25 Minutes of INSANE Credit Card Debt in 2024...

I have $47,000 worth of credit card debt. Yeah, man, you're close to a little over $200,000 in negative equity, bro. I owe TJ Maxx $9,562.30. Okay, so we are back. I have another debt video for you guys. I have a lot of examples. I don't even know if I'm going to go through them all today. But somehow with the data coming out, that consumer spending is still on the rise, even though a lot of people are hurting. More projections of Black Friday doing better than it's ever done before. And the constant barrage of advertisements all over social media, it seems like a lot of people are paying with their credit cards. And because of that, there's been a snowball effect with a lot of people and have put themselves into a lot of debt for many different reasons. So we're going to go over it along with some of your comments from the previous video. So if you want to be featured on a future video, leave it in the comments down below. But we're going to start off with a big one. I owe TJ Maxx $9,562.30. And I'm trying to pay off my Affirm McLaren loans. So as you can see, it's $9,562.30 that I owe. Now you are seeing a overlimit because this account is closed. It's in hardship. It is officially on 0% for 60 months. If I only made the minimum payment, which was a little over $300 a month, $250 if I wasn't paying a late fee that month, was 22 years. And it would total $32,199 with an interest rate on purchases of 32.24%. OK, so this person we've seen on the channel before, there's a lot that goes into it. She's in over six figures worth of debt for many different reasons. We saw payday loans. We saw gambling. But I thought that this clip was interesting because of almost $10,000 on a TJ Maxx credit card. Now, I don't think that means that she walked into TJ Maxx and spent $10,000 in the store. But you've probably seen in a lot of retail stores that say, if you go into Best Buy, you buy a couple of things that are pretty expensive. They'll try to push you and you get 10% off if you get the Best Buy credit card. And then you'll get extra points if you buy more stuff, a lot of incentives to keep coming back to the store and using their credit card. And this is what might have happened in this situation and just snowballed into something much greater. TJ Maxx, Marshalls, Jones. There's other ones that I'm forgetting, but they're all discount retail stores that buy their items in wholesale from other places, maybe the manufacturer or other retail stores. And because of that, people will see that they'll get deals on certain items. But at least with my experience, there's a lot of low quality items in those stores. But it doesn't matter if it's on sale. If you end up buying more than you should, you're going to start racking up the same amount of debt as if you went to Target and got the same item. So they really try to persuade you getting that initial percentage off of whatever you bought in the store just because you signed up for the credit card. But it could possibly become just as bad as this situation with 32% interest. That's rough. Now, this woman is one of many who are talking about their debt on TikTok. I've seen trying to pay it off. And this kind of links up with the first comment from you guys because she's showing exactly what she's trying to pay off, even with how crazy some of these loan amounts are. But we have a comment from one of you guys. My conspiracy theory time. I looked up that Lana chick, which was another user showing her, I believe, $40,000 worth of debt at the time. But she apparently has a background in loan management. I wonder if she's making up all this stuff about debt and bankruptcy and funneling those that reach out into taking out loans. So I'm not saying this is true. This is just a comment from one of you guys. But we did look into that user. It's much different than the clip I just showed you. She went back and forth several times and being into tons of debt. And now recently she's filed for bankruptcy. And she has links in the description about consultations and filing for bankruptcy. And it kind of rubs me the wrong way because a majority of her viewers are in the same situation. That's why she's getting an audience. Seems kind of weird that there might be a kickback situation. There was a conspiracy from one of you guys. I'm not saying that any of it's true. But if you are looking at somebody online for help with your debt, I would just be a little bit more careful on who I would watch. We're going to go into the next common one. This one's just crazy. The guy's reaction is just perfect for how much money has just disappeared. Jason, this is Alex with Earth Motor Cars. Giving you a call about your 21 SF90 you have for sale? Yes, sir. Yeah, I'm trying to get rid of this car and I want to trade it. What are you interested in trading it for? It's the black Corvette Stingray C8. I think it's the 21, yeah. Okay. And you have a Ferrari SF90 for trade? Yeah, I do, man. Yeah, that's the car that I want to kind of get out of now, so. Okay. I just want to get as close to my payoff as possible, or if not all of it. Okay. Still do owe a reasonable amount on the car, so. Okay, well how much do you owe on it? A little under $700,000. How much? About $690,000 something. Oh, man. Yeah, I bought the car for $770,000 in 2021. I'm going to be honest with you, man. My number is probably going to start with a four. So you're saying $400,000 is what I'd give for the car? No, I'd give you more than $400,000, but my number would start with a four. Oh, my God. Yeah, man. You're close to a little over $200,000 in negative equity, bro. Now, I know that this is a situation that not many of us will ever be in. But imagine instantly knowing that you have lost $200,000 on your car. Now, I do get it. It's a Ferrari. This guy clearly makes money. But it's not just the normal middle-class videos we've seen where people roll negative equity into brand new Jeeps over and over again because they want the newest thing. But still, I would say $200,000 in the hole for the vehicle is a pretty rough situation. But we have another comment from one of you guys. So right about the difference between men and women debt accumulation strategies, which what I said in the last video is that men will instantly go into $50,000 worth of debt because they'll get a car, probably not a Ferrari SF90, something much cheaper, but they'll go from zero to 100 immediately. And a lot of women will end up doing these small incremental purchases where they're getting something online slowly over and over and over again, and it starts building up. However, if you look at it from a different angle, both are still doing the same thing. Men are buying things that they can't afford to keep up with other men who have those things, like the vehicles. And women are buying lots of things they can't afford to keep up with other women who have those things, which we've seen in a lot of these smaller products, especially the influencers. We've gone into depth a couple times with videos on this channel where the amount of advertising and marketing towards women for a lot of those beauty type of products, smaller, cheaper items compared to like a car or something like that is unbelievable. If you watch a couple of those TikToks, your feed is just filled with it. And especially with the rise in buy now, pay later, I think it's a good transition for this clip. You go on TikTok and you realize your life really ain't that bad. There's this lady that said her Clorida payments are $1,200 a month. What is that? Like what? And this is exactly how those companies make their money, $1,200 a month because they got behind on the incremental payments. And people will still constantly talk about and almost defend buying it. We've seen clips on TikTok talking about that. It's a very dangerous road to go. I think initially for however many payments it is, there isn't any interest. But if you miss one of them, it immediately starts getting bad. And then it'll just be another snowball effect. And then I guess turn into $1,200 a month in clarinet payments, which would be a majority of it just interest. I'm thinking of the next clip. I wonder if buy now, pay later works with concert tickets with how expensive that has become. Maybe that could be another avenue for a solid amount of money for these companies. I don't know if it actually works, but we do have a comment from one of you guys. I truly do not understand the Taylor Swift ticket thing, which was somebody who went into debt for a Taylor Swift concert. I think it was like $5,600 for the ticket. Even if she gave herself a year to pay it off, just the tickets, that's $450 a month plus interest to have a single night out. And I think this does branch off into these super fans and a lot of different niches who will just pay for absolutely anything that a single person or a band or maybe an entire brand will do. $25 for a holiday ornament that I guarantee you costs $2 to make. $30 for a journal. Come on. And $35 for a coffee cup. That's ridiculous. We have some comments from this video. Her merch is getting so expensive. Since when are hoodies over $75? I almost checked out, but I was like, this is irresponsible. I don't think a lot of people honestly think that way. $50 for a tote bag, $30 for a compact mirror. And basically because it's Taylor Swift, there are so many super fans that will do anything and spend hundreds of dollars on just low quality merchandise or really anything from her enough to spend over $5,000 for a ticket. And the excuse is just for the experience. But just another way for you to get yourself into tons of debt. What I've learned is people are more afraid of student loan debt than they are of credit card debt. Because I just posted a video talking about how I have $280,000 worth of student loan debt. And it was meant to be funny and really meant to point out the student debt crisis in the United States. But people started commenting things like, this is why I didn't go to school, the debt isn't worth it. And that was not the point of the video. And I just want to say student debt is one of the most worthwhile debts to get into to get an education, to be able to be a high earner in the future and actually pay off that debt. I see a lot of people who don't go to school because they're afraid of debt and then end up in debt and credit card debt trying to afford day-to-day bills. So don't let debt be the reason that you don't go to school because it'll be worth it in the end. And it's way better than struggling to pay things day-to-day because you don't have a high earning job because you didn't get an education. So I thought this clip was interesting because recently I have just seen the complete opposite of that. Now she thinks this way because she's in med school. Basically, if you're not in some sort of STEM field, it really doesn't seem to be worth it anymore. There are many clips on TikTok and the memes and relatable posts of everybody choosing majors and realizing that there are no jobs and they just wasted tons of money and possibly six figures in a debt for a job that pays basically the same as Amazon or Walmart because there was a flood of everybody becoming a business major because that was the next cool thing. Then a whole bunch of people wanted to be CS majors and now there are hundreds if not thousands of people applying for one single job. So yeah, if you're going to be a lawyer or a doctor or that level career, then clearly college is the way to go, even with the 300,000 plus worth of debt in the end. So in the same argument, let's take everybody who's going to college and they all want to become doctors and all want to become lawyers. Then that market will also get flooded as well and it wouldn't be worth going into hundreds of thousands of dollars worth of debt. I think more people are realizing if you want to make a good amount of money in a career that isn't that high level postgrad, med school, crazy debt type of level, you can most likely make it in the trades and don't have to put five, six figures of debt in front of you right out of the gate. We have another comment from one of you guys. The most debt I've ever had was $85,000 in student loans. Lived with roommates, rarely ate out, didn't go on trips until it was paid off. And we have another one. I will never complain about my student loan debt again. Some of these people make my $25k look like chump change. Same thing with me. I think in the end, I had about $21k or $22k and I just paid that off completely. Yeah, it does suck to not have that money in the bank account, but compared to other people now, $20k seems like nothing. When you get out of debt, I'm just letting you know right now, it shows. That same part of you that kind of liked being able to show off with the money and the pool and doing all those things, that same part of you that liked showing that, that's going to be the part that hurts the most when you show the opposite, which is we're downsizing our cars and we're downsizing and we're selling things and we don't go out as much and I don't buy the things that I used to buy. Your family's going to see it. Your friends are going to see it. You're going to feel it. And that's just part of the process. Don't let that deter you. That's how you know it's working. That's how you know the medicine's getting it. And I do think that deters a lot of people when you start seeing the relatable post of people just getting into deeper and deeper debt because they don't want to actually show their friends and family that they're not living the lavish IG lifestyle like they're some sort of influencer, even though they have a normal job. But they're going on several vacations a year. They have a brand new SUV. They have a YSL bag or a Burberry coat. Really nice shoes. They go out to eat all the time when they honestly don't make that kind of money, but they still want to keep up the charade. And it starts racking up the five figures and six figures worth of debt. It gets unimaginable at some points. If you just read the text of the clips that I had over on my way to court because buying a $4,000 bed when I was 20 and stopped paying it halfway through. Now I'm going to jail. But quick fit check. Ha ha. It's funny. But when I booked another trip using my credit card, now I'm back in debt. But at least I have a trip coming up. We've seen that a ton of times, especially on Caleb Hammer's channel. People have absolutely no money. And to relieve the stress, they swipe their credit card and go to like the Caribbean or something like that for a few extra thousand dollars and literally just makes the problem worse. I just don't understand how people don't realize it. But the comments just reassure it and make it like it's OK. Everybody's doing the same thing. Girl, so many of us can relate. Travel is life. Travel will forever be my girl. Like, come on, man. Another $133 of bullpen. It's food. But yeah, I don't cook. We've been through this. It's food. But it is the bull version because that $800 or so that you have spent total across that could be $250 in groceries. So it is still bull. We do not need to go through this again, do we? You understand that. How are you still there two years in? Because if I don't spend that money, you want me to starve to death? Like, what is your point? We're saying it's either way. You genuinely believe that? What do you want me to do? Like, I'm not. Do you know grocery stores exist? I saw you go into Central Market. You only spent $10 there. But you could spend $250 on groceries to accomplish that. So how is the alternative to eating out starving when groceries exist? Because you're saying I could either get groceries or whatnot, buy fast food? Yes. What? Well, I mean, I could do that. What do you want me to say? I don't know. It was the fact that you said I have to eat. It's like, no. Now, these are the type of clips where people are so stuck in their ways that it's almost a lost hope. Now, I'm not telling you that I'm some sort of chef. All right, quite the opposite. But I definitely don't go out all the time because I'm not good at cooking. I know that it would still be way more expensive for me to go over to Chick-fil-A or whatever compared to going to the grocery store and making my own food. But people will just get so hardheaded that, you know, I don't know how to cook or I'm not good at cooking. So the only thing that I could do is eat out twice a day, every single day. And then they wonder why they're in debt. We have some comments from this video. YouTube cooking tutorials are free. Just learn tacos and spaghetti and you can go for days. Cooking for yourself is a life skill. So, I mean, I try to make these videos showing extreme situations that people are in to deter others or help them to get out of debt and motivate them to not see what they're seeing on the screen right now. But some people you really just can't help. And we have a comment from one of you guys. I will never forget the couple who came into the dealer I worked at trying to buy a brand new Rubicon Wrangler just to be turned down because they filed bankruptcy last month. And what that shows to me is that they just hit the bankruptcy button so they were able to reset and they didn't learn anything about the amount of debt that they were in. They immediately wanted to go buy a brand new Rubicon, even though I wasn't even in the question at the time. But there are no lessons learned for that type of couple. Even with the years worth of bankruptcy, they're just going to start racking up the debt again, doing the exact same thing they did the last time. And it's just a cycle for the rest of their lives. Now we have another dealer video, but these are too good to not put in just to show the amount of money you can lose on a vehicle, even if you are in different times of your life. You know, you live in the high life. You're making a whole bunch of money. Maybe it's not going to be around forever. Times will change. There's a downturn in the market. Maybe you get fired and you have a lot of issues like this. So I bought three vehicles in 2020, from 2020 to about 2022. I have a 2019 Lamborghini Urus. It has about 70,000 miles on it, and I paid around $235,000 for that. I also have a Hummer EV, and that has about 36,000 miles on it. I paid right around $175,000 for that. My 2021 G-Wagon, I got for, I think it was about $210,000, and that has about 69,000 miles on it. Right now, I make between $30,000 and $40,000 a month. Let's go through it. So the Lamborghini Urus that you paid $235,000, and right now you have 70,000 miles, sorry. You owe about $190,000 left? Yeah. All right. Hummer EV. Did you see my other Hummer video with the guy that was like $100,000 upside down? Yeah, that was, yeah, yeah. All right. $148,000 on the Hummer, and then you have about $180,000 left on the G-Wagon, correct? Correct, correct. Over half a million dollars just in auto loans. Yeah. Now my credit's dropped. I'm around about $630,000 now, and yeah, things aren't what they were on that bottom. Okay. $630,000 credit score. How much do you have down to put towards the negative equity for these cars? Maybe between $5,000 and $6,000, maybe $7,000 if I really manage a few things a bit differently. Okay. And you said you made $30,000 to $40,000 a month. So on the Lamborghini, I'd give you about $130,000. On the Hummer, I'm going to be right around $80,000 for the Hummer. I'm going to be right around like $98,000 to $99,000 for the G-Wagon. So you are over $200,000 in negative equity. I'm going to be real with you. There's nothing I can do for you. You got $5,000 to $6,000 down, $630,000 credit score. So this is actually probably a little bit more extreme than the Ferrari clip earlier in the video, because this is somebody who is definitely making tons of money during COVID, whatever they were doing. I don't know if it was stock market or properties, whatever. And they ended up buying three high-end vehicles. But surprise, surprise. It's not like it's always going to be that good. And even with making apparently $30,000 to $40,000 a month. So that's $360,000 to almost half a million dollars a year. He was upside down so badly on all of the cars. He was going to lose over $200,000 selling them off. Like he said, things weren't what they used to. $630,000 credit score. Something went wrong, pretty wrong. And now he's going to lose a whole bunch of money on really expensive vehicles. And I don't know how much he was making when he bought all of them, but even at a half a million dollars a year, which would be still upper class, seems a little too much to have a Hummer EV, a G-Wagon, and a Lamborghini in your fleet of vehicles, along with having only $6,000 or $7,000 to go into the cars. Negative equity. It seems like a shady situation with the $30,000 or $40,000 he's apparently making, or just that's how much his bills cost for everything in his life. We have another comment from one of you guys. Hard to believe, but it's actually true that between 86% to 93% of all cars you see on the road have a note attached to it, and less than 15% of Americans actually own a fully paid-off car. I really, I believe that. It's even confirmed on most YouTube videos where you see people at car auctions, and 99% of the cars are luxury brand, high-end sports cars. Top-notch EVs are some expensive gas guzzler. We've seen that too with the Repo videos, because I think marketing from these manufacturers have done so well that as soon as you're done paying off your vehicle that's taken you four, five, six, seven years, the brand new model comes out, and it's way cooler than whatever you have, and they immediately go back into car payments. I have $47,000 worth of credit card debt, and I recently shared how much was on each card and what the minimum payments are, but I keep getting asked what the interest rate is on each card, so let's go through them. Keep in mind, for all of the screenshots that I'm going to be showing, I'm going to be using the original ones from back last month when I originally shared them, because I'm going to be doing an updated balance this month, and I don't want to spoil it for you guys. So let's get started with the interest rates. This card has a 28.24% interest rate. This one has 28.15%. This one is at 27.24%. Topping it off at 29.99%, 20.74%, 27.74%, 18.99%, and on the totally opposite end of the spectrum, we have 12.99%. So with the credit cards, I mean, if you also want to compare it to car payments, people lose their minds, rightfully so, honestly, when you see a 10% interest rate or higher on any of these car payments with really expensive vehicles with people who probably shouldn't really afford them. So take that number and bring it over to the credit cards that are around 30%, some of them. Could you imagine if there was 30% interest on your car payments? It would be ungodly amounts of money, but that's how dangerous a lot of these credit cards are. I think most of mine are at around 20%, 25%. It's not like really any credit cards have low interest rates, but people don't honestly realize this. I mean, another one of the comments from you guys, you should do a video on how aggressive credit card advertising is, and that's something they don't want to show you. They want to show you how easy it is to go on vacation or buy all these new items that maybe they're on sale so you could buy even more. Don't look at the almost 25% to 30% interest rate if you can't afford or max out these cards that we're giving you that potentially have way more money than you do in your bank account. But I mean, this is how the credit card companies make their money, and that's why they have all of these, you know, 2% cash back on everything. You know, this merchandise or the gas or restaurants have 5% cash back. They could give those offers out because there are some people who are drowning in so much debt because of the interest payments that it kind of evens it out for a lot of people who don't spend more money than they actually should. But you'll see a lot of people in this type of situation when your friend is complaining about how she can't find a decent man, but you have $40,000 in credit card debt trying to be a travel baddie on Instagram. And now you got a bartend at a sticky dive bar every weekend for 200 years to pay it off. It's just to try to live that lifestyle that influencers or super rich, genuinely wealthy people are living on social media, on Instagram, on YouTube videos. But now they have a piece of plastic in their pocket that they could swipe and try to live out the fantasy that they're seeing online. Even though most of the time, the stuff you see from the influencers aren't even their real life, but it doesn't matter. It's the illusion and trying to keep up with the Joneses and living your best life until you get into tons of credit card debt like these people. I'm in debt a lot, a lot, a lot, a lot of debt, multiple credit cards, a car loan, a personal loan for a surgery that I had. And, um, yeah, I'm stressed out about it and frustrated. And I thought I'm going to make this TikTok channel to hold myself accountable. So I'm determined to get out of debt in a year, $100,000 in a year. I made a pretty good income last year. I'm, um, I'm in sales, so there's no telling what my income will be this year, but I think I'm just gonna come on here like every day and say something I did that day to get myself out of this hole. So I decided to put this clip in because I found this channel and this isn't super far fetched. There are a lot of people making dedicated channels to keep themselves accountable and get themselves out of debt, which I do think is a positive thing. However, when I went to this page, I looked in debt up to my eyeballs, watch me fix it or die trying. And, uh, unfortunately the most recent video she put up was about a year and a half ago. So I really hope that doesn't mean that she passed away because that would make this a way darker than I thought it would be. But it seems like some users would get the motivation seeing others talking about their debt. They'll make an account, make a couple of videos, but then it runs out of steam and then they don't really keep themselves accountable and then they'll start snowballing and the debt will end up getting worse. So hopefully that's not what happened to this account, even though it kind of seems like it, but that initial motivation for someone to get out of debt needs to be pushed with a lot more discipline to actually keep yourself on track. I'm going to hold your hand when I say this, but not everyone is in credit card debt. It's just frustrating to get on this app and see that people are saying like, don't worry if you see your friends going on trips, they're in debt. If you see this, they're keeping, you know, that's true in some cases. I'm not denying that. But me and my husband are a great example of people who go on trips, have a great life, but we don't have any debt. And I think the biggest problem is this whole keeping up with the Joneses thing where people are living above their means. And second of all, the cost of convenience. People indulge in conveniences when they simply can't afford it. Conveniences like Amazon Prime and DoorDash and things like that all sound great, but in reality, those add up and are high costs. So I think we're going to cut it off there. I don't want this video to be too long, but YouTube thinks you'll like this video popping up on screen right now. But hopefully you guys enjoyed this video. If you did, please leave a like, and I'll talk to you guys later.