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.
Duration : 0:3:25
Although the …
Although the premise is good, the assumptions are a bit off. Generally, Credit Card companies structure their minimum payments to pay off the balance in 20 years or so. So instead of $142 a month, it should be more like $175.
One thing you did not mention is that this also assumes that you stop buying stuff with your credit card. If you buy $100 worth of stuff a year, you will never pay off your debt
Overall, nice …
Overall, nice presentation, but why was the debt dropping $1 per month at first, then slows to $5 per year? That skews the numbers higher, but the debt is still catastrophic.
Good Illustration. …
Good Illustration. I don’t think debtors dispute this knowledge, rather they fall victim to the psychological trap of deferred pain. Paying $20 for something at a later time seems less painful than paying $10 for it today. The problem is compounded when they don’t have the $10 in the first place.