The Secret History of the Credit Card (full documentary) | FRONTLINE

FRONTLINE and The New York Times examine how the credit card industry became pervasive, lucrative, and politically powerful. (Aired 2004)

Millions of American families use their personal, general-purpose credit cards to make ends meet. With no federal laws on the amount of interest or fees that can be charged, credit cards have become the most profitable sector of the American banking industry.”] In “Secret History of the Credit Card,” correspondent Lowell Bergman uncovers the techniques used by the industry to earn record profits and get consumers to take on more debt. Some experts argue the profitability of credit cards began when the banking industry successfully eliminated a critical restriction: the limit on the interest rate a lender can charge a borrower. Deregulation, coupled with a revolution in technology enabled the almost real-time tracking of personal financial information and the emergence of nationwide banking, facilitated the widening availability of credit cards across the economic spectrum. But for some, the cost of credit is often far greater than it appears.

#Documentary #CreditCards

Funding for FRONTLINE is provided through the support of PBS viewers and by the Corporation for Public Broadcasting. Major funding for FRONTLINE is provided by the Ford Foundation. Additional funding is provided by the Abrams Foundation; the John D. and Catherine T. MacArthur Foundation; Park Foundation; and the FRONTLINE Journalism Fund with major support from Jon and Jo Ann Hagler on behalf of the Jon L. Hagler Foundation, and additional support from Koo and Patricia Yuen.

[barttfisher]

The US economy cannot survive without continuous credit and debt creation. The FED will print more money and the average American will go just that much further in debt. Meanwhile, foreigners lust for the greenback. Their economies are in worse condition than the US... if that's even possible. Someone is going to be left holding the bag...

[kortyEdna]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[AllisonSherman]

This administration is putting many families in difficult situations. A lot of people are financially struggling to live, put a roof over their head and put food on the table. Things are getting worse these days, if you don't find means of multiplying your money you might wake up a day to realise you didn't plan well for yourself and family…

[davidhite]

This documentary needs to be played to every high school student in America.

[chriswalter]

To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?

[boris]

My Father told me if you don't have enough money to buy something out right then don't buy it, or even worse borrow it.

[youtubesucks]

It’s painful knowing this was filmed in 2004 and what was waiting for them a few years later.

[martelvonc]

My parents did not teach my sisters and I anything about finances. My dad was of the opinion that family finances were none of our damn business. I had to learn every thing I know from hard knocks and a career path into the banking industry. I also read voraciously every thing I could about budgets, credit cards, loans, so that I understood what was happening. We need to do better by our children by educating ourselves.

[rebelsroguesco]

9:50 “It’s nice to be able to spend what you don’t have.”

🤦‍♂️ That’s the problem.

[cancel.lgbtq.]

Just paid off my $66, 000 consumer debt earlier this year. Best feeling ever being debt free.

[FidoHouse]

Amazing report. Released 19 years ago but so worth watching. Glad you posted it. Will share link to it with others.

[edithpiwowarski]

This documentary should be played once a week all over the United States… and yes, it should be played in the schools and the colleges

[j.davidbogue]

My grandfather’s last words to me were:
“Don’t spend money you don’t have yet.”
I took his advice. I have no credit cards.

[ajaychebbi]

I am so glad all the Old PBS documentaries are available on youtube! A lot of them are seminal works.

[pvtjohnson]

Can you imagine living without a credit card, I've done that my whole 57 years.

[jhnpttny]

I have been following Ramsey lately and trying to pay off and cut up credit cards. This is amazing motivation!

[eternalcowboy]

The college loan industry took good notes when this originally aired.

[AwokenEntertainment]

It's crazy how we don't learn any of this in school..

[grumpygardner]

Back in 82 Credit Card companies offered my girlfriend MC, Visa and various others. I advised against it but she took bait. The trap back then was that if you 'developed a Credit History' you'd build a healthy FICA score which eventually became necessary to damn near to anything in as much as get a job.
The banking industry created this money making scheme just for themselves and created the FICA system to insure everyone would have to be involved in order to do the most basic of financial matters.
Today, I pay cash for everything and my FICA is shit because I don't use credit.
It screws with everything in as much my Car Insurance rates. And I can't even argue it to those I need services from .
Screw the Financial Industry.

[IT]

I think one of the biggest issues with credit cards is the lack of education when it comes to how to use them properly. Our schools in the US teach next to nothing when it comes to personal finance. A lot of people get into credit card debt because they simply don't know any better. I got into credit card debt in college because I wasn't aware of the consequences of not paying my card off. The whole buy it now and pay it off later deal seems pretty harmless if you aren't aware of the interest rates. Once I was told how much it costs to be in credit card debt, I immediately started paying my card off and I've never been in credit card debt since. Credit cards can be an extremely valuable asset if you use them responsibly and pay them off each month, but so many people are never taught to do this. Credit card companies don't want consumers to know that.