Years ago my husband and i had nearly $30k in credit card debt, two houses and two mortgages.... we got rid of it and have 1 house, a small mortgage, and no credit cards or other debt. Life is much better and still cheaper as we dont pay interest to live. We find it easy to save for the things we want and need as we don't live outside our means and save money every week.
This video is a reflection of why I still drive around in a pickup truck that's over twenty years old. Every time it broke down, I paid cash to fix it. Nice documentary.
The new stuff is far worse. No comparison, that's every manufacturer included. I work on brand new stuff a hell of alot more often than I do older pick ups in my shop.
@@TheGreyGhost_of43rdbecause newer cars are being built to not be repaired. Soon you will need to take out the headlights in the trunk to open the hood to get to the engine. Id laugh at the joke but it is comming true
I remember buying my second-hand car from the dealer for $14,000. The look of disgust on his face when I told him I would pay cash in full. He was seething with anger and sulking because I wasn't signing up for a payment plan. That's the greedy world we live in thanks to debt.
I have heard from car dealerships that they actually benefit more from financed cars today vs cash paying folks. They can often manipulate the numbers when financing is involved. #1 rule never tell a dealer "how much your willing to pay per month" this allows them to take advantage of you so best to refuse to answer it. Also be ready to walk when they won't negotiate and most won't unless it's financed.
This video should win some kind of award. So informative, easy to understand and put together so professionally. It hits the target for being relevant for the times we live in. I hope it is viewed by people, that are in need of help, when it comes to their financial situation. 👏🏻👏🏻🇨🇦
I’ve seen the absolute worst advice in Canada when it comes to personal, consumer finance. Everything is structured around debt. It has fundamentally reorganized the way we view purchases and the way we view goods. We no longer even see a price tag, but a bi-weekly or monthly financing rate and an interest rate. I’ve seen financial ‘experts’ tell seniors to leverage their home equity in a line of credit to finance purchases, effectively using their hard earned equity to only further plunge into the hands of predatory financial institutions when they can least afford it. We have not only a debt-based economy but are rapidly developing a debt-based mindset, if it hasn’t already developed to full maturity. This was a very interesting and informative video and is in line with the personal finance guidance I’ve been following lately. The grand ship may never correct itself, but if you can take control of your own finances and minimize your debt as much as possible, you’ll be in a much better and secure position.
Yea banks are also financially incentivised to push barly affordable debt. And only offer high fee investments. Which is why I do my own investments and avoid the banks like the plauge
Just wait until we all realize the global Fiat (forex exchange) is dependent on political stability and see what happens when countries stop trusting each other. Global velocity of money might pull us back down to Earth for a chat with reality ft Mr. Mises!
Great video. We became debt free a few years ago after learning about Dave Ramsey. I can’t imagine us ever using credit again. “The borrower is slave to the lender”
This is a great documentary but the one thing (which is key) that i was hoping to hear more about, is about our broken money system and the role of the central banks in devaluing our currency, reducing our spending power by 50% every 10 years... the increases in taxes to make up for the deficits created by government spending. In a system where money can be soo easily created with a printing machine, there is little incentive to save, currency is depreciative
Agreed, that too deserves attention, I wonder if Canada has the equivalent of what Edward Griffin explained in regards to US federal banking system, or if the Canadian govt is impacted by it somehow, or is IMF enough to achieve the same goals.
Doug, you spoke with me via zoom during the pandemic about teaching debt to kids and I could tell very quickly that this is your passion. I appreciated the time you gave me and I've shown a few of your videos in my classes (magic $20 bill love it) and I love this! I'm gonna steal it too for my teaching! ;)
Thank you so much for putting this all in one video! Since I was in college starting in 1986 I saw debt as a trap and have avoided it my whole life. The type of person I am is the one who wants to save the money first then buy. If not for the constant inflation from central bankers, this would be a winning strategy!
Hey Doug, I began listening to your podcast in 2020 after a life altering series of personal circumstances that left me financially crippled. I listened to every single episode multiple times and four years later have established myself extremely well. Your principles on debt management (avoidance) have been instrumental in this. This documentary is just further testament to other middle class Canadians on how to mitigate debt and to navigate life living frugality and responsibility. Thanks for everything.
Took me a long time to get out of this debt addiction but I was able to stop buying on my wants and only for my needs. Will be able yo retire now comfortably without a company pension plan. We live in a society where it seems everyone wants to up one another. I too gell in this trap. Glad I saw the light in my mid thirty's.
Got my license in ‘86. Followed a rule of never spending more than $1,000/year on cost of vehicle. Not $1,000 per month. That meant used Japanese cars. That lasted up to 2016 when I bought a new vehicle. I will drive that vehicle into the ground. Nonetheless, I’m forced to change the #’s in my rule to $2,000 -$2,500 per year, depending on how long it lasts before it dies.
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” - Ludwig von Mises
Perfectly explained brief documentary about credit and debt accumulation. I also understand how inflation grows through debt. Nice that I have stumbled upon this great documentary.
I just paid cssh 4 my second house because i stopped using credit. It took me 7 years and the houses werent castles but we are free of debt. We fixed up the inside and left the outside alone with good security. Tax bills ultra low. When u stop worrying about what other people think u create a new kind of freedom.
Thanks for response, Ive been inspired this year by the book ‘The richest man in Babylon’ and I’ve been on a role ever since. Please let me know if you recommend any financial literacy books?! Take care.
@@debtntaxz5538 1. Straight Talk On Your Money by Doug Hoyes ;) 2. The Wealthy Barber Returns David Chilton 3.Money Talks or anything else by Gail Vaz-Oxlade 4. Happy Go Money by Melissa Leong 5. The Credit Game - Richard Moxley 6.Wealthing like Rabbits by Robert Brown 7. Banks Behaving Badly and many many more and not necessarily in that order... Hope that helps.
I agree that debt can fuel inflation, but the opposite is true also. When credit is unavailable, it leads to deflation. So the solution is education and restricting term length of loans. The main driver of car loan sizes is that people are rolling over balances on a car they traded-in to get a new car. I believe that is directly related to extending the terms of the loan to 84 months (7 years) like you said in the video. We should limit it to 60 months (5 years) for a car loan. I know politicians are considering extending home mortgages to 35 or 40 years. We should not vote for those politicians because we should not use financing terms as a way to improve affordability.
The idea of being under and rolling over debt from 1 car to another just sounds retarded to me. That said, some people think paying a 16K car loan over 6 years at 21% at the min payment is a good idea. Ya, not me, I payed that 16k off so fast at month 3 they told me to skip 6 payments, I didn't skip one, and payed it off ~14-17 months throwing 1/2 a pay check at it, at a time.
This is a fantastic video. I also enjoy your podcast which I review every Saturday. This video is so informative and well-made. I am watching and listening from Southern California in the USA
This excellent presentation gives testimony to the degradation of the human species to the degree that they may be defined as "Entities that acquires things!" This is yet another huge nail in the coffin of a species which has lost all connection to the purpose and meaning of life and thus of what being a human entails. It's axiomatic amongst those cognescenti that man is primarily a spiritual being enclosed in a physical form. But when that principle is abrogated, and physical existence is prioritized over spiritual values, you inevitably arrive at chaotic social breakdown! We've arrived to a point where it's a "Dog eat dog," or "Every man for himself" type of existence, ideas that are so pervasive that after a few decades, this pathological behavior pattern is the accepted norm.The only thing guaranteed here is a life of anxiety, uncertainty and depression!
@@Hail2th3k1n6I never knew this was an option. Might actually be a good idea in some situations like when they won't budge on prices when paying cash. Wonder if they charge a penalty for early payoff?
Its the same with food. We get the hard options(saving, investing, health food, cooking at home) vs easy options (fast food, snacks, using borrowed money, plastic/phone). This is why peole get im debt. Growing up it was not this easy to get things at the speed we do now and ease. Also people are bad at saving. Most people think they have to spend money to have a good time.
Weird, houses are becoming larger in Canada? Here in Sweden there is a long trend of buying up large apartments and splitting them into smaller ones, sell at a massive markup. Most people I know live in a smaller apartment than they grew up in, even though their salaries are better than their parents', even after inflation.
Across North America, yes. It's been from both a general demand for bigger homes and cost of supplies. With land and building costs getting more expensive, builders are making homes bigger to create a bigger profit margin.
I got a car for too much money, regretted it immediately, and am returning it since it is still within their return policy date range. Online says they always honor it, so I am doing that and got me an ebike to travel the couple miles to work and back. Lots of good routes. Work and Church are the only two places I go and both say they are about a 30 minute bicycle trip to either. Should be faster with an ebike and with no debt either
Realizing at 29 and owning both my vehicles and having 0 debt no loans no credit cards meant I was doing good made me incredibly sad for the state of our economy
Addiction to debt by choice of lifeatyle is one thing, but alot of people use debt to blatantly survive. It is an evil cycle slavery for many. Having to take it, and more on, just to pay rent and get food.
Evil starts when you try and control others feelings...one common way is when you try to prove to them that you are better, that's when materialism sets in, if you just live your life in the best way for yourself and without trying to affect others selfishly you will not only be the happiest version for your self but also for the entire society and ironically ultimately consequently others will then be enthralled by this behavior in varying ways but more powerfully and positively than some materialistic expenditures you can spend your time on.
It's not our reliance. Rather, the system is designed to force people to rely on it. Get the banks 🏦 out of the equation and products/services would be based on what consumers actually earn and save instead of how much debt they can get themselves in. 😳
Not true. We would all agree through collective vote 🗳️ how long it would take to pay off in day, months, years based on a minimal wage to get item. We would have to agree on realistic time lines. Simple.
We'd go back to how they described at the beginning of the video. We'd also have slower economies and probably lower paying jobs because our pay is also affected by the debt and interest our employers (and everyone in their chain) has.
Crédit promotes waste. Easy come, easy go. If one has to save and wait to obtain something, one will have a tendency to maintain that product. The converse is also true!!
My reliance on credit saves me 1-5% on all purchases and I haven't paid a cent of interest on it in my life. Its about being responsible, having savings built up, and not living beyond your means.
This is a great video. Here is also some random advice: Have an emergency saving fund with at least a few month's savings. Never buy brand new car, even a slightly used one saves thousands. Always keep an eye on how much the whole lone is to pay off for anytime you use credit, do not only look at how much it is a month.
It's super hard for me to imagine how the financing services offered during the 19th and the first half of the 20th century were managed without computers or even digital calculators.
You can summarize this entire video by showing the Kylo Ren clip of him asking for more and more and more... just loop the clip and label Kylo as the banks, builders and consumers.
Where did the buy now pay later and payday loan data come from? Id think the total debt is a lot higher because that number isnt disclosed as far as i know.
My husband over the years has done something I've never heard of anyone else doing, but I think is smart. He borrows money, but only if he's got enough to pay off the borrowed amount. This gets him the item, he has the money he started with(gaining interest), makes payments out of pocket, improves credit score and has the money to pay off the loan if SHTF or a more important family emergency happens. This is a slow go, stable life strategy. OPM can work with patience and planning.
You left out the part where the borrowed amount also has interest that you must pay, likely negating any interest you are earning…it’s a wash mathematically and you’ve incurred risk.
That can work and is a strategy employed by rich folks. If the money you have now can earn you more than the interest on the loan, it is a winning strategy. Also money now is more valuable than money later, due to inflation You do need to have access to good lines of credit - no subprime crap - and keep track of all the outstanding balances to make sure that you indeed have the correct reserves. If you follow that, then by all means use other people's money and keep your working for you.
In recent Cdn Tire flyer, there is a smeg toaster listed for sale at $223.99 reg price 279.99. It is not a typo. OR 9.34 per 24 months. This toaster is the Rolls Royce of toaster. I will be keeping my 10 years old toaster.
We don't have the option to refuse the credit. The system is set up that way. No credit score: no renting, no mortgage.....It's not a choice on the part of the end user, it's imposed by the banking system.
I remember trying to buy a car. I made my offer on one that been sitting for months. Man wanted his listed price sending me a link to where I can get a loan and thus afford his price. No thanks. I only wanted to buy for what I offered. Saw same car still sitting on the market several weeks after that.
Gary's Economics explains this thinking and how the owner of debt get people to pay them their income, and so the owner of debt get more wealth. Banks create money in order to make loans. The funds are used to bid up prices. That means inflation is created.
The borrower really is the slave to the lender. People choose to go from debt free to ten of hundreds or hundreds of thousands of dollars in debt in less than a few minutes when they obtain a loan for a car or a home. Allocating money they haven't even made yet for the next 6 to 30+ years. Yet they don't see it as such because it's acceptable.
@@Dieselpwr Your exactly the kinda guy I'm talking about, living in the positive. Congrats on the new truck, take great care of it and it will take great care of you!
Bummer, I was expecting a movie about the impossibility of FIAT currencies and the debt-based monetary system we these days have... But guess this is one part of that equation too. Good movie and spot on!
This is a good video that explains how things work but it gets a bit biased towards the end. Credit has been around for thousands of years. It's older than money itself. And while I do think that credit these days puts a premium on things, it's not as bad as this video makes it to be. In the long-run supply isn't static and supply goes up if and when profit margins go up so by implication credit shouldn't make things that much more expensive. The problem in Canada is the oligarchies which control the prices to an extent especially in the short-term as well as excessive Government regulation and bureaucracy which helps said oligarchies by increasing the time to respond and adjust but only in nominal terms thus increasing barriers to enter the industry (in real terms you stay the same because the bureaucracy makes it harder to do real things on the ground like houses or start new companies). One other problem is labour unions with too much power and skewing real wages. These people (within the unions themselves not the workers who pay union dues) make so much money that they would be considered upper middle class. That's how much power they have and they leech from the hard-work of laborers.
I will only use credit if I have at least 4 or 5 times the resulting debt in liquidities. That way I can easily pay off the debt without paying interest. Like I don't care about carrying debt longer if the interest APR is under or very close to inflation like under 5% APR.
The problem is not debt as such. It's interest that is the problem. Credit is a vey normal thing and shouldn't be a problem. It's the interest that is inflating everything.
I grew up and went to school in Hamilton, Ontario throughout the 70's and 80's. Barely any discussion in school about money, debt, what it is or how we use it. I don't know why the province run education system ignores the one thing that we rely on most to live in our society. I suspect that if everyone knew about our money system the voting public would expect a more competent government. Why ruin a good thing?
Is it price inflation or is it legitimate inflation and price is merely the manifestation of inflation? I think Friedman said inflation is a monetary phenomenon. Obviously trade wars or sanctions etc can led to price spikes but also 40 years of lower interest rates forces assets higher. Since banks can create money out of thin air with zero reserves during the rona i remember of course it’s inflationary especially since the government rolls the debt over and just expands it.
Debt is only good for assets like a house. Debt has a neutral effect for housing because the home appreciates pretty well over time. Other that housing, it’s either too risky long term or bad debt.
US household debt is actually down significantly from its peak in 2010 of about 101% now it is only about 62% which means it's not at all a problem lol. Plus most household debt is long-term fixed rate mortgages that are below inflation so it's essentially free. If we still had the debt we had in 2010 US household debt would be over 28 trillion dollars so a record 17 trillion dollars is nothing. This is equivalent to a household making $100,000 a year and only having a total debt load of $64,000 😂 and at worst the debt load in 2010 was $101,000.
I have no debt everything is paid I have a new truck a old truck and a home But I can’t buy anything because the prices now are crazy because everyone is willing to pay a premium
Any economic/social system will always have struggles. It is human nature for individuals to better their position in life. Therefore you must limit the scope and power of any institution, that goes for everything from government to citizens. This is why money, the mechanism for nearly all exchange, must be decentralized and not controlled exclusively by a relatively small group. The problem still exists: how does the decentralized defend against a large centralized entity? Maybe there needs to be some sort of fail safe that compels the decentralized to only band together (centralize) in order to defend against the centralized actor? Research Bitcoin.
You mean the make believe "money" invented by a fictitious character 26 years ago....that can only be traded on a machine whose power supply is controlled entirely by the very people we wish to break from? You mean that bitcoin? Can you name one gas station, grocery store, apparel store that has taken bitcoin anytime in 26 years? Bitcoin is spelled CBDC and Satoshi is a resident of Langley. You haven't seen nothing yet. Wait til it comes on line.
14:03 seeds to the womens rights movement 😂 divorce your husband, work 3 jobs, get a tattoo, shave a part of your head, YEP! And you have your own car!
This documentary is absolute GOLD and should be part of every financial literacy class in every school!
Thank you very much!
Wont happen
No.. They won't let people know about this. Let alone teach financial literacy in school.
@@DebtFreein30From what film is the apprx ten seconds video from 38:24 onwards?
I agree finicial education needs to be taught in western countries and APR , credit card , student college debt and such works .
Years ago my husband and i had nearly $30k in credit card debt, two houses and two mortgages.... we got rid of it and have 1 house, a small mortgage, and no credit cards or other debt.
Life is much better and still cheaper as we dont pay interest to live.
We find it easy to save for the things we want and need as we don't live outside our means and save money every week.
This video is a reflection of why I still drive around in a pickup truck that's over twenty years old. Every time it broke down, I paid cash to fix it. Nice documentary.
The new stuff is far worse. No comparison, that's every manufacturer included. I work on brand new stuff a hell of alot more often than I do older pick ups in my shop.
@@TheGreyGhost_of43rdbecause newer cars are being built to not be repaired. Soon you will need to take out the headlights in the trunk to open the hood to get to the engine. Id laugh at the joke but it is comming true
Yeah, I'm with these guys, your old truck is probably sick as. Old > New even if its mids.
Good deal!
"He who goes a borrowing goes a sorrowing." - Benjamin Franklin
The government goes borrowing the citizen goes sorrowing.
@@bluedragontoybash2463 lol, well said.
I remember buying my second-hand car from the dealer for $14,000. The look of disgust on his face when I told him I would pay cash in full. He was seething with anger and sulking because I wasn't signing up for a payment plan. That's the greedy world we live in thanks to debt.
I don't know why you followed through with that purchase. I'd have taken my money elsewhere.
Many are this way
I had a similar experience.
@@homergump3 i mean he probably really wanted or needed the car, regardless of the vendor's attitude.
I have heard from car dealerships that they actually benefit more from financed cars today vs cash paying folks. They can often manipulate the numbers when financing is involved. #1 rule never tell a dealer "how much your willing to pay per month" this allows them to take advantage of you so best to refuse to answer it. Also be ready to walk when they won't negotiate and most won't unless it's financed.
This video should win some kind of award. So informative, easy to understand and put together so professionally. It hits the target for being relevant for the times we live in. I hope it is viewed by people, that are in need of help, when it comes to their financial situation.
👏🏻👏🏻🇨🇦
I’ve seen the absolute worst advice in Canada when it comes to personal, consumer finance. Everything is structured around debt. It has fundamentally reorganized the way we view purchases and the way we view goods. We no longer even see a price tag, but a bi-weekly or monthly financing rate and an interest rate. I’ve seen financial ‘experts’ tell seniors to leverage their home equity in a line of credit to finance purchases, effectively using their hard earned equity to only further plunge into the hands of predatory financial institutions when they can least afford it. We have not only a debt-based economy but are rapidly developing a debt-based mindset, if it hasn’t already developed to full maturity. This was a very interesting and informative video and is in line with the personal finance guidance I’ve been following lately. The grand ship may never correct itself, but if you can take control of your own finances and minimize your debt as much as possible, you’ll be in a much better and secure position.
Yea banks are also financially incentivised to push barly affordable debt. And only offer high fee investments. Which is why I do my own investments and avoid the banks like the plauge
Just wait until we all realize the global Fiat (forex exchange) is dependent on political stability and see what happens when countries stop trusting each other. Global velocity of money might pull us back down to Earth for a chat with reality ft Mr. Mises!
I started falling into this trap and it's a bad trap. Now I have almost no reoccurring payments and it's way better.
Great video.
We became debt free a few years ago after learning about Dave Ramsey. I can’t imagine us ever using credit again.
“The borrower is slave to the lender”
That's also in the Bible
I'm so glad I paid off all my debt in 2022🎉 (Credit Card Debt and Auto Loan)
Yeeh. Im in the clear next year.
Finally a documentary about a phenomenon I've been preaching for over a decade. Thank you for this!
Glad you enjoyed it!
This should be taught in schools for sure!
Thank you all for taking the time to watch, like, subscribe, and especially for leaving your thoughts in the comments!
This is a great documentary but the one thing (which is key) that i was hoping to hear more about, is about our broken money system and the role of the central banks in devaluing our currency, reducing our spending power by 50% every 10 years... the increases in taxes to make up for the deficits created by government spending. In a system where money can be soo easily created with a printing machine, there is little incentive to save, currency is depreciative
That's another story to be told in another documentary!
Agreed, that too deserves attention, I wonder if Canada has the equivalent of what Edward Griffin explained in regards to US federal banking system, or if the Canadian govt is impacted by it somehow, or is IMF enough to achieve the same goals.
💯
Consumer debt is indeed concerning, but when compared to the scale of central bank and government debts, it almost seems minor.
Watch Zeitgeist. It'll explain everything.
Doug, you spoke with me via zoom during the pandemic about teaching debt to kids and I could tell very quickly that this is your passion. I appreciated the time you gave me and I've shown a few of your videos in my classes (magic $20 bill love it) and I love this! I'm gonna steal it too for my teaching! ;)
Thank you for sharing and watching. Glad to hear that it will be shared in your classes!
Thanks! Steal away!
Thank you so much for putting this all in one video! Since I was in college starting in 1986 I saw debt as a trap and have avoided it my whole life. The type of person I am is the one who wants to save the money first then buy. If not for the constant inflation from central bankers, this would be a winning strategy!
Nice
Exceptionally well done! Without a doubt this should be included in basic education foundations for absolutely everyone.
Congratulations for this great Canadian documentary!
Many thanks!
Hey Doug, I began listening to your podcast in 2020 after a life altering series of personal circumstances that left me financially crippled.
I listened to every single episode multiple times and four years later have established myself extremely well.
Your principles on debt management (avoidance) have been instrumental in this.
This documentary is just further testament to other middle class Canadians on how to mitigate debt and to navigate life living frugality and responsibility.
Thanks for everything.
Kudos, Hoyes Michalos on producing such an informative and impactful piece. It's a must-watch!
"Take your hat off boy that's a dollar bill. "🤣
Took me a long time to get out of this debt addiction but I was able to stop buying on my wants and only for my needs. Will be able yo retire now comfortably without a company pension plan. We live in a society where it seems everyone wants to up one another. I too gell in this trap. Glad I saw the light in my mid thirty's.
Good job bernie. You really figured it out. Always good to see a hard working person making smart moves to retire comfortably.
Great Documentary! much needed viewing for all about financial literacy
Got my license in ‘86. Followed a rule of never spending more than $1,000/year on cost of vehicle. Not $1,000 per month. That meant used Japanese cars. That lasted up to 2016 when I bought a new vehicle. I will drive that vehicle into the ground. Nonetheless, I’m forced to change the #’s in my rule to $2,000 -$2,500 per year, depending on how long it lasts before it dies.
Such a well made take on such an important topic!!! Super informative and interesting too.
Absolutely amazing documentary.
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
- Ludwig von Mises
Because of weak leadership, we’re heading for the latter
Perfectly explained brief documentary about credit and debt accumulation. I also understand how inflation grows through debt. Nice that I have stumbled upon this great documentary.
Best documentary I’ve ever seen on the subject👏🏼
Thank you kindly!
I just paid cssh 4 my second house because i stopped using credit. It took me 7 years and the houses werent castles but we are free of debt. We fixed up the inside and left the outside alone with good security. Tax bills ultra low. When u stop worrying about what other people think u create a new kind of freedom.
Fantastic documentary, more like this please!
There will be more to come down the road! Thank you for watching and hope you do in fact return for more!
Thanks for response, Ive been inspired this year by the book ‘The richest man in Babylon’ and I’ve been on a role ever since. Please let me know if you recommend any financial literacy books?! Take care.
@@debtntaxz5538 1. Straight Talk On Your Money by Doug Hoyes ;)
2. The Wealthy Barber Returns David Chilton
3.Money Talks or anything else by Gail Vaz-Oxlade
4. Happy Go Money by Melissa Leong
5. The Credit Game - Richard Moxley
6.Wealthing like Rabbits by Robert Brown
7. Banks Behaving Badly
and many many more and not necessarily in that order... Hope that helps.
@@DebtFreein30 thank you for all the support and advice. I will look into these books. 📚
@@DebtFreein30omg this! This is exactly what I was hoping to find. I love book recommendations! Thank you!
Outstanding- lots of great information
Amazing work!
Thank you! Cheers!
I agree that debt can fuel inflation, but the opposite is true also. When credit is unavailable, it leads to deflation. So the solution is education and restricting term length of loans. The main driver of car loan sizes is that people are rolling over balances on a car they traded-in to get a new car. I believe that is directly related to extending the terms of the loan to 84 months (7 years) like you said in the video. We should limit it to 60 months (5 years) for a car loan. I know politicians are considering extending home mortgages to 35 or 40 years. We should not vote for those politicians because we should not use financing terms as a way to improve affordability.
The idea of being under and rolling over debt from 1 car to another just sounds retarded to me. That said, some people think paying a 16K car loan over 6 years at 21% at the min payment is a good idea. Ya, not me, I payed that 16k off so fast at month 3 they told me to skip 6 payments, I didn't skip one, and payed it off ~14-17 months throwing 1/2 a pay check at it, at a time.
49:10 Credit (debt) is a burden on your future self ..... So so true, your future self can easily end up with a debt millstone around your neck.
This is a fantastic video. I also enjoy your podcast which I review every Saturday. This video is so informative and well-made. I am watching and listening from Southern California in the USA
Glad you enjoyed it! And thank you for taking the time to watch it!
Economic investigator Frank G Melbourne Australia is following this very informative content cheers Frank 😊 WOW !
Aussie here watching from Wenzhou China
Wonderful documentary
Thank you for watching! :)
This excellent presentation gives testimony to the degradation of the human species to the degree that they may be defined as "Entities that acquires things!" This is yet another huge nail in the coffin of a species which has lost all connection to the purpose and meaning of life and thus of what being a human entails. It's axiomatic amongst those cognescenti that man is primarily a spiritual being enclosed in a physical form. But when that principle is abrogated, and physical existence is prioritized over spiritual values, you inevitably arrive at chaotic social breakdown! We've arrived to a point where it's a "Dog eat dog," or "Every man for himself" type of existence, ideas that are so pervasive that after a few decades, this pathological behavior pattern is the accepted norm.The only thing guaranteed here is a life of anxiety, uncertainty and depression!
CBC Cost of Living reported some car dealers will not accept cash. They want you to finance it.
Yes it's because they get a commission on every finance deal. I used to work in the industry.
Lol give it 15 months and they will start accepting bottlecaps
You can always just take the loan and then the next month pay it off in full.
@@Hail2th3k1n6Would love to know if anyone can think of any caveats to this.
@@Hail2th3k1n6I never knew this was an option. Might actually be a good idea in some situations like when they won't budge on prices when paying cash. Wonder if they charge a penalty for early payoff?
Great job!
Thank you!
Exceptional documentary! Well done. Bravo. 🎉
Many thanks!
This video beautifully addresses the serious issues within the system.
Its the same with food. We get the hard options(saving, investing, health food, cooking at home) vs easy options (fast food, snacks, using borrowed money, plastic/phone). This is why peole get im debt. Growing up it was not this easy to get things at the speed we do now and ease. Also people are bad at saving. Most people think they have to spend money to have a good time.
Weird, houses are becoming larger in Canada? Here in Sweden there is a long trend of buying up large apartments and splitting them into smaller ones, sell at a massive markup. Most people I know live in a smaller apartment than they grew up in, even though their salaries are better than their parents', even after inflation.
Across North America, yes. It's been from both a general demand for bigger homes and cost of supplies. With land and building costs getting more expensive, builders are making homes bigger to create a bigger profit margin.
Amazing doc I love it!!
Thank you kindly!
Are you guys going to do a segment on the 4$T in stimulus and PPP loans that really pushed inflation over the edge?
Wow!!!! This is so educational I have to listen to this information a 2,3,4,5 time. Great job, sir!👍🏿🕍👍🏻
We also vilify and mock anyone who tries to live within their means. I’m upset that they didn’t show what this would look like.
That's a great idea for another one, thank you!
@@DebtFreein30 okay. you are forgiven :). I’m just jealous about the nice polished video.
I got a car for too much money, regretted it immediately, and am returning it since it is still within their return policy date range. Online says they always honor it, so I am doing that and got me an ebike to travel the couple miles to work and back. Lots of good routes. Work and Church are the only two places I go and both say they are about a 30 minute bicycle trip to either. Should be faster with an ebike and with no debt either
I think lifestyle creep would also be a great topic to add to that conversation to balance it out
Realizing at 29 and owning both my vehicles and having 0 debt no loans no credit cards meant I was doing good made me incredibly sad for the state of our economy
Great job boys
Thank you for taking the time to watch it!
Addiction to debt by choice of lifeatyle is one thing, but alot of people use debt to blatantly survive. It is an evil cycle slavery for many. Having to take it, and more on, just to pay rent and get food.
Buy cheaper food. Gets cheaper apartment
Great video
This video should be played in schools
This video was very insightful. Thank you
Thank you for watching and leaving a comment! Much appreciated!
Debt free
One day
Evil starts when you try and control others feelings...one common way is when you try to prove to them that you are better, that's when materialism sets in, if you just live your life in the best way for yourself and without trying to affect others selfishly you will not only be the happiest version for your self but also for the entire society and ironically ultimately consequently others will then be enthralled by this behavior in varying ways but more powerfully and positively than some materialistic expenditures you can spend your time on.
It's not our reliance. Rather, the system is designed to force people to rely on it.
Get the banks 🏦 out of the equation and products/services would be based on what consumers actually earn and save instead of how much debt they can get themselves in. 😳
I'm debt-free, have positive cash flow, and a 800+ FICO.
If we all went back to cash and credit was gone people would not have half the items that they own. Cars, homes etc gone
Not true. We would all agree through collective vote 🗳️ how long it would take to pay off in day, months, years based on a minimal wage to get item. We would have to agree on realistic time lines. Simple.
If credit was gone, everything would get repriced to account for a smaller monetary pool since the vast majority of the global currency supply is debt
We'd go back to how they described at the beginning of the video. We'd also have slower economies and probably lower paying jobs because our pay is also affected by the debt and interest our employers (and everyone in their chain) has.
Indeed. Great content.😊
Crédit promotes waste. Easy come, easy go. If one has to save and wait to obtain something, one will have a tendency to maintain that product. The converse is also true!!
Indeed.
My reliance on credit saves me 1-5% on all purchases and I haven't paid a cent of interest on it in my life. Its about being responsible, having savings built up, and not living beyond your means.
This is a great video. Here is also some random advice: Have an emergency saving fund with at least a few month's savings. Never buy brand new car, even a slightly used one saves thousands. Always keep an eye on how much the whole lone is to pay off for anytime you use credit, do not only look at how much it is a month.
Very well done -- as an aside, how odd it is to hear Ron Butler speak without any profanity!
lol - Ron always speak graciously when being interviewed for our channel and others similar to ours. He hogs the angry for his own channels.
It's super hard for me to imagine how the financing services offered during the 19th and the first half of the 20th century were managed without computers or even digital calculators.
In Mesopotamia, 5000 years ago, they used clay tablets. I'm sure they were doing fine 100 years ago
You can summarize this entire video by showing the Kylo Ren clip of him asking for more and more and more... just loop the clip and label Kylo as the banks, builders and consumers.
Where did the buy now pay later and payday loan data come from? Id think the total debt is a lot higher because that number isnt disclosed as far as i know.
At one time, there were usury laws in the U.S. States, those protection laws were done alway with in the 70s, and thus the debt business exploded.
My husband over the years has done something I've never heard of anyone else doing, but I think is smart. He borrows money, but only if he's got enough to pay off the borrowed amount. This gets him the item, he has the money he started with(gaining interest), makes payments out of pocket, improves credit score and has the money to pay off the loan if SHTF or a more important family emergency happens. This is a slow go, stable life strategy. OPM can work with patience and planning.
You left out the part where the borrowed amount also has interest that you must pay, likely negating any interest you are earning…it’s a wash mathematically and you’ve incurred risk.
That can work and is a strategy employed by rich folks. If the money you have now can earn you more than the interest on the loan, it is a winning strategy. Also money now is more valuable than money later, due to inflation
You do need to have access to good lines of credit - no subprime crap - and keep track of all the outstanding balances to make sure that you indeed have the correct reserves.
If you follow that, then by all means use other people's money and keep your working for you.
In recent Cdn Tire flyer, there is a smeg toaster listed for sale at $223.99 reg price 279.99. It is not a typo. OR 9.34 per 24 months. This toaster is the Rolls Royce of toaster.
I will be keeping my 10 years old toaster.
I negotiated a price on a car at a dealer with financing then swapped last minute to get a better deal
Paid the first house off in 8 years, the second in 4 years. Only borrowed at low or zero % to maintain a credit rating. Not a bad way to live.
We don't have the option to refuse the credit. The system is set up that way. No credit score: no renting, no mortgage.....It's not a choice on the part of the end user, it's imposed by the banking system.
I remember trying to buy a car. I made my offer on one that been sitting for months. Man wanted his listed price sending me a link to where I can get a loan and thus afford his price. No thanks. I only wanted to buy for what I offered. Saw same car still sitting on the market several weeks after that.
👌
The problem with debt driven economies is the advantage they give to the participants, hence perpetuating the cycle!
Gary's Economics explains this thinking and how the owner of debt get people to pay them their income, and so the owner of debt get more wealth.
Banks create money in order to make loans. The funds are used to bid up prices. That means inflation is created.
The borrower really is the slave to the lender. People choose to go from debt free to ten of hundreds or hundreds of thousands of dollars in debt in less than a few minutes when they obtain a loan for a car or a home. Allocating money they haven't even made yet for the next 6 to 30+ years.
Yet they don't see it as such because it's acceptable.
Indeed and student debt.
The natural course of things for a system in which the line must go up.
Don't get a credit card or get a loan and you're doing better than the guy in the new truck and everything else. ALWAYS LIVE IN THE POSITIVE!
I have a new truck lifted 4x4 paid in full
@@Dieselpwr Your exactly the kinda guy I'm talking about, living in the positive. Congrats on the new truck, take great care of it and it will take great care of you!
@@Dieselpwr you're*
Unless you're a business owner or real estate investor where you leverage debt to get wealthy and pay no taxes
Bummer, I was expecting a movie about the impossibility of FIAT currencies and the debt-based monetary system we these days have... But guess this is one part of that equation too. Good movie and spot on!
This is a gem
This is a good video that explains how things work but it gets a bit biased towards the end. Credit has been around for thousands of years. It's older than money itself. And while I do think that credit these days puts a premium on things, it's not as bad as this video makes it to be. In the long-run supply isn't static and supply goes up if and when profit margins go up so by implication credit shouldn't make things that much more expensive.
The problem in Canada is the oligarchies which control the prices to an extent especially in the short-term as well as excessive Government regulation and bureaucracy which helps said oligarchies by increasing the time to respond and adjust but only in nominal terms thus increasing barriers to enter the industry (in real terms you stay the same because the bureaucracy makes it harder to do real things on the ground like houses or start new companies). One other problem is labour unions with too much power and skewing real wages. These people (within the unions themselves not the workers who pay union dues) make so much money that they would be considered upper middle class. That's how much power they have and they leech from the hard-work of laborers.
I will only use credit if I have at least 4 or 5 times the resulting debt in liquidities. That way I can easily pay off the debt without paying interest. Like I don't care about carrying debt longer if the interest APR is under or very close to inflation like under 5% APR.
The problem is not debt as such. It's interest that is the problem. Credit is a vey normal thing and shouldn't be a problem. It's the interest that is inflating everything.
I grew up and went to school in Hamilton, Ontario throughout the 70's and 80's. Barely any discussion in school about money, debt, what it is or how we use it. I don't know why the province run education system ignores the one thing that we rely on most to live in our society. I suspect that if everyone knew about our money system the voting public would expect a more competent government. Why ruin a good thing?
What a disgusting world we live in.
we were in these times na
I recommend the 60/40 Portfolio. Where the 40 is the S&P, and the 60 is bitcoin.
Dave Ramsey approve this message
Is it price inflation or is it legitimate inflation and price is merely the manifestation of inflation? I think Friedman said inflation is a monetary phenomenon. Obviously trade wars or sanctions etc can led to price spikes but also 40 years of lower interest rates forces assets higher.
Since banks can create money out of thin air with zero reserves during the rona i remember of course it’s inflationary especially since the government rolls the debt over and just expands it.
Debt is only good for assets like a house. Debt has a neutral effect for housing because the home appreciates pretty well over time. Other that housing, it’s either too risky long term or bad debt.
Even a house might be bad. Long term stress. You might get sick disabled or lose your job. Lose your spouse etc
Credit scores are the biggest scam of all.
And the cards
Those who understand how compound interest works - earn from it.
Those who don't - pay for it.
The average Canadian carries more debt than the average American.
Mostly because our housing costs twice as much.
Narrations from these old videos sounds so foolish and innocent.
US household debt is actually down significantly from its peak in 2010 of about 101% now it is only about 62% which means it's not at all a problem lol. Plus most household debt is long-term fixed rate mortgages that are below inflation so it's essentially free. If we still had the debt we had in 2010 US household debt would be over 28 trillion dollars so a record 17 trillion dollars is nothing. This is equivalent to a household making $100,000 a year and only having a total debt load of $64,000 😂 and at worst the debt load in 2010 was $101,000.
I have no debt everything is paid I have a new truck a old truck and a home
But I can’t buy anything because the prices now are crazy because everyone is willing to pay a premium
Sell the oldtruck
@@turtleanton6539 no one can afford it
It’s old not trash
Any economic/social system will always have struggles. It is human nature for individuals to better their position in life. Therefore you must limit the scope and power of any institution, that goes for everything from government to citizens. This is why money, the mechanism for nearly all exchange, must be decentralized and not controlled exclusively by a relatively small group. The problem still exists: how does the decentralized defend against a large centralized entity? Maybe there needs to be some sort of fail safe that compels the decentralized to only band together (centralize) in order to defend against the centralized actor?
Research Bitcoin.
You mean the make believe "money" invented by a fictitious character 26 years ago....that can only be traded on a machine whose power supply is controlled entirely by the very people we wish to break from?
You mean that bitcoin? Can you name one gas station, grocery store, apparel store that has taken bitcoin anytime in 26 years? Bitcoin is spelled CBDC and Satoshi is a resident of Langley.
You haven't seen nothing yet. Wait til it comes on line.
14:03 seeds to the womens rights movement 😂 divorce your husband, work 3 jobs, get a tattoo, shave a part of your head, YEP! And you have your own car!