Minimum Payment Trap

[goharsguide]

definitely should’ve used a lower credit limit as an example ($5, 000 is unrealistic), but the overall point still holds!

[GrantSkrbin]

Whenever I grow up ima come back to these videos

[sparkyfox]

My dad did a great job of teaching me this when I was in elementary school. He borrowed $10 from me that he didn’t actually need and said he would pay me back at 10% interest daily. For a week he gave me $1 back, and when he asked what I owed him I said $3, then he broke it down and explained that as he was paying down the minimum balance, he still owed $10 and lost an additional $7. He was great at those little lessons and giving them in such a way as to not actually stress me out

[TheSculptr]

moral of the story - dont spend money you don't have

[allureorbitron]

Thanks, Gohar! One more thing I want to add is that this is a concept called amortization for your credit, and other companies do an amortization schedule, which they share with you, in a similar process as well if you borrowed something from them (like a car in an auto loan). Eventually, your payment towards the principal WILL get higher and higher, but at first it may seem like a lot, especially since the interest rate is divided among the time period you agreed with them on, leading to lesser principal payments at first. Keep your money in check and don't think what you owe is the only thing you pay (interest is called interest for a reason!).

[albedussy]

The best advice I’ve ever gotten for my credit is really simple: only use 10% of what’s available to you, for example if you have $2, 500 available, don’t use more than $250 without paying it off. And pay it off as soon as you use it (within reason, I don’t wait longer than 2weeks) use it like an extension of your debit card. I have a credit score of above 800

[RANDOM_]

I’m young and began watching your videos about time management, they helped ngl! I’m following you and it’s honestly helped me manage life better, thank you :]!

[bananadude-]

You actually saved my ass thanks bro 🙏

[FindaMusi]

I use credit card to buy what I need, and I can afford to pay back without paying any interest. It's the best way to build up my credit score so that I can get a loan if I need in the future....

[EricMichell-xk]

An easy way to avoid this is by not balling out on your credit card 😂😂

[quadbit]

I find it funny that this video popped up in my feed about 5 days after I got my first credit card. I've been playing it smart with the 30% or less on my 250$ limit. I mainly use it for things like my cell bill and other smaller bills. I plan to pay it back if it nears the 30% mark or 2 weeks to a month depending how much is used. I'm treating it like a super limited debit card within my normal budget (It's actually helping me budget better that with my debit card). I'm 18 right now and hope that I'll have a decent score in a few years for either an auto loan or even further down a home loan in time. I never really watched your videos directly for the credit tips as I was 17 at the time not worried about it but, I'm glad you're back in my feed if I ever learn something else new about these cards I didn't know from the last half a year of looking into credit/loan stuff. 😅

[mariusy]

The first time I got a credit card, I read the contract and realized that the minimum payment was pretty much equal to the interest. I never carry a balance.

[Moldy_Mask]

My father always told me: ''never ever in your life even think of buying things to credit. Only do it with a house or a car in case you need to drive to sign a 5 million deal. Otherwise, you won't even consider it''.
He worked as a teacher on a low income neighborhood and saw a lot of ex students carrying around debt for decades because they went on vacation with a credit they couldn't pay back.

[TheGreatPoser]

I use credit card to buy what I need, and I can afford to pay back without paying any interest. It's the best way to build up my credit score so that I can get a loan if I need in the future.

[MFTW]

I don't understand why people do this to themselves.

[Constrct]

Conclusion: dont screw with a credit card, only pay for what you can afford.

[GrogBungalo-xmkr]

This guy is the life tutorial, he’s like the tips on the loading screen.

[empyreanRBLX]

The fact gohar makes a bunch of drawing that take time show that he cares

[DaBaconShorts]

is no one gonna talk about the middle bag 💀 in the intro

[wildcat-]

Ngl gohar saved me on my DECA state testing for personal financial literacy! Thanks 😂