Maxed Out: Investigating Credit Cards
In this project, we explored the secret life of the credit card, and how even tiny abuse of a piece of plastic can ruin one's financial future for years to come.
We explored different scenarios in Excel, digesting the different lengthes of debt when variables such as the APR and monthly payment are changed.
Also, we made a Public Service Announcement to warn to public of little know but crucial risks involved with credit cards and lines of credit.
My partner Paul is working on a game in Flash to teach students on the dangers of credit cards and how they shouldn't be abused. In the meantime, checkout a spoof ad of VISA's "Downtown" Ad Campaign, showing that falling into credit card debt will make you spend longer than "an afternoon downtown", instead you can be spending up to 20 years paying off your bill, and the credit card companies will "own your world"
Reflection:
In this project, I learned that credit cards, while they are enticing to use due to their rewards and catchy commercials of happy people charging everything to their credit cards (a la VISA’s “Downtown” ad campaign). It can take forever to pay off credit card debt. It is better to get a loan at a fixed rate interest than to rely on credit cards.
A 20% APR is infact a lot, and it can take many years to pay off a couple of thousand dollars as interest will continue to accrue.