Doom Spending & Credit Card Debt is Out of Control…

I'm in $71,000 worth of debt right now. Because I have $30,000 in credit card debt. Your debt in total? $210,000. So I did upgrade my mic, so hopefully over the next couple videos I'll be kind of tweaking with the audio a little bit, so hopefully I'll get the best that I possibly can out of this mic. So if these videos do sound a little bit different each time, that's why. But today we're talking about doom spending and credit card debt with, I guess, primarily just with the Gen Z generation. It's very frustrating. I don't know how to relate to it because I have just, I don't have that kind of personality. I've never been this type of person. But there are many people who are just spending every single penny that comes in and more, getting themselves into more and more credit card debt, just to be able to buy cool things that they like. It's not even just necessities or buying groceries or paying rent or mortgage. It's just like Louis Vuitton bags and vacations and cars, things that aren't necessary to survive. So I got a lot of examples to go over. I probably won't even use them all because I don't want this video to be super long. But leave your comments down below if you guys want me to talk about any topics in the future. But we'll just get into a couple very frustrating videos now. And the first video we're going to show right here, I'm just overlaying because you basically just have to read what's on screen. So when I'm chilling, having my good old time, sipping my drink, impulse buying anything that brings me the slightest bit of joy. And then I suddenly remember I've gotten over 10k in credit card debt. So there's like an entire trend of this that is just like, I guess, attention seeking videos just for this. Because what I found is when you go into the comments, it's almost like an echo chamber of all of these kinds of people. Well, make it about 20k and we're the same. I feel safe in this comment section. Just talk myself out of buying a Coraline cat plush because of the 30k I need to pay. I don't even know. What is a Coraline cat plush? Whatever. $30,000 on that. I started 2024 with 16,000 in credit card debt and I've got it down to 12k. Still, 12,000 is a ridiculous amount. Paying them off and putting it right back on. I need help. But this isn't legitimately asking for help. This is the, oh, I want some likes on my comment on TikTok type of, oh, I need help. Haha, it's a joke. The loudest silent repost. This makes me feel better about my 5k in credit card debt. This is my safe space. You and me, we're the same. And at least on this post, it's funny to see that all of these are women. So I guess all of these women have been brainwashed enough to just consume and buy items that they really don't need and get themselves into crazy amount of debt. And then I guess not even take it seriously online and make it like a joke, like it's relatable that they can't control their impulse buying. And then they're in just massive credit card debt for most of the time, the rest of their lives. Then we have a guy who's very cringe right here. It's just, again, the relatable type of attention seeking, trying to get views and likes on TikTok type of video. I miss doom spending on cool shit like I'm saving money for what future? And I mean, the dude already looks half homeless. So I mean, he does have a point. Spending my whole paycheck on tattoos, even though I'm already late on rent. I know it sounds like I'm pretty pissed off right now, and I know that that's their life and they want to spend it on dumb stuff, then let them. But these are also the same people who will also be in Section 8 housing and get welfare checks just because they don't want to work. And they'll spend it on dumb stuff just like they're talking about right now. And that ends up hurting people who actually work for their money, paying taxes just to let them make these cringe TikToks for attention and get food and shelter from basically us working and making money. Now, if you watched my video talking about Caleb Hammer before, I was talking about this woman. I couldn't find the clip. It's because I actually was going to put it in this video. But we've already talked about this woman doing girl math and obviously being in debt with that. But I thought this clip was too good not to put in a video. With my credit card, I max it out to 4000. What do you mean you max it out? Max it out or max it out? Max. So my max, I got confused with the credit debt and credit limit. So my parents got me a credit card, and I ended up getting a max credit limit of $8,000. So I could spend up to $8,000. That's what that means, right? So this person who is 20 years old thought if they got a credit card limit of $8,000 that I guess the bank would just give you $8,000 for free, and then you could spend it on whatever you want. You didn't have to pay it back. Like, it's actually what you would think a child in elementary school and middle school would think because they have absolutely no knowledge of finances. This person isn't even like, oh, I just got out of high school. I'm 17, 18 years old. This person is 20 years old. They are actually an adult now. It's unbelievable. My budget for next month is $200. I spent it last night doom scrolling. Oh, my God. I woke up this morning. I thought it was a literal nightmare. I was like, wow. Did I actually spend money on four pairs of parachute pants? Yeah, I did. I thought it was a fever dream. Like, last night, I was sleeping so good, and I woke up randomly, and I was like, what to do? What to do? Online shop. Great. I did. And apparently, I did well. But I got some good things. I got some new pants. I got some new shirts. And I've been re-wearing the same clothes since I was like a junior in high school. So I'm like, this was needed. However, not when I like quit my job for June and like don't really have like everything lined up and teaching already pays you nothing. So really, this probably put me into debt. Theoretically, of course, I'm really hoping it didn't. But there is a high possibility. And in that case, I'll have a panic attack when that credit card bill comes. But I'm just going to pay it off. Like, did I overdraft or did I not? I think the thing that makes me the most annoyed with these videos is that it's almost just like a joke, like it's nonchalant. I would say that this woman probably has a borderline shopping addiction then. If her first thought after waking up in the middle of the night is to start shopping online, I have never even had that millisecond of thought in my mind ever. That is so alien to me. So I highly doubt when she did her little mental gymnastics right there, saying that she was only wearing clothes from her junior year of high school. I highly doubt that. I'm pretty sure she shops on the regular so much so that she's not that serious about actually going in the negative just because she bought four pairs of pants. I don't know about you, but I check my bank accounts every single day, even though I don't really need to. I'm not in the position where, oh, if I bought food at Target or Walmart today, would I go into the negative? But if you're in that position where if you bought a couple pairs of pants or whatever online, that there was a possibility of you actually being in debt now, it shouldn't even be in your mind to do that. It's just so scary to see how some people live because if you've seen any of my videos along with the shirt that I'm wearing today, I'll wear Hawaiian shirts. I'll wear like a lot of golf shirts just because I think they're comfortable. And a lot of these shirts are actually decently expensive. This is Polo Ralph Lauren. Same thing with the golf shirts that I have. I mean, the Adidas Under Armour, like Rowback. If you buy all that stuff retail, they're actually very expensive. And almost everything that you've seen me wear has all been bought at Goodwill for $4.19 each. So there are definitely ways to shop if you really do wanna consume and buy that much stuff. You'd get decent items for relatively cheap prices, but that woman clearly does not think that way. And it's going to be very dangerous for her because it seems to be very easy to get herself into debt. We just have more and more clips of people just taking it like it's just one big joke. ♪ Because I have $30,000 in credit card debt ♪ ♪ When they call, I tell them I can't pay it back yet ♪ The Victoria's Secret credit card was a downfall of my credit in my 20s. It's taken years to fix that damage. One time I bought a single body spray with my card and forgot to pay it off and forgot the card existed. And with interest, I owed like a grand. My sister got bumped up to $5,000 on the credit card, maxed it out on all the best Victoria's Secret stuff, and then her apartment burned down the next day and it was all gone. That actually sounds unbelievable, but I mean, what's the benefit of her lying there? But 5K worth of overpriced clothing, just gone like that. I got 700 and they're trying to take me to court. I know there are a lot of people who don't like these videos, basically showcasing the stupidity of some people with their finances because it is their decisions, but broadcasting it out to the world, either in comment sections or on TikToks for views and attention and likes. Like, I don't know how you don't think you're gonna get opened up to criticism, especially when it just becomes a big joke and it's funny and then it's relatable with other people who are terrible with their money and massive amounts of debt and just doom spending and maxing out all their cards. And I mean, you could talk about all the people going into debt just to go on vacation this summer. There are already people struggling, but instead of just staying home for the summer, these people are maxing out their cards, going on cruises, going on vacations, flights all over the world, all over the country. And a lot of people's rationale with it is that they don't think that there's a future for them. So what is the end game? Do they expect to just like shrivel up and die on the side of the road soon so they have to go to Disneyland this summer? I don't understand the thought process on this at all. I'm in $71,000 worth of debt right now. So let's see how we got there. So let's start with credit cards. I have four credit cards, but only three of them are in use. To begin, I have Discover number one, which is $8,159, which is actually a Discover loan, like personal loan that I took out to pay off my actual credit cards because the interest rate for the personal loan was cheaper than the interest rates on each card. So it's saving me money in the long run paying it off. But for about a year, I wasn't working and was kind of depressed. So it got racked up a little bit. So $8,159 is a personal loan that I pay off every month. And the interest rate for that is 11.9%. I just really want to talk about that first one because the rest of it is very small amounts of credit card debt. And then the majority of it is actually just student loans, which is a whole nother beast. But you definitely know it's bad if you got to take out a personal loan just to be able to start paying off the credit card debt because of how crazy high the interest rate is. And her reasoning was she, I guess, got fired or laid off. And her depression made her spend $8,000 that she didn't have because she didn't say that during that year off, she was spending all of that money on necessities, on rent, you know, food, getting gas, going places to places, possibly trying to apply for new jobs. But from the way she was talking about it, it just seems like she bought $8,000 worth of unnecessary items. And then while also still being, what is that? $63,000 in debt at that time because of the student loans and the other cards. So along with people just giving up and spending all of the money that they have or just in credit limits on stupid stuff, we also have these buy now, pay later companies on basically every online website. So not only can you just look and click and then the next day, whatever item you got just shows up at your door. You don't even have to pay for it until next month or there's four easy installments or six easy installments. And then it looks a lot cheaper than it actually is, but it's almost like it's the gateway drug to debt. Younger consumers are having trouble paying off debts accrued while using buy now, pay later. And as the name suggests, this practice allows you to pay for a purchase in several installments with promise of little to no fees, no interest and with quick credit approvals. So if I want to buy this $600 Dyson Airwrap, I can either pay $600 upfront or just $55 a month through companies like Affirm. And this has enticed young consumers, especially those with little credit history who saw BNPL as an alternative to credit cards. BNPL companies like Affirm, Klarna and Afterpay have also launched with hip clothing retailers and struck deals with social media influencers, making it even more attractive for young shoppers. But the Consumer Financial Protection Bureau said that younger borrowers were more likely to have loans in derogatory status, meaning they're in default or sent to a third-party debt collector. Roughly 11% of borrowers paid at least one late fee in 2021, an increase from the prior year. 18% of consumers aged 18 to 29 fell behind on their payments in 2021, according to a Federal Reserve report. I would say the only thing that I have ever bought that I couldn't actually afford at the time was my Honda Civic when I bought it back in 2019, it was $10,500. I don't think I had enough in my actual bank account, so I only put down a $2,500 payment. But if I'm in that similar position today, any car that I buy in the future now, I'm basically just buying in cash because in my mind, if I don't have that kind of money, I can't afford it. I would hope to say in one day that I could also do that with a house. It'd be much more difficult. But any of these type of Affirm, Afterpay stuff where if you can't buy a pair of Air Jordans off of Foot Locker for what, $180 now, you definitely cannot afford it. Using these buy now, pay later companies are just like the easiest way for you to slip down into all of that consumerism and buying a whole bunch of stuff you don't need. And then you miss a payment or two and the interest starts racking up and it just starts getting really bad for you. Your debt in total, $210,000. That's a mortgage. And these are like eight, 15, five balloon percentages. This is insane. And you don't think this is that bad? You don't think that number is that bad? The number sounds bad, but. Since you're not willing to say it, I need her to know behind me, this is bad. This is scary. And not all of it's bankruptable either. There's a lot of student loans in here that will not, that worst comes to worst will not be bankruptable. Bankrupt, yeah. It's what everyone says who goes bankrupt. So any final thoughts, any final questions? No, I mean, thank you for taking the time to go through this. I know it was kind of aggravating, frustrating with all the paper and whatnot. A little bit of lack of clarity. I thought I was coming here with a lot of clarity, but as far as the situation, but I guess it wasn't the case. I mean, along with being $200,000 in debt, the comments are honestly like 100% right. He literally doesn't care. There's no interest in fixing anything. I mean, you heard him on the mic. He's just basically like, yep, just talking like this. Thanks for having me on. And like Caleb said, he can't just say that, oh, I'm filed for bankruptcy. And for the next seven years, you know, he's in the hole, but can come back from it. Those student loans will still follow him. And I bet that's what a lot of the doom spending type of people will think, you know, five figures, six figures have a whole good time. And then I'll just go bankrupt and then live with my parents for the next five, seven, 10 years. And then I could, you know, get back on my feet. If they're in like student loan debt, that stuff will still haunt them and follow them. It's not just like a, hey, I could have a really good time and party it up and then just have to take a few years to be able to fix my credit. That stuff will follow them for the rest of their lives. And I think to finish this video, I like how there's so much effort being made to try to pull a fast one or be able to make money in a very easy way instead of actually being responsible and getting out of debt themselves, whether it be getting a good job, learning a skill, something that provides value. Instead, there are nothing but these trends on TikTok to try to beat the system and beat TikTok's algorithm to be able to basically make free money off of their videos that provide no entertainment or no information at all. It's just, it's basically like the follow for follow back in the days of like older Instagram, where it'll be like, you know, I'll like all your posts if you like all mine, try to build up that fake following, you know, that fake popularity. They're just trying to do it now and make money off of TikTok. So how does this whole pay off each other's debt by watching videos thing work? Let me break it down piece by piece. I've gotten a lot of questions about this. So basically you have to reach a certain threshold to be a part of TikTok's creator rewards program, which I'll start referring to as CRP moving forward. So to qualify for the CRP, you have to have 10,000 followers and have gotten at least 100,000 views in the 30 days prior to when you reach 10,000 followers. Once you hit that threshold, TikTok will invite you to join the creator rewards program. And at that point, moving forward, any videos you post will be, you know, illegible for rewards. So there's a whole bunch of people who are trying to pay off their debt and not even actually be a legitimate influencer. Even with that blowing up and then, you know, every like little kid now wants to be the next Minecraft YouTuber or, you know, just like a influencer in general, a content creator, TikTok, YouTube, you name it. They don't even want to do that and be famous and get a whole bunch of money. They just want to game the system and get other people to go back and forth and watch their videos that have no actual substance to them just to be able to make free money off of TikTok instead of actually working to get out of debt. So I don't know, we kind of went all over the place. This is way more of a frustrating video than I thought it would be. I think a majority of it is just because there are so many people in so much debt and it seems like they don't even care. Like it's just a big joke. And then when they post it online, they get a whole bunch of other people who are just financially inept, illiterate. I mean, just completely a lost cause in their comments. And it's just an echo chamber of, oh, you have $10,000 in debt? I am 30, I'm 50K. The one guy didn't look like he cared at all and he was $200,000 in debt. So it's like, how could you not get frustrated at these people when they almost make their debt some sort of way to get attention online, whether it be comments and safe spaces and all that kind of shit or getting criticized because how bad of choices they've made financially in their life. So let me know what you guys think in the comments down below. YouTube thinks you'll like this video popping up on the screen right now. But hopefully you guys enjoyed this video. If you did, please leave a like and I'll talk to you guys later.