouldn't be okay with this.

02:55If you were to go to a bank and take out a loan on which you would have to pay interest payments and debt,

03:02right now, the Fed has interest rates for central banks set at...

03:1113.

03:12No, I think it's like 5%.

03:14Oh!

03:15Why don't I just do that?

03:18Well, there you go.

03:19I would do that.

03:20You can borrow money much more cheaply if you don't do it through your credit card.

03:25But I don't get SkyMiles that way.

03:29I can't take a trip to Scottsdale to see Papa Beers and play some golf off miles.

03:34That's how they seduce you.

03:36What about like a backup quarterback jersey?

03:39Is that worth it?

03:41If it brings me happiness?

03:43I'm not telling you not to buy a backup quarterback jersey.

03:46But I would say that if the choice is between that and putting that money towards paying down your credit card balance,

03:53I know where I would be putting that.

03:55If I were to look through your spending and ask you,

03:59What's that?

04:00You want me to pull some off?

04:01There would be a few things in there that I'd say,

04:03Really?

04:04You're not going to be happy with me.

04:05Well...

04:10Yeah.

04:12Ha ha ha ha ha.

04:14Ah.

04:15Nine bucks at the car wash.

04:17That's fine.

04:18That ain't bad.

04:19Don't mind that.

04:20You know what?

04:21I have a little chip on my shoulder.

04:22I'm like, I used to deliver pizzas when I was 24 years old.

04:25I got money now.

04:26I like fucking around a little bit.

04:28You don't have money now.

04:30You have no money.

04:32You have negative f***ing dollars.

04:35No, but then I have a 401k, which cancels that out.

04:38Can't touch that until you're 59 and a half.

04:40Yeah, but it's technically unprofitable.

04:44Each month, you are paying money on the money you owe.

04:48Yeah.

04:49And that doesn't necessarily need to happen if you can get back to level,

04:54and then force yourself to pay off your balance each month.

04:59I would love to, Francis.

05:01You just told me you have money, and you have a chip on your shoulder.

05:05I do.

05:06So now you're playing both sides.

05:08It's okay.

05:09I think.

05:10If you can start actually chipping away and get through this,

05:14you'll feel good about yourself.

05:16What about a credit score?

05:17What's going on with that?

05:18Credit score is affected by debt, as well as a number of other factors.

05:24Credit score people, don't they want you to be in debt?

05:26I don't know.

05:27I don't know that they do.

05:28Yes, they do.

05:29They do.

05:30Why?

05:31That's what they say.

05:32That's what people say.

05:33Really?

05:34I don't know.

05:35Why would a credit score company benefit from you being in debt?

05:37I don't know.

05:38That's just what I've heard.

05:39I don't know enough to disagree with you on that.

05:41I'm right.

05:42If you get to a point where you say, you know what?

05:44I've been really good.

05:45I've been paying off my credit cards.

05:47I deserve a treat.

05:49Let's go to Barbuda.

05:51Aruba.

05:52Sure.

05:53Very similar.

05:54There was a lady in Aruba once.

05:55Made the best carbonara I've ever had, just on the beach.

05:59You've been thinking about it ever since.

06:00Oh my God.

06:01All I want to do is go back to Aruba and eat that carbonara.

06:03That is the reward for when you fully pay off your credit cards.

06:07But then don't I just have another debt?

06:11I would tell you to use your credit card points that you get from paying this off to buy your

06:16flights, maybe your hotels, and try to do it within your means.

06:20Fair.

06:21All right.

06:22Yeah, fair.

06:23Thank you, Francis.

06:24Good luck.

06:25Appreciate it.

06:26And thank you to Nautica.

06:27Visit Nautica.com to purchase all your holiday gifts.

The Dangers Of Credit Card Debt | Dana Learns Episode 37

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