Credit Card Management Strategies

The video provides four practical tips to manage and reduce credit card debt. It begins by explaining the common issue of credit card debt among Americans and introduces the concept of 'completion bias' in payment prioritization. The first tip advises focusing on high-interest debts first. The second tip suggests negotiating with credit card companies for lower interest rates. The third tip recommends adjusting payment dates to align with personal cash flow. The final tip highlights the advantage of increasing payment frequency to reduce overall interest. These strategies aim to help individuals become debt-free more efficiently.

What percentage of Americans are currently carrying some form of credit card debt?

• More than half

• Less than half

• Exactly half

• One-third

What is the common mistake people make when prioritizing credit card payments?

• Paying off the card with the highest interest rate first

• Ignoring interest rates completely

• Paying off the card with the lowest balance first

• Paying off all cards equally

What is 'completion bias' in the context of credit card payments?

• The tendency to pay off the largest balance first

• The tendency to pay off the highest interest rate first

• The tendency to complete tasks that are easiest

• The tendency to avoid paying off any debt

What is a potential benefit of calling your credit card company?

• They might increase your credit limit

• They might lower your interest rate

• They might waive your annual fee

• They might offer a new credit card

What percentage of people were successful in getting their interest rates lowered by calling their credit card company?

• 75%

• 50%

• 100%

• 25%

Why is it beneficial to change your credit card payment date?

• To increase your credit score

• To avoid paying interest

• To confuse the credit card company

• To align with your cash flow

When is it suggested to set your credit card payment date?

• On the last day of the month

• After your payday

• On the first of the month

• Before your payday

What is the advantage of making weekly payments instead of monthly payments?

• You pay more in interest

• You pay less in interest

• You pay more in fees

• You pay the same amount in interest

How much would you pay annually if you switch from monthly to weekly payments of $25?

• $1,200

• $1,300

• $1,400

• $1,500

What is a natural benefit of changing your payment frequency?

• It increases your credit score

• It reduces the total interest paid

• It extends your payment period

• It decreases your credit limit