Credit Card Debt Explained With a Glass of Water Video

http://www.totaldebtrelief.net uses a pitcher and a glass of water demonstrate the effects of minimum credit card payments. This video uses a simple analogy to describe how the average American is throwing away their money to the credit card companies. Visit totaldebtrelief.net for more information on credit card debt relief.

I meant since when ...
I meant since when does interest get accrued monthly at the full APR. it can get? accrued daily, but it would be 17%/365 days.

I'm debt free. I ...
I'm debt free. I used to sell credit cards for years in person? and telemarketing. With a $146 payment at 17% APR it would only take between 21 and 22 years. Since when does interest get accrued monthly? The 17% in this video monthly would be 204% APR which is illegal by credit card laws. Change the video to a pay day lender or loan shark. P.S. Screw debt!!!

@Rezxer I assumed ...
@Rezxer I assumed the contract was 17% interest a year because that's how banks advertise their loans, with yearly interest not monthly interest. Just shows how banks like to scam you by confusing you. Still, they should advertise monthly interest rates if they are? going to charge it monthly. Thanks for pointing that out.

@Rezxer I ran? out ...
@Rezxer I ran? out of space in my previous comment, but one thing about the compounding. Some CCs compound monthly, but it should be noted that many CCs compound *daily*, which makes the problem a lot worse.

@agun17 This isn't ...
@agun17 This isn't accurate either. Interest compounds monthly, not annually. Your formula subtracts (142 * 12) from the principal of $10K, then it calculates (0.17) from the resulting principal, which isn't accurate. After a year of $142 payments and monthly compounding interest, the? total principal should be $9,996.06. Yes, only $4 less than the starting principal. 17% APR equals to 0.01416666667% monthly, which is $141.67 monthly interest, so your effectively only paying $0.33 per month.

If you can ignore ...
If you can ignore the debt collectors, after seven years in Canada, your ? debt is erased

@sakemek yea it ...
@sakemek yea it should be per year. The video needs a? correction

Is it really the ...
Is it really the interest rate 17%? per month?

Is it really? the ...
Is it really? the interest rate 17% per month?

The road to ...
The road to bankruptcy is paved with plastic.Althou some bankruptcies were? due to high medical expenses and downsizing,a great many had to do with credit-card debt.Card issuers encourage their consumers to go into debt with incentives like frequent-flier miles,cash back and low introductry interest rates."We're finding a lot of people are living off their credit cards,and they're even making their credit-card payments with a credit card,"says executive director of CCCS.

I'll never have? a ...
I'll never have? a credit card!

I have a big debt ...
I have a big debt with this CC... its kinda screwing me up! I need to pay it off ASAP... so I hope like in a year I? can be free of debt... xDD

Please checkout my ...
Please checkout my channel to find out? how Credit Rating works and how to improve it

The owner? of ...
The owner? of Citibank once said "the best way to manage a credit card is not having it" I agree

Don't let the ...
Don't let the financial crisis bring you down. I started working from home and I'm now making 200 dollars a day... Don't be the victim, create your own luck! It's really worth checking? out the website below, this guy is amazing... Go to 2012bestoffers(.)com & Click the guy in front of the lamborghini's... Enjoy life!

thats right i pay ...
thats right i pay off my credit card, make pyaments up to 1000 up to? month

Credit was never ...
Credit was never thought up in order to screw people over... it's the people who are screwing themselves over by not earning enough for the debt they have! If you use credit properly, it's extremely useful.. and the idea is nothing is for free.. the banks have to make some money somewhere along the line... hence the interest! If you can't afford the interest, don't use credit... be patient and? save instead.

Several years ago I ...
Several years ago I had about $15,000 in CC debt. One day I got in the mail an offer for a new CC with the enticement of 0% interest to rollover any unpaid balance on other? CCs. I jumped at it. After a year the interest rate reset up to 9% but low and behold I got another 0% offer from another CC company and jumped on that one. Same deal after 1 year it was about to reset to 9% and you guessed it I got another 0% offer. It took about 3 years but I paid it all off with almost no interest.

@mycesi Credit card ...
@mycesi Credit card debt has been deceptively sold? as a clever tool for debt enslavement. The CC companies favorite customers are those that can't afford to make regular monthly payments and will get wrapped up on fees forever... legal fees, late fees, missed payment fees, ridiculous interest rates that COMPOUND monthly. Albert Einstein allegedly once declared compound interest to be THE most powerful force in the universe... think that one over. Stop paying all of it. They are crooks

@TheMEK3 You? are ...
@TheMEK3 You? are pathetic.

@agun17 This is ...
@agun17 This is obviously way above your comprehension. You do you and I'll do me. ? Fair enough Sitting Bull?

@TheMEK3 * ...
@TheMEK3 *facepalm* Not all exponential functions are in base e. Ever heard of exponential growth? No, of course you haven't or you wouldn't have said? such ludicrous statement.

@agun17 Okay. But ...
@agun17 Okay. But are you aware that if this was an exponential function then we would be working with "e"? There is no "e". Again, this is simple algebra. When you have a credit card and? you do charge $10,000 you are suppose to pay if off before the next billing cycle in order to avoid any interest charges. In the example, we only paid the minimum balance of $142 which means that we didn't pay it off in the full month. Maybe you should understand the difference between the two.

@TheMEK3 This is ...
@TheMEK3 This is an exponential function. The first month you will lower your debt by a lower amount than the 12th month thus you can't simply assume the amount by which you've lowered your debt in the first month will be the same for the 12th month. The average monthly amount by which you lower your debt in the first year is $24.5 using the example in this video. Please understand the difference between an exponential equation and a linear one before attempting to? correct me.

@agun17 Your math ...
@agun17 Your math is way off!? This is simple algebra. 10,000 - 142 = 9,858 9,858 * 17% * 1 / 12 = 140 9,858 + 140 = 9,998 Whatever you did is calculus.

...and they "Loaned ...
...and they "Loaned" you "Money" that never existed before you borrowed it... ...Banking is the Best Racket !... ...the flip side is that ALL "Money" is brought into circulation as? a Debt and if no one borrowed any money there would be less and less in circulation... that leads to Inflation...

This is an example ...
This is an example of how credit companies will mislead you as in this video they make you believe you are being charged 17% monthly and yet you are? only being charged 17% yearly. #fail

this is a? ...
this is a? brilliant video

@agun17 I figured ...
@agun17 I figured the calculations to be a little off in the video. However, the? point is still there. I would be many years to pay off a credit card if you only pay the minimum payments.

The people that " ...
The people that "Thumbed up" this video sure no about maths? ...