The Card Game
Lauren Burk
BUSG1370
Professor Wallace
4/16/15
Extra Credit – PBS Frontline Video
PBS Frontline Video, “The Card Game” is very cleverly named as it is a video of how consumers and banks have dug such a deep hole of debt that is affecting the economy due to playing a gambling game will loans, credit, etc. I actually am glad that this video was brought to my attention as I have never fully understood where credit card companies and banks got their fees and limits from. I personally have experienced the exact thing this video was trying to point out, and was “taken advantage” of with credit card companies hiding fees and/or not clearly stating what I was going to be charged for or what my interest rate was. When I got my first credit card, I was a college student and was given the low interest rate spill. I don’t remember exactly what it started out as but I clearly remember missing a payment and the interest rate sky-rocketing to 28%. I never realized how much money I basically threw in the garbage (but now know it was just putting money into the banks pocket) by paying my minimum balance due. As I’ve gotten older and started paying better attention to my finances, I realized that I was in fact paying more on interest and fees than I was toward my balance. It took me over 6 years to pay off a $600 credit limit. I agree with the video that banks should be more forthcoming with telling the consumers what they will charge, how high your interest rate will go, and what you have to do to make the changes take place. I do not agree with hiding terms in the small font that most never read, or even if they did they probably would not be able to understand. The economy and amount of welfare participants I think has gotten to where it is with a big part being consumer debt. The poor were given such a big opportunity to get themselves in holes, and in turn made the rich richer. I do not think the government should completely step in as this is a commodity and users should
BUSG1370
Professor Wallace
4/16/15
Extra Credit – PBS Frontline Video
PBS Frontline Video, “The Card Game” is very cleverly named as it is a video of how consumers and banks have dug such a deep hole of debt that is affecting the economy due to playing a gambling game will loans, credit, etc. I actually am glad that this video was brought to my attention as I have never fully understood where credit card companies and banks got their fees and limits from. I personally have experienced the exact thing this video was trying to point out, and was “taken advantage” of with credit card companies hiding fees and/or not clearly stating what I was going to be charged for or what my interest rate was. When I got my first credit card, I was a college student and was given the low interest rate spill. I don’t remember exactly what it started out as but I clearly remember missing a payment and the interest rate sky-rocketing to 28%. I never realized how much money I basically threw in the garbage (but now know it was just putting money into the banks pocket) by paying my minimum balance due. As I’ve gotten older and started paying better attention to my finances, I realized that I was in fact paying more on interest and fees than I was toward my balance. It took me over 6 years to pay off a $600 credit limit. I agree with the video that banks should be more forthcoming with telling the consumers what they will charge, how high your interest rate will go, and what you have to do to make the changes take place. I do not agree with hiding terms in the small font that most never read, or even if they did they probably would not be able to understand. The economy and amount of welfare participants I think has gotten to where it is with a big part being consumer debt. The poor were given such a big opportunity to get themselves in holes, and in turn made the rich richer. I do not think the government should completely step in as this is a commodity and users should