Anytime something becomes normalized, people start questioning it less and less.

And one thing in the financial world that is so normal is credit cards.

But there are some crucial things that you need to know about how this industry works.

So make sure to subscribe, like, and share this episode with a friend. So first and foremost, credit cards are not a helpful spending tool for

consumers. They're a multi-billion dollar industry. Yes, credit cards are a form of debt. You borrow

money, you pay it back later. And if you don't pay the full thing, you're paying interest on top

of that. And so it's just really a way for people to either play a game,

trying to get points in airline miles and all this stuff over here,

or they're like literally using it because they have to make ends meet

and they end up living beyond their means.

And the credit card industry is there to catch their slack versus their own money. So it's really this detrimental part of the financial industry that

everyone is like, oh, it's great, it's fine. But I'm telling you, living an autonomous life,

like where you have a say over every part of your life and you're not borrowing money from

the bank, not only do you spend less, but there is so much peace in your life when it's just you dealing

with your money. So, listen, we have established that, yes, credit card companies, they exist

to make money and they're very, very good at it. So let's talk about how they do this.

So like I said, the first way is interest payments. I mentioned that earlier,

but if you pay your bill off every month, you may not be feeling this pain. But what we're seeing

more and more is people are not paying their credit cards off every month and they are accumulating

more and more debt. And so what happens is you end up paying interest, like basically a fee on top of what

you already owe. And that interest

with credit cards can be as high as 18, 22, sometimes 25%. We're seeing like it's insane the amount

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