Older Australians caught in a credit card debt trap | 7.30

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  • čas přidán 14. 07. 2019
  • In Australia, turning to credit has become a serious problem with this country now recording one of the worst levels of household debt in the world.
    The Salvation Army reports that out-of-control credit card debt is the number one reason people show up asking for help.
    Julia Holman reports that growing numbers of older Australians are affected and takes a closer look at the human cost.
    For more from ABC News, click here: www.abc.net.au/news/
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Komentáře • 682

  • @johjohnson
    @johjohnson Před 4 lety +391

    I feel bad for the first couple but I find it hard to empathize with the second when they've used credit to fund their lifestyle choices. At some point you need to be accountable for your own actions

    • @JaneDoe-ni2ft
      @JaneDoe-ni2ft Před 4 lety +6

      Simon Lam same!

    • @kaisong5004
      @kaisong5004 Před 4 lety +9

      It was nice for one of the bank to waive the credit card bill for the couple.

    • @jamessteely
      @jamessteely Před 4 lety +37

      Ye and after boasting about travelling on the banks dime / credit cards he got one of the $25k bills cancelled. I never feel bad for the banks but that’s BS.

    • @jimethota
      @jimethota Před 4 lety +20

      Baby boomer mentality

    • @WarblesOnALot
      @WarblesOnALot Před 4 lety +6

      @@jimethota
      G'day
      Nope.
      "Baby Boomers" were born in the 10 years following VE/VJ-Day in 1945 + 9 months gestation...
      So, because one of these Men is 78 (born in 1941) and the other one is 59 (born 1960) ; then neither one of them is a
      "(Post WW-2) Baby Boomer"
      I was born in February 1961, my mother was born in 1936, my father was born in 1909...; there is no way that my conception occured as a result of Hitler shooting himself or Hiroshima & Nagasaki being nuked...
      But ignorant Arseholes (like y'self) habitually talk crap about people like m'self being "Boomers".
      Recalibrate your perceptions and correct your termimology, or forever paint yourself as a FOOL.
      Just(ifiably ?) sayin',
      Take it easy.
      ;-p
      Ciao !

  • @skywalkeruk84
    @skywalkeruk84 Před 4 lety +224

    "We love to travel, to over 50 countries" paid for with credit cards you couldn't afford, then beg for debt relief. Shameful. Live within your means!

    • @lorrainesoo252
      @lorrainesoo252 Před 4 lety +23

      Well said, stupid couple bragged on about their travel using money they don't have.

    • @myroom4640
      @myroom4640 Před 4 lety +5

      My dad always said if you have 2$ in your pocket, spend one and save the other. I don’t have credit cards, but am hopeless, I need to save some away for a rainy day. I ow 10$ to the. Lawnmower guy. Apart from that it’s the bills that make life difficult. Can’t escape the dreaded bills.

    • @myroom4640
      @myroom4640 Před 4 lety +11

      I can understand if people are desperate and use credit to pay their bills, but come on using credit to travel, that’s not a necessity, it’s ridiculous. One doesn’t need to travel as you can see it all on tv anyway.

    • @vanguardas9927
      @vanguardas9927 Před 4 lety +4

      Can't expect much from Filipino immigrants

    • @myroom4640
      @myroom4640 Před 4 lety

      Mr Awesome I agree. Though once we get behind , it’s hard to get back on top of things. I’ve had that trouble before, falling behind with bills.

  • @ElixirEcho
    @ElixirEcho Před 4 lety +307

    Why is Financial Education not a mandatory subject in schools?

    • @kitkat7523
      @kitkat7523 Před 4 lety +49

      They don't want people to be financially literate, banks prey on stupid.

    • @seaworldsocialartslecturer4160
      @seaworldsocialartslecturer4160 Před 4 lety +26

      To many lesbian basket weaving studies 🤪

    • @meheretoday6968
      @meheretoday6968 Před 4 lety +5

      Doom and Gloom, I fear after reading the other comments in this thread, that the education system may have missed teaching more than how to manage your finances.

    • @nachannachle2706
      @nachannachle2706 Před 4 lety +2

      It is in some schools. Just ask to see the school's curriculum. It should be nested somewhere in the HASS package.

    • @nachannachle2706
      @nachannachle2706 Před 4 lety

      @@meheretoday6968 Lol! Brilliant quip! :)

  • @terrybrady8588
    @terrybrady8588 Před 4 lety +114

    If you can't tell a friend your broke, they are not a friend.

    • @nayanmalig
      @nayanmalig Před 4 lety +3

      Unless the friend is broker than you

    • @PORTDEPAIX
      @PORTDEPAIX Před 4 lety +2

      If you tell your friend you're broke, he'll soon know what next.

    • @babyface7596
      @babyface7596 Před 4 lety +1

      Very well said, Sir .

    • @terrybrady8588
      @terrybrady8588 Před 4 lety +1

      @@babyface7596 Thanks.

    • @1969cmp
      @1969cmp Před 4 lety

      It may not be the friend's fault, either.

  • @ultramegasuper11
    @ultramegasuper11 Před 4 lety +83

    I love the last line. He’s going to throw money away on a lottery ticket ! Proves there is always room for another bad decision.

    • @krokodilen31
      @krokodilen31 Před 3 lety +1

      Or smoking.....

    • @mistletoe88
      @mistletoe88 Před 3 lety

      yeah, that kind of sound financial decision making is probably part of how he ended up here in the first place.

    • @gerardmangan5870
      @gerardmangan5870 Před 5 měsíci

      Credit cards are the narcotics of the financial world.

  • @heydido07
    @heydido07 Před 4 lety +82

    Our schools need to start teaching about money. How to invest when you are young, how to financially prepare yourself for hardship and learn what is good debt and bad debt

    • @leoncutajar1369
      @leoncutajar1369 Před 4 lety +15

      Students are taught how to be employees by employees.
      The government and their owners don't want financially educated people as it doesn't suit their needs.
      The fact is the education system works well for the people who run it so there is no need to change it.

    • @darthwookiee77
      @darthwookiee77 Před 4 lety

      I wish I knew how to invest on stuff. It looks so daunting.

    • @leoncutajar1369
      @leoncutajar1369 Před 4 lety +1

      @@darthwookiee77No more daunting then leaving your money in the bank.
      A good start is checking out some of robert kiyosaki's work.
      That being said expect a lot of what you though knew to be wrong.

    • @seaworldsocialartslecturer4160
      @seaworldsocialartslecturer4160 Před 4 lety +2

      They would have to cancel some lesbian basket weaving studies to fit education on money into the curriculum.

    • @leoncutajar1369
      @leoncutajar1369 Před 4 lety

      @Rosemary Mardardy If I was to take a bet I'd bet a sparrow flying to the moon with the parliament house tied to it's feet has a better chance.
      The reality is the government, banks and big business doesn't want an educated population who are self reliant and can make rational financial decisions.
      This doesn't serve their interests.

  • @ullah8334
    @ullah8334 Před 4 lety +94

    Credit cards are a curse I was in $16000plus debt on anz visa with 20plus interest rate....i worked like a dog and paid it off....never ever again...NEVER!!!!

    • @ullah8334
      @ullah8334 Před 4 lety +14

      Debit card for ever

    • @annyer262
      @annyer262 Před 4 lety +9

      @@ullah8334 Pay cash. Take out a set amount of cash at the start of the week, and once you spend it all, stop until next pay day.

    • @TheFrickshow
      @TheFrickshow Před 4 lety +4

      the stupid to that... declare yourself bankcrupt and all wiped clean within 3 years!

    • @myroom4640
      @myroom4640 Před 4 lety +3

      Yes credit cards are ridiculous and people get sucked in.

    • @MissSyntha
      @MissSyntha Před 4 lety +1

      20 percent??why it's too high

  • @armchairwomanmao2922
    @armchairwomanmao2922 Před 4 lety +24

    It's called living beyond one's means.

  • @tooboukou8ball702
    @tooboukou8ball702 Před 4 lety +19

    1: health issues, ran out of money💔
    2: I like to travel, ran out of money 🤷‍♂️

  • @glasseverywhere
    @glasseverywhere Před 4 lety +24

    21% interest cut the credit never use it. PERIOD!!

  • @Whosetheworst
    @Whosetheworst Před 4 lety +18

    Ordinary Australians struggle while Corporations make huge profits and pay no tax at all. In a country that's blessed with natural resources we shouldn't be having these kind of problems.

    • @kitkat7523
      @kitkat7523 Před 4 lety +3

      The resources of a country belong to the people not govt. Every Australian should receive a big cheque every month, it's a rich country. Stop mining as it's not serving us, just adding to destruction and pollution.

    • @Whosetheworst
      @Whosetheworst Před 4 lety

      @@flyingrc2041 I have a job and a small business and unlike big corporations I don't ask for handouts from the government. Are you a Russian troll farm employee or something flying rc?

  • @ittakesavillage5461
    @ittakesavillage5461 Před 4 lety +45

    We need more people following the Dave Ramsey plan

    • @Lumanix1
      @Lumanix1 Před 4 lety +2

      Hahaha i was just going to write that. Seems like its the same story here in Australia as it is in the US. Credit cards are a curse. I binge watch his videos to remind me to not go into Debt

    • @robocop581
      @robocop581 Před 4 lety +2

      You don't need a Dave Ramsey plan. When I started my career in the late 80s and read credit card companies charged 27% interest. That alone told me CCs were bad. My wife had to force me to get a CC in 1997 because I went on business trips and travelers cheques were inconvenient to use. I still avoid using CCs, mainly use cash for everything unless I'm ordering something online.

    • @marcusscottbalahari7198
      @marcusscottbalahari7198 Před 4 lety +2

      I think its hilarious that every says go to Dave Ramsey. Its not rocket science. Its a budget.

    • @cassieoz1702
      @cassieoz1702 Před 3 lety

      You still need a job. Even Ramsey is no good to someone on Newstart

  • @marietaylor5174
    @marietaylor5174 Před 4 lety +26

    I only used credit cards as charge cards; in other words, I never carry a balance from month to month.

    • @ubonrat8653
      @ubonrat8653 Před 4 lety +1

      Likewise I use it for everyday living, no transaction fees and I get 1 percent back on regular bills, paid to zero every friday without fail, the bank are paying me to use the card, they hate customers like us LOL

    • @giantsquidMAN
      @giantsquidMAN Před 4 lety

      @@ubonrat8653 they don't hate you, they're still making money off you. They just don't like you as much as people who rack up interest;)

    • @ubonrat8653
      @ubonrat8653 Před 4 lety

      @@giantsquidMAN yes your right they make a percentage from the merchant when you buy, banks always win one way or the other

    • @whereareyougoingwherearewe806
      @whereareyougoingwherearewe806 Před 4 lety

      Me too. I personally think that it is much easier to manage my monthly spending with a credit card than with a debit..( I just need to check and keep the total amount to pay each month under a self pre-set limit). People blame credit cards when they should blame their lack of self-control. Do not spend beyond our means. That is all we need..and if used appropriately credit cards are so convenient and beneficial (the credit card I use has a gift point-0.5%- program for the amount spent)

    • @ubonrat8653
      @ubonrat8653 Před 4 lety

      @@whereareyougoingwherearewe806 yes and there are no transaction fees with credit cards unlike debit as you stated keep it in control and pay back to zero every pay day, collect reward at the end of the year

  • @tiptoptonic
    @tiptoptonic Před 4 lety +48

    Not once did any of them acknowledge the irresponsibility of their own actions on camera. Its sad but these we're many bad choices that escalated. It's not simply a one off bill paid on a CC. It hasn't helped that Australia missed the last recession, which has meant the credit frenzy has just kept going unlike in other places.

    • @the-chipette
      @the-chipette Před 4 lety +4

      To be fair, the first couple only took out loans for emergency medical expenses.
      Medicare only covers medications to an extent and they seem genuinely remorseful to their situation.
      I don’t feel bad for the second and other couples. How are paraprofessional retirees still broke? The Asian couple, for example, want all the benefits and none of the responsibility.

    • @robocop581
      @robocop581 Před 4 lety +2

      @Tomthebomb Watch the video again. The cost of meds is not the issue. It's her poor health that caused her to lose her job which cut their household income by half

    • @nayanmalig
      @nayanmalig Před 4 lety

      @@robocop581 If bank interests are high people would save - capitalist societies are supposed to value capital or people's hard work - which is savings - instead all the funds falls into fancy financial schemes conjured up by greedy rogues

    • @robocop581
      @robocop581 Před 4 lety +1

      @@nayanmalig Savings are a surefire way to lose capital every year from inflation. You need to invest. If you don't that ten bucks will be with 2 bucks in 20 years. The people in this video not only didn't save which means they never thought about investing.

    • @nayanmalig
      @nayanmalig Před 4 lety +2

      @@robocop581 Investment comes later - first humans must realize the value of money AKA their labor - not everybody can be investors - Warren Buffet "the great investor" is a multi billion dollar bailout recipient - it's an insider game - when a person who gets 4,000 dollars try to live like as if he earns 20,000 the shit will hit the fan eventually

  • @victoriacorcoran1258
    @victoriacorcoran1258 Před 4 lety +63

    Banks charging 11-20% on credit cards when RBA has set official interest rates at 1% is a question our politicians need to address. The Royal Commission did not go far enough.

    • @MrBCorp
      @MrBCorp Před 4 lety +2

      Mortgages are not even 5%. 20% on credit cards right now is a joke

    • @MrBCorp
      @MrBCorp Před 4 lety +3

      Well if there's one thing we can all agree on, the Royal Commission definitely didn't go far enough. But I believe it was designed that way.

    • @barraabus
      @barraabus Před 4 lety +3

      Hahaha. the politicians work for the bankers, not the people they extract taxes from to pay their exhorbitant salaries.

    • @barraabus
      @barraabus Před 4 lety +2

      Royal commissions are a joke designed by people who need to make people believe they are doing something to ensure their salaries for doing nothing continue.

    • @thomasj5722
      @thomasj5722 Před 4 lety +1

      Why its peoples own choice to get one, and the most insane thing is that guy got no limit on his credit so now he spend 50% of his income on debt, there should be a stupid people limit so those things don´t happen. That´s why they are asking 20% no way in hell will they get even half of that money back from people

  • @skylinec83
    @skylinec83 Před 4 lety +8

    I can’t believe they ended this video with the guy saying he wanted to pay off his debt but buying lottery tickets. That sheds a lot of light on why they’re in their situation. With all sympathies, their credit counselor needs to teach these people how to be financially literate and not begging the banks to forgive their debt.

  • @coraltown1
    @coraltown1 Před 4 lety +16

    21% interest on the card debt .. criminal

    • @olusegunadebayo5306
      @olusegunadebayo5306 Před 4 lety +1

      Made mention of that too 21% is thievery.

    • @RaveeCG
      @RaveeCG Před 4 lety

      @@olusegunadebayo5306 One bank from Romania just changed in June from 24% to 25% with just one mouse click, because others are at 26%. I will never have a credit card. And this 25% is cheap with every payday loans at every corner!

  • @cancel.lgbtq.6892
    @cancel.lgbtq.6892 Před 4 lety +28

    Not just in Aus but an epidemic around the world. People will work until they drop dead. Few people will be able to retire. Student debt, personal debt, stagnant wage, high cost of living.

  • @camfam52002
    @camfam52002 Před 4 lety +60

    So old mate has an overseas holiday in the plastic then get's a debt waiver?? Guess who ultimately paid his debt.....everyone else. Nice gig if you can get it. They appeared to be religious....I see this a lot. Avoid responsibility then pray, pray, pray it all goes away.

    • @UltimateBargains
      @UltimateBargains Před 4 lety +7

      The definition of prayer is how to do nothing and still think you're helping.

    • @iamasmurf1122
      @iamasmurf1122 Před 4 lety

      He should of gone overseas to Thailand by himself picked up a better fuck than that 🤣🤣🤣

    • @annyer262
      @annyer262 Před 4 lety +1

      They should give them a break on the interest charges, but still have too pay back the principal.

    • @zealman79
      @zealman79 Před 4 lety +1

      @@iamasmurf1122 like the one you picked up at the ladyboy bar in nana plaza mate 😂

  • @bryankho
    @bryankho Před 4 lety +29

    Hmm, second couple taking trips all the time have to realise that they are kicking the can down the road. I've had one holiday in the past ten years because I'm trying to secure my finances first, even though all my friends have travelled way more than me. And yes, I'm a millennial. Financial Ed needs to be mandatory in schools.

    • @nachannachle2706
      @nachannachle2706 Před 4 lety +2

      "Mandatory in schools?" Well, it's too late for Boomers and X-ers.
      If you think things are worse, wait until cash disappears and money becomes "digital". You will have 75% of people stuck in the situations described in the video.

    • @afrivox
      @afrivox Před 3 lety

      It is amazing how some people think. A holiday is a luxury that should NEVER be put on credit card. Ever... It shouldn't be even done unless one has some savings left. Smh

  • @gmac4157
    @gmac4157 Před 4 lety +202

    "If we have $5 left over, we buy a Lotto card", Why the poor stay poor.

    • @unprotectedhex1716
      @unprotectedhex1716 Před 4 lety +25

      ^the poor spend, then struggle, then gamble and beg
      The rich research; learn from failures of themselves and others; make strategic moves- if fail they learn- if success try perfect it, aim for passive cash flow, then spend the excess

    • @tonyanzellino4359
      @tonyanzellino4359 Před 4 lety +5

      @@unprotectedhex1716 Are the poorest in the Australian society supposed to starve? Not all the older people spend on credit cards rather they will go without. The problem is those who earn $200,000 or more can't understand how degrading it is for those who have to scrape every day. $200,000 P.Y. is a reasonable income but these days people want the best of everything. Perhaps Australia needs a system like they have in America where all wealthy companies donate 5 - 10% of their untaxed income into a central fund. People who get into financial trouble or want to do a higher education can apply for Grant's which don't have to be repaid.
      Greed is a curse and the richer get richer, the poor get poorer.

    • @nonofyabidnez5737
      @nonofyabidnez5737 Před 4 lety +16

      @@unprotectedhex1716 The rich constantly get scammed out of their money. The difference is that they can afford to fail a lot more often.
      Also the system is designed to keep the poor poor and the rich rich, as evident by 22% credit rates.
      That's also why the best indicator of your success in life is how rich your family is.

    • @the0point
      @the0point Před 4 lety

      exactly.

    • @tonyanzellino4359
      @tonyanzellino4359 Před 4 lety +2

      @RaoulDuke6666 I didn't say that I wanted the poorest in our society to be poor. Read my comment again carefully, I stated that not all of the poor use credit cards....I stated "some of the poor people will use credit". The remainder of my comment was with regard to the system used in America.

  • @glenhannan
    @glenhannan Před 4 lety +10

    It’s sickening to see people getting themselves into debt- knowing fully what they are doing - then blaming he banks for giving them a credit card. It’s pathetic.

    • @2011smperry
      @2011smperry Před 4 lety

      I agree. Blaming the banks is one thing, but full personal responsibility is another, It's not the banks fault if somebody runs up credit, although the banks do their best to be responsabile. It's up to the credit card holder to be careful regarding credit card usage.

    • @ralphefernandes
      @ralphefernandes Před 4 lety +2

      @@2011smperry 21% interest charged means the bank is doing its best to rip off the user.

  • @rachels209
    @rachels209 Před 4 lety +5

    Holy crap! How can I sympathise with the jet setters when there is a clear case of lack of accountability and planning for their future/ retirement. You reap what you sow.

  • @bobmarshall3700
    @bobmarshall3700 Před 4 lety +18

    Interesting the level of interest these parasite banks charge for credit cards (up to 20% p.a.) as reported in the program, yet they only pay 2% - 3% interest on savings accounts.

    • @josealejandro6602
      @josealejandro6602 Před 4 lety +1

      Or if you put your money in index funds you will get a approx 9.5%...

    • @mylesgray3470
      @mylesgray3470 Před 4 lety

      It’s way worse than that it the US. Credit card rates are up to 29% and interest on most savings major bank accounts is .01% so it might as well be nothing. I finally changed from a big bank I was with 20 years to a local credit union to at least get 2% return on savings. Stocks and real estate are the only way to get a real return. It’s risky and not as easy as it used to be.

  • @flowergrowersmith449
    @flowergrowersmith449 Před 4 lety +9

    This country urgently needs personal finance taught from high school. There's absolutely no need for this to happen.

    • @gav240z
      @gav240z Před 4 lety

      This country desperately needs a credit free enema. No more debt..

    • @bt1gm
      @bt1gm Před 4 lety

      They don't want that. They repeat history ww2 stories nazis communism. Pointless useless education

  • @xotic8617
    @xotic8617 Před 4 lety +24

    People always want it NOW these days and just can’t wait to save the money first they also live out of their means as well...

    • @MartintheTinman
      @MartintheTinman Před 4 lety

      I'm fifty two and try as I might I can't save to get what I want because it goes up faster than I can save.
      I'm back on Newstart due to a work injury that Allianz knocked back my claim on.
      I can't afford to eat more than twice a day because I have to pay for my yard to be maintained and it also uses up the money I should be spending on Physiotherapy.
      Thankfully I'm not a rampant consumer and I don't care to go out.
      I'd like to do things but I just remember my life before 1993 when I had an income that allowed me to do something besides watch TV all day

  • @elizagaskell7957
    @elizagaskell7957 Před 4 lety +7

    Thank God I watched this on TV 'cause I do not ever want to be like them when I get much older. I do not want to be struggling for electrify or for food or such nor do I want to be financially unstable.

  • @monsieurfortuna9952
    @monsieurfortuna9952 Před 4 lety +11

    That money that they spend on lottery tickets should be going to paying down their debt.

    • @intomusic7074
      @intomusic7074 Před 4 lety +1

      @monsieur fortuna if everyone chipped in every week like they do with lotto raising hundreds of millions of dollars.
      Problems would be solved
      It could be a pool of money every week that could be spent wisely.
      Lotto is a scam...

    • @vickieclark5931
      @vickieclark5931 Před 4 lety

      That's what I was thinking when he was buying a lotto ticket. He should put that towards his debt, food, or shelter.

  • @Idontwantahandle3
    @Idontwantahandle3 Před 3 lety +4

    Never borrow money from banks, or any organization! Unless it is an emergency, and can not be avoided. If you want something, save up for it.

    • @notroll1279
      @notroll1279 Před 4 měsíci

      Generalization rarely works.
      I never borrowed money for consumption but took out mortgages to buy a home.
      Those cost around 5% p.a. when we bought and we renewed our last bit at slightly above one per cent.
      After some initial years of heavy down payments, we calculated that this worked out very well for us, basically leading to saved rent and appreciation several times higher than interest paid.
      It's not "never" but rather "know exactly what you're doing".

  • @waywardgeologist2520
    @waywardgeologist2520 Před 4 lety +36

    Australia needs it's own version of Dave Ramsey.

  • @jannisarie
    @jannisarie Před 4 lety +3

    I can't believe that guy got half his lifestyle debt waived... how do I get half my mortgage waived?

  • @frogsama666
    @frogsama666 Před 4 lety +10

    For anymore who needs an Australian Dave Ramsey: The Barefoot Investor

  • @stuartrussell-gibson6321
    @stuartrussell-gibson6321 Před 4 lety +4

    Both couples would benefit from the Dave Ramsey approach to debt repayment. Chopping up the cards should be the first step.
    The first couple needs to get their income up somehow and prioritize core living costs (e.g. rent and food) over paying the credit card bill. Not sure if the first guy is working 40 hours if he's making $800 per week.
    The second couple has a spending problem, so a written budget will be of greatest assistance.
    Debt settlement may help both couples in the short term, but they will end up in the same spot again in 3-4 years if they don't start living within their means.

  • @davidnorton7464
    @davidnorton7464 Před 4 lety +5

    What a crock. Borrow to travel overseas then get mission Australia to wave your debts away lol

  • @darthwookiee77
    @darthwookiee77 Před 4 lety +21

    Credit Cards are the first step to going into financial ruins. I saw many people put themselves into debt because they were honestly just irresponsible :(

    • @vickieclark5931
      @vickieclark5931 Před 4 lety +2

      I 100% agree. I ended up in financial trouble years ago because of my own stupidity. Credit cards = Stupidity. I don't touch them now. I used to have a 800 credit score and was broke. Now I have a low credit score (because I don't borrow money anymore) and I have money. Go figure.

    • @jnthepassenger347
      @jnthepassenger347 Před rokem +1

      It’s all about moderation. If used right, you’ll have an 800 credit score and have money.

  • @bt1gm
    @bt1gm Před 4 lety +5

    Avoid cards and banks as much as possible.

  • @iammm66
    @iammm66 Před 4 lety +5

    2008 CD rate is 5%, now is 1%, and credit card APR still 23%, no legistration ask credit card company why

    • @mylesgray3470
      @mylesgray3470 Před 4 lety

      Shawn C The rates on credit cards are so high, it’s criminal. They were once a nice convenience but at these rates, I don’t see them as a good option for anything. Instead of a credit limit, I have savings. If they ever want my business, for credit, they will have to offer a reasonable interest rate of well under 10%.

    • @Leaptab
      @Leaptab Před 3 lety

      It is absurd that the government doesn't set a cap or peg it to mortgage rates. Credit card rates shouldn't be higher than 7.5% at present.

  • @dunggg
    @dunggg Před 4 lety +3

    The first couple I can empathize with because medical debt is a big problem that only gets worst (because of loosing ability to work). But the second the couple... spending money and get into debt to travel? Sympathy is in short supply.

  • @archonlegion6288
    @archonlegion6288 Před 3 lety +1

    I'm 69 and I have NEVER used a credit card. The answer is simple. Living within your means. Sure I don't have a new car, but the one I have is worth $13000 that's good enough to get me around. Paid for with cash. I find it hard to have sympathy for these people. Everyone knows that credit costs.

  • @nayanmalig
    @nayanmalig Před 4 lety +5

    Three thousand dollars is something like two years salary for the average Indian - when you reach the thirties it's important to change the lifestyle to a healthy one in all areas - food, drinks, habits, exercise etc and save for a rainy day and be debt free - then hope for the best - easier said than done of course - there are unfortunate circumstances and some people need help anyway

  • @actorzone856
    @actorzone856 Před 4 lety +3

    The ABC should do a story on people who don't take out credit, who can manage money, can live withing their means and are living easy, there are lots of people who have done it tough in life and have a positive attitude and never fall into the credit card problems. these people need positive advice from those people as there are ways to make extra money apart from your employer.

    • @iamasmurf1122
      @iamasmurf1122 Před 4 lety

      actorzone and you think the rich got rich do you by living within their means ?? Living within your means is one of the biggest crocks of shit around , debt is a useful tool and you can use debt to leverage your lifestyle to buy houses etc.... in fact it’s the quickest way to get rich , these people just don’t know how to use debt is all and instead of being pro active have a winge !! I myself was on the dole had no job and paid off $10,000 on credit in 6 months , while having a car and while renting a flat by myself and paying off bills , it’s a lack of financial brains that’s going on here

  • @davidjohnston7120
    @davidjohnston7120 Před 4 lety +2

    My heart goes out to any family struck by chronic illness, it is just so expensive even with Medicare. It is crippling.

  • @marypac4882
    @marypac4882 Před 4 lety +4

    On one hand, the first couple cannot really afford to live in a big city but they need to live in the country when the rest is cheaper (that's what some of my friends in their 50s are planning on doing). But then - will he find any job at all if they live in the country - that's a question.

  • @skinnywizard103
    @skinnywizard103 Před 4 lety +5

    Our country is starting to end up like the UK & USA. We use to be a wealthy a country but now we are becoming increasingly poor.

    • @meheretoday6968
      @meheretoday6968 Před 4 lety

      We were never a wealthy country... history shows that most of the population have always struggled financially. The difference is that now people 'expect' more and think less about where the money is coming from... no I am not talking about the people in the video... our parents and our grandparents (well mine at least) lived within their means and it appears that this little rule has been ignored or forgotten by many.

  • @mso008
    @mso008 Před 4 lety +6

    The second couple are just bell ends

  • @jzk2020
    @jzk2020 Před 4 lety +7

    ... someone please cry me a river.
    Who forced them to take out loans and credit card debt? Oh yeah, no one.
    Good series though, thanks for the upload 7.30.

  • @sjian1026
    @sjian1026 Před 4 lety +7

    Wait a second. How does a counsellor convince a bank to waive your debt???

    • @the-chipette
      @the-chipette Před 4 lety

      Simon Jian it happens. Usually gotta have good amount of collateral damage just in case

    • @nachannachle2706
      @nachannachle2706 Před 4 lety +1

      You don't need to be a counsellor, you just need to look through the transactions details, prepare your arguments and talk/write like a lawyer.
      Back in 2013, I went mad one day when I realised that a local bank was feeding itself on my pregnant sister's bank account. They were charging her $20 for sending overdraft reminders/letters every 14 days and she ended up paying $1500 over 9 months in commissions, charges and other BS fees. On top of that, the bank would not let my sister change branch, although she had requested to do so many times. They never called her for a meeting to discuss her situation or advise her about how to avoid the debt spiral. My sister was so stressed that she ended up delivering her baby prematurely.
      I wrote a slicing letter to her banker and threatened to put the case forward to the National mediator/mediating body. Banker called us for a meeting and I had a tit-for-tat exchange with her about her appalling practices that betray the bank's mission statement. I guess she started to worry about her reputation and her career as a "bank advisor". Within 2 weeks, all the fees were refunded and my sister could finally start saving her meager income and focusing on her newborn.
      As said in the video, banks LOVE to prey on the low income earners who are not good with credit, overdraft and debt. That's HOW they make money for themselves.

    • @anonmouse15
      @anonmouse15 Před 4 lety

      Threats?

    • @sabbottart
      @sabbottart Před 3 lety

      A counselor will instruct you to stop paying your credit card entirely and send the account into bad debt. They already know they’re getting nothing back so they’ll work with the counselor to close the account and arrange for you to pay back about 50% of the debt. This saves them the trouble of having to sue you in court which would probably lead to a similar result. The result for you is a new lifestyle with a bad credit score and an inability to get another credit card for a while. But you also avoid bankruptcy which is the most detrimental thing you can do to your credit. A single bankruptcy can now haunt you for life.

  • @Brian1952ful
    @Brian1952ful Před 3 lety +1

    Im 68. I have fourcredit cards, but pay any balance owing each month. Theres nothing wrong with credit cards. You have to live within your means.

  • @shazm6357
    @shazm6357 Před 4 lety +1

    So annoying and I find frustrating. Greed greed and more greed by society. Lack of personal restraint and living within your means. I have nothing but am in my own house with no mortgage and got there as a single mother from busting my guts working and by going without. While I was spending less than $30 per year on shoes and cloths, no haircuts and not buying junk I got into my own home from $50 thousand from my divorce. Meanwhile my friends getting half a million in their property settlements are now homeless but spent their lives partying and going on overseas trips and buying designer clothing and living at the beauty parlour (meanwhile I've not ever stepped inside of one). Those same people are now crying about how poor they are and homeless and yet they spent their lives living beyond their means and have the gall to tell me how lucky I am when luck has nothing to do with it. Many poor people are that way by circumstances beyond their control but people like those in the above story spend up big and live the good life instead of living with responsibility and then cry poor. Help those that need help not those that live it up big and then expect a handout when they run out of money to run around the world with.

  • @danielakasmart2891
    @danielakasmart2891 Před 4 lety +3

    This is what i find hard to understand if u borrow someone else money u gotta pay it back

  • @ruicarson659
    @ruicarson659 Před 4 lety +3

    I had my finance for a car in 1989 with GMAC. I was paying $604 a month so almost at end of 4 years GMAC repossesed my car I sign for them to get direct debit, so. I hady car back next day so after. I paid all except. The last month I took the money from the bank and I went to GMAC office to pay the last payment, I handle the money to the lady and she told me to wait
    She's back and said the boss said you must pay more,$3,000/I told her no
    I'm going to a Lawyer ,I did after perusal off all my receipts the lawyer told me GMAC owes me money..so the lawyer rang GMAC and they told him that they not asking for any payment,they lie...the lawyer rang Vic RDS that said ..the car is mine I paid full amount and extra money,I ask the lawyer to go to court,he said because 2 years pass he can't do that

  • @John-gm8ty
    @John-gm8ty Před 4 lety +9

    what ever happened to buyer beware and personal responsibility? oh right, participation trophies and every child wins.

  • @l1city
    @l1city Před 4 lety +1

    Credit cards are scum. That being said, if you load one up for overseas holidays, you need to take a long look in the mirror.

  • @VomicaEmanio
    @VomicaEmanio Před 3 lety +2

    This is why I only have a debit card. If I run out, I live until my next paycheck on oatmeal and pasta. Terrified of the dept trap

  • @robocop581
    @robocop581 Před 4 lety +7

    YOLO. That's all I hear now from people nowadays. You can't enjoy your money when you're 65. I agree except I won't use my credit card to pay for those precious life experiences. Save up first, invest, then use part of the proceeds from those investments to travel. And avoid renting when you reach retirement as you'll be under the mercy of your health and Landlord.

  • @gore1089
    @gore1089 Před 4 lety +3

    There are lifters and leaners as Abbott and Hockey used to say... so the quiet, hard working and aspirational Aussies aren't criticized.
    But it appears the elderly are now also in the firing line, racking up huge credit card bills on holidays they can't afford, extra food or heating their home.... like their younger counterparts, who would rather eat avocados on toast and live in the lap of luxury on the dole than save for a deposit on a house..
    In an economy going gangbusters with millions of jobs.
    What a shameful self indulgent society we've become.

  • @nhmooytis7058
    @nhmooytis7058 Před 4 lety +1

    Im 67, debt free. Haven’t had a credit card since 1987.

  • @jmdjasonday
    @jmdjasonday Před 3 lety +1

    It amazes me sometimes how people don't comprehend that when you use credit cards, you have to pay the money back.

  • @views-ve5kb
    @views-ve5kb Před 4 lety +2

    Dont pay the credit card bills. They are unsecured debt. They can't do anything to you.

    • @meanmrmustard007
      @meanmrmustard007 Před 4 lety

      Unsecured debt. Do not acknowledge the debt and they can not do a thing!

  • @Sam-vn9jm
    @Sam-vn9jm Před 4 lety +3

    Speak with a financial counsellor they can move the earth when it comes to creditors. Especially with their FC rate the bank survey coming.

  • @slerickson01
    @slerickson01 Před 4 lety +1

    800:a week seems like a pretty decent income.

  • @Lumanix1
    @Lumanix1 Před 4 lety +1

    Bloody sad for thst bloke at that start. For a wealthy nation as ours, we should start taking care of our elders. Those who worked for decades and paid their taxes. THEY BLOODY DESERVE BETTER!!!!

  • @tonysteel1377
    @tonysteel1377 Před 4 lety +4

    Sounds like a story direct from the U.S.

  • @scottmorrison6172
    @scottmorrison6172 Před 4 lety +11

    Rents should be halved, followed by house prices.

    • @darthwookiee77
      @darthwookiee77 Před 4 lety +4

      Flying RC you don’t know anything about the guy at all and you are saying he’s a problem. Lol

    • @scottmorrison6172
      @scottmorrison6172 Před 4 lety

      @@flyingrc2041 Supply and demand was a scam. It was all about the availability of credit. You are a fool and want us to live in fool's paradise.

    • @darthwookiee77
      @darthwookiee77 Před 4 lety

      @@flyingrc2041 Nah you're just a judgemental prick.

  • @waBlackout-wa
    @waBlackout-wa Před 4 lety +3

    So you borrowed money to finance your life?.....interest is not so complex of a thing to understand... They don't realise that the debt being carried is destroying the economic system debt should not be used so carelessly.

  • @nusart_bearthorn
    @nusart_bearthorn Před rokem +1

    I hope Oz doesn't start doing revere mortgages, if you haven't already. That draw from your 'super' help solves 'NOW' problems, but come 30/40 years, the county i going to get hit hard again with eldery not being able to live

  • @MK-xw1wf
    @MK-xw1wf Před 4 lety +1

    Declare bankruptcy. Simple & painless, especially if you have nothing further to lose. If you understand how these banksters create money out of thin air you will KNOW there’s no shame in not paying off these ‘credits’

  • @MarieHolliday
    @MarieHolliday Před 4 lety +1

    He looks older than 59 years old

  • @Ryan-zr6yb
    @Ryan-zr6yb Před 3 lety

    First couple: borrowing to make ends meets. Second couple: we travelled the world on credit cards.

  • @paquitoignacio3449
    @paquitoignacio3449 Před 4 lety +2

    they are the one to be blame for their debts, no one else spend beyond your means is digging your own grave.

  • @cassieoz1702
    @cassieoz1702 Před 3 lety

    Both major parties have told me I have absolutely no value to my country other than as a consumer. We need to stop blaming only one side of this. The marketing industry is out of control

  • @II-yd6gx
    @II-yd6gx Před 4 lety +5

    It’s a predators and victims society. Life is a never ending struggle and ultimately futile and no one cares!

  • @rayg5604
    @rayg5604 Před 2 lety

    Rich dad poor dad, gets you 95% of the way.

  • @nickgarillo878
    @nickgarillo878 Před 4 lety +1

    Gambling den in every corner of Australian cities are one of the causes of many Australian family's financial problem who are addicted to gambling.

    • @blairfell9769
      @blairfell9769 Před 4 lety

      Nick Garillo *text mystery_hacker79 on Instagram he’s an expert*

  • @helltanner3722
    @helltanner3722 Před 4 lety +2

    he needs to go bankrupt 800 a week and a 20% interest on 50k he needs to work 12 weeks just to pay the interest..its not doable.

  • @johnmunro4265
    @johnmunro4265 Před 4 lety +1

    Do people not know that credit cards and loans are not free money and you always have to pay more than you get! I feel bad that they are trapped in the debt cycle but then it's all by their own making

  • @danltc9392
    @danltc9392 Před 4 lety

    asic should enforce leverage ratio based on monthly earnings.

  • @notroll1279
    @notroll1279 Před 4 měsíci

    Doesn't Australia have private insolvency as a way out?
    I'm not surd about the second couple - but the first one appears to have no material assets worth mentioning and a modest income - in most countries, there would be no waiver negotiations but a declaration of bankruptcy and a clean slate after some time.

  • @nomannothedark
    @nomannothedark Před 4 lety +4

    Omg, They put money aside to buy lotto..... not to pay back debt or put into investments. Poor stays poor.... I am sorry

    • @iamasmurf1122
      @iamasmurf1122 Před 4 lety

      XO Sauceror hey what’s wrong with gambling heaps of rich people do it , Kerry packer one of Australia’s richest was a big time gambler , you know hardly anything mate

    • @frogsama666
      @frogsama666 Před 4 lety

      @@iamasmurf1122 you are a clueless one aren't you. They are in debt and worries if they'll be able to afford rent. And you are saying its not a problem to gamble whatever they have left?

  • @bluebellrose8
    @bluebellrose8 Před 4 lety +1

    I feel a bit mean for saying it but, I don't think the bank should waive their debt. They spent it! Especially the couple that travelled the world. Give me a break! I try to live below my means and I have health issues too. Guess what? No car! Life can be a bit boring when you live very simply and not many people are willing to do that. There are many things you can do for free-library, walk in the park. Buy what you need on sale. I find it hard to empathize. Australians are spoiled. Try living in the USA with no medical insurance! Social Assistance in the USA and Canada is almost non-existent.

  • @beachbum2687
    @beachbum2687 Před 4 lety +1

    I applied for a credit card and got declined

  • @Jameskonigchr
    @Jameskonigchr Před 4 lety +1

    Regarding the second couple featured - so the 50k credit card debt is because they chose to take multiple world wide vacations. Unless there are other factors not mentioned, there is no sympathy for their situation nor should they have their debt lowered or forgiven. U racked up debt for a non necessity and now u want the debt removed. No way.. u need to pay off the debt..until its paid off or ur death..whichever comes first.

    • @ykook7000
      @ykook7000 Před 3 lety

      Exactly.....using lm old and sick to get out of debt is ridiculous

  • @gtlegacy8
    @gtlegacy8 Před 4 lety +4

    Ok boomer, How about live within the means. I make just under 800/week after tax, drive a 10 year old car and live like a king compare to them. my credit card is always paid off by the end of each month usually around 500.

  • @jamesgray7301
    @jamesgray7301 Před 4 lety +1

    When I came to Australia 6 years ago I had only about 2000 dollars left to my name. I have since been employed casually for around 25 hours a week and my girlfriend around 15 hours, plus she is a student. Yet we are renting a big house, have two dogs, an old but decent car, we travel twice a year abroad and I have almost 90K on my super. I am sorry, but unless you are handicapped or mentally ill you have no excuse for being poor when you've lived all your life in a wealthy nation. The first guy is German (judging by his accent), so he is a citizen of two nations with some of the highest wages and most generous pensions on earth. I do not feel sorry for stupid people. And he and his partner aren't actually poor. You want to see real poverty, go to Africa and Asia. As for the Filipino couple, I don't know why you guys resent them so much. They've enjoyed their lives and they knew how to play the system. They are clever!

    • @ykook7000
      @ykook7000 Před 3 lety

      Agree. ...also just because they are older or pension age shouldn't get them off Scot free. ..personal responsibility regardless of age

  • @the0point
    @the0point Před 4 lety +2

    Lotto = stupid tax

  • @asher3031
    @asher3031 Před 4 lety +7

    It's called responsibilities, you spend you pay back a simple as is . To much nonsense

    • @youknowbestofall5353
      @youknowbestofall5353 Před 4 lety

      You spend AFTER they let you earn. When cost of living is galloping, while wages stagnate you have less to spend, and then when you cut on essentials (electricity, heating, etc.) in order to pay the rent, you start to pay essentials by credit card. Then, society blames the victims for the ROTTEN system it has created.
      This is called "FAIR GO" in "THE LUCKIEST COUNTRY"!

  • @chiquicat1
    @chiquicat1 Před 4 lety

    It disgusts me to watch so many personal loan ads on TV leading up to Christmas. This should be regulated.

  • @coopsnz1
    @coopsnz1 Před 4 lety

    High taxation is why Australia has highest household debt in world

  • @deelaz
    @deelaz Před 4 lety

    Paying minimum debt is endless debt

  • @AJonVolk
    @AJonVolk Před 4 lety +11

    Don't buy what you can't afford, if things you need are out of your means increase your means, if you're in a crap situation such as these you'll have to go through hard times to solve it.

  • @LeGrandeCappucinna
    @LeGrandeCappucinna Před 4 lety

    That’s terrible :( I feel sorry these people.

  • @angelaorzlowski3786
    @angelaorzlowski3786 Před 4 lety +2

    Here's a clue....... Cut up your credit cards! And financing your overseas trips with plastic, what can I say.

  • @A.I.-
    @A.I.- Před 4 lety +9

    I really don't understand what is the fuss with "going on holidays" and "traveling around the world".
    Yes, you've seen the Pyramids, the Eiffel tower, the Statue of liberty, how are you a better person than before not seeing it?
    I mean, if going on holidays will give me special skills and develop my skills, then I would make it a priority. A lot of people hate to hear it, but seeing the world is a pointless endeavor, or that the return on your investment is very minuscule to the point that it is a waste of time, energy and money.
    But whatever float your boat... I just don't want to hear the complaints of the consequences of people's pointless endeavors.

    • @DesA-hj7ms
      @DesA-hj7ms Před 4 lety +2

      A.I. Exactly right. Going on holidays is a luxury. If you can afford it you can go. However if you can learn a language leverage that to improve you career at home. Then by all means

    • @maddogmorgan1
      @maddogmorgan1 Před 4 lety +5

      What a sad little life you must lead...

    • @A.I.-
      @A.I.- Před 4 lety +1

      @@maddogmorgan1 I'm retired at 38yo financially free... while you're stuck in rush hour traffic and you will be working till you drop... believe me, your life is more sad than mine.

    • @birgittabirgersdatter8082
      @birgittabirgersdatter8082 Před 4 lety +4

      A.I. Retired to do what for the next 30 years of your life? You sound like a very narrow minded and boring person.

    • @A.I.-
      @A.I.- Před 4 lety

      @@birgittabirgersdatter8082 Well you wouldn't know because you spend 38hrs a week at work. When people don't work anymore, what do you think they do??? I've experience more out of life because I'm not stuck at work.
      You don't even have the luxury to pick a good book and read it, ironic you use the word "narrow minded" for someone who doesn't have the time to read a book.

  • @darryl1617
    @darryl1617 Před 4 lety +7

    So sad and the interest rates on credit card debts are criminal.

  • @mohacs1000
    @mohacs1000 Před 4 lety +1

    We can't all rely on good publicity seeking banks cancelling our credit card debts when we get old and destitute.

  • @haruhisuzumiya6650
    @haruhisuzumiya6650 Před 4 lety +3

    It'll take me max 6 months to pay my total debts

  • @natashabush7427
    @natashabush7427 Před 4 lety

    $800 a week thats a lot of money for 2 people to have. I dont understand how they couldnt make that work.

  • @pascalw.paradis8954
    @pascalw.paradis8954 Před 4 lety +1

    Bankers are CROOKS ,,,,, Bankers and Lawyers are known to be not the greatest peeps in the human pool.

  • @harrisonwintergreen1147
    @harrisonwintergreen1147 Před 4 lety +4

    Australia needs Dave Ramsey

  • @jackcullen69
    @jackcullen69 Před 3 lety

    Treat credit card amounts as cash. Track your spending and cash flows. Not rocket science. Shame on the traveling couple. The guy who still wants to pay, on the other hand, deserves respect