This YouTube video by Jake Tran documents the history of credit cards, and how they exploded the personal debt of millions of ordinary Americans. They are offered by banks to let people borrow money for everyday purchases. Modern banks make their money by lending it and charging interest. If a customer ever falls behind in paying their balance, the bank then has an limitless supply of money coming back to it.
In the early years of credit cards, banks were limited in how much interest they could charge. They were regulated by state governments. South Dakota was the first state to cut those regulations, and it led to a domino effect. In the 21st Century, credit card interest rates are around 15 to 36 percent. The riskier the customer is, the higher their rate. In this way, low income households are likely trapped in a cycle of debt.
In the final segment, Jake interviews the YouTuber AskSebby. AskSebby is an expert at using cards to make money rather than burn it. There are ways out of debt like refinancing. And although there are risks, investing your money in assets like gold or stocks can maintain your wealth over time.