Interviewer Gives 20 Y.O. Kid A Reality Check Who Doesn’t Understand How Credit Cards Work And Made A Joke About It

• By Malaika
• 6 months ago
• 4 minutes read

Credit cards can be very useful.

Credit cards can be extremely beneficial for managing finances, making purchases, and building credit. However, they do have potential risks and drawbacks that must be carefully considered. Understanding how credit cards work and using them responsibly is critical for maximising their benefits while avoiding financial pitfalls. Furthermore, one must exercise caution when using it. It is extremely easy to rack up a bill without even realising it, so make sure to check your debt every chance you get.

Credit card debt is a common financial burden that many people must deal with. It can be difficult to repay due to high interest rates and low monthly payments. Finding effective strategies to pay off credit card debt is critical for achieving financial stability. One effective strategy is to create a budget and prioritise paying off the cards with the highest interest rates first. A financial advisor or credit counsellor can also help you manage and reduce your credit card debt.

However, some people do not understand the distinction between credit card debt and credit card limits. You can see one such person by scrolling down.

Source: TikTok

Credit cards are no doubt useful if you know how to use them correctly.

However, not everyone knows how credit cards work,, just like this young woman.

She didn’t know the difference between credit card debt and a limit.

As you can probably guess, she racked up the debt without understanding what it was.

Not only that, but she seems to have a poor grasp on basic finance and budgeting.

Via TikTok

Her parents are basically the ones helping her out in every situation.

The interviewer was quite flabbergasted by how calm her demeanour was.

Credit card debt and credit card limits are two closely related but distinct concepts in personal finance. Credit card limits are the maximum amount of money a cardholder can borrow from a financial institution, whereas credit card debt is the amount owed on the card.

Understanding the distinction between the two is critical for successful adulthood. To avoid overspending and accumulating debt, you should be aware of your credit card limit. You can effectively manage your finances and avoid unnecessary debt by being mindful of your spending habits and sticking to your budget.

Via TikTok

I am not sure about 100%.

I mean, most people learn this in school, no?

Even if you don’t learn it in school, we have the Internet after all.

Her parents need to do better.

How did she get such a limit anyway?

Via TikTok

I am actually scared for her.

This is why I am still hesitant about getting a credit card.

Most 20-year-olds would know this.

I wonder what her thought process was.

I am quite amazed at her, to be fair.

That is my question as well.

Via TikTok

When did you discover the distinction between a credit card limit and debt? Or do you think she is an anomaly here? Do you believe her parents are enabling her by paying off her debts? What would you have done if you were her parents? Comment below to let us know, and don’t forget to share this story with your friends so they can participate as well.