1 . What data in the documentary most astonished you?
The matter that most surprised me was your amount of credit cards that a household. I actually am at present stressed out by having one mastercard, I could not really imagine multiplying that tension by almost eight. I understand that adults with families will need credit cards to assist buy requirements for their households, but I do think that if you want to take on the responsibilities of having a credit card, factors to consider you are able to pay more then just the minimum amount.
That is one more thing that shocked me, the truth that thirty-five million persons only pay the minimum sum due is really shocking because people should be well aware by now how much cash they are basically loosing by doing that.
2 . Do you consider the government must have a role in regulating equally who can acquire credit cards and what interest and fees customers should pay out? If therefore , who should be the regulators? Who would benefit from this kind of regulation? Would you lose? Describe.
I don’t think the government needs to have a role in regulating that can get a credit-based card or the rate of interest or fees. When people sign up for a credit card, they are well aware of the responsibility that they can be taking on. Everyone should know their limit and how very much interest they can be charged, if you cant find the money for to shell out something away on time you should not buy it. I don’t believe people should certainly blame the banks if they are being charged curiosity on their buys; it is their very own responsibility to keep track of their income and their spending. However the bank is usually making money off of people who tend not to pay their bills promptly, they are the types lending funds to people and in addition they need to help to make some earnings to, like every other organization out there.
3. How, according to the four “normal consumers in the documentary, does owning a visa or mastercard or credit cards affect purchasing decisions?
Having a credit card or multiple credit cards give the impression of having additional money then you really do. The visa or mastercard makes people think that spending it afterwards isn’t a big problem, when actually it buries people in huge amounts of personal debt. Buying some thing for $500 and only producing minimum obligations for it can certainly end up being dual the price (depending on your fascination rate). I used to be brought up convinced that credit cards happen to be for emergencies and emergencies only, great that I have one I find myself convinced to by things which are not even near a necessity, and because of this piece of plastic, I also find that I convince myself never to worry and this I will repay it later. This affects the purchasing decision by giving the illusion involving that most persons don’t have, people have a hard time specific the difference of their wants and their needs. Since there is an option to do a bare minimum payment, the majority of people are taking that route.
some. Who seems to lose and gains the most by credit card companies’ policies?
The people who gain from credit card issuers are the ‘dead beats’, also called the people who pay off their entire credit card bill towards the end of the month. The reason that they will be the gainers is because they are the ones whom never have to pay fascination, therefore the credit card companies are not producing any money off of them and are basically just loaning money to these people. The individuals that spend of their entire bill at the end of the month not only do not have to pay fascination, but they also gain benefits and good credit rating rates, according to what that bank gives. The people that lose via credit cards are definitely the people that only make the bare minimum payments. The downfall with only paying of the minimum payments is that they will be gaining fascination of the balance spent, so they are continuously loosing funds. They may think that they are saving bucks because they are not really spending a lot on repayments, but in the long term they are spending double the amount.
5. Has got the documentary inspired how you might use bank cards in the future? Explain (Frontline, 2008).
Definitely, We’ve always believed I had a good concept generally speaking credit card condition, but taking a look at the video made me understand how much money I am actually loosing. I’ve always paid more then the minimum payment but still, I would personally much alternatively be one of many “dead beats. Being at school makes that next to impossible although since I am unable to work as very much as Let me. This video makes myself more aware of the purchases that I help to make and it also makes me wish to pay off my credit card off immediately! Like a student has put myself into a lot of debt, I hope that when I have a job in place I am able to repay all of my own debts.