Ep. 27 - Credit Card Myths and How to Maximize the Benefits
We have just received some staggering data on consumer credit card debt, and we need to talk about it. In this episode, Daniel Halverson and I expose the current trends in credit card debt and how the domino effect took place. We’ll discuss the difference between revolving debt (credit cards) and term debt (closed-end debt), and how behavior has changed regarding spending and saving money due to the pandemic and dispel some wide-spread myths about credit cards. And of course, it wouldn’t be What’s Your 1 More without unpacking how to capitalize on the benefits credit cards can present you with.
Dive right in and get some actionable plans for both facing credit card debt and maximizing the benefits of credit.
[00:01 - 07:51] America is reaching historic levels of credit card debt: examining the impact of Covid, Federal Reserve rates, and changing spending habits
[07:52 - 12:53] The reality is, with 53% of Americans not paying off monthly and highest interest rates in 20 years, people aren’t treating debt correctly
[12:54 - 17:34] How to get out of credit card debt by understanding the daily-periodic compounding interest rate
[17:35 - 28:26] Win the credit card battle by fighting with refinancing and the 3 (maybe 4) reasons to have credit card in the first place
[28:27 - 35:47] Exposing the “buy-now-pay-later” monster and ways taking control of your financial situation to build a fresh start
Quotes:
“Credit cards also have this disguise like a casino. Those weren't built so everyone can win. They weren't built on everyone's winnings; they were built on everyone's losses. These credit cards [are] huge machines." - Quinton Harris
“It doesn't matter if you have $1,000 in credit card debt or a $100.000 in credit card debt, if you're not paying it off monthly, you're in debt.” - Quinton Harris
“Have a real conversation with the credit card company about what's going on in your life. You would be surprised at what they would do to make that work for you, because at the end of the day, they know that you don't have to pay them back.” - Quinton Harris
Resources Mentioned:
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