What the Credit Associates TV commercial - The Minimum Trap is about.
Credit Associates TV Spot, 'The Minimum Trap' is a commercial that highlights the dangers of minimum monthly payments on credit card accounts. The ad starts with a man holding his mail and looking worried as he sees his credit card statement. He sighs and flips through his bills until he comes across a Credit Associates brochure. He reads through it and realizes that he can get help with his high-interest debt.
The commercial goes on to explain how minimum monthly payments can keep a person trapped in debt for years, due to the high interest rates that are applied to the remaining balance. The man is seen struggling to make his payments, and as the camera pans out, it becomes clear that he is stuck in a hamster wheel.
Credit Associates offers a solution to this debt trap, by working with their clients to negotiate a lower interest rate and consolidate their debt into a more manageable payment plan. The commercial emphasizes that Credit Associates can help their clients get out of debt faster, and with less worry and stress.
The ad ends with the slogan, "Stop running in circles and call Credit Associates today", encouraging viewers to take control of their debt and take advantage of the services offered by Credit Associates. Overall, the commercial does a great job of highlighting the importance of avoiding minimum monthly payments and seeking help when dealing with high-interest debt.
Credit Associates TV commercial - The Minimum Trap produced for
Credit Associates
was first shown on television on September 29, 2019.
Frequently Asked Questions about credit associates tv spot, 'the minimum trap'
A debt trap is when you spend more than you earn and borrow against your credit to facilitate that spending.
Though inflation has fallen considerably from its 9.1% peak in June 2022, it's still higher than the Fed's 2% target, so you're spending more for less.
How to Avoid 10 Habits of Credit Card Debt:
- Read the fine print. Understand all the terms before opening a new credit card.
- Stay on budget.
- Check your accounts.
- Don't miss payments.
- Pay off the balance.
- Know your credit usage.
- Avoid cash advances.
- Think before buying.
Nobody wants to fall into debt, but it happens all too easily - and quickly. Some of the most common expenses that throw people into credit card debt are unexpected medical bills, emergency expenses and even just everyday spending, such as on groceries, that adds up.
However, if you only make the minimum payment on your credit cards, it will take you much longer to pay off your balances - sometimes by a factor of several years - and your credit card issuers will continue to charge you interest until your balance is paid in full.
5 Common Credit Debt Cycle Traps
- The 0% Introductory APR. Many credit cards come with an initial 0% introductory APR on purchases and/or balance transfers; this is usually a limited-time-only perk.
- Minimum Repayments.
- Late Payment Fees.
- Fixed Rates.
- Inactivity and Annual Fees.
However, there are times when people fail to pay their credit card bills with the due date and end up being defaulters and fall into a debt trap. It's always advisable to use credit cards wisely to avoid falling into a debt trap.
The bottom line: Credit card debt is considered "bad" debt because of its high interest rates and low minimum payments, and the fact that it isn't used to buy appreciating assets. Use your credit cards for the rewards and other benefits, but pay the balance in full each month.
Eventually, the card issuer will charge off your account. That means it will close your credit card, write it off as a loss, and send the debt to collections. The card issuer may have its own internal collection agency, or it may sell the debt to a separate collection agency.
Here's how most people get trapped in credit card debt: You use your card for a purchase you can't afford or want to defer payment, and then you make only the minimum payment that month. Soon, you are in the habit of using your card to purchase things beyond your budget.
A classic example of a debt trap is when individuals borrow beyond their capacity to repay, leading to a cycle of escalating debt. High-interest rates, mounting payments, and inadequate income can create a situation where borrowers struggle to cover basic needs while servicing debt.
Only Making Minimum Payments Means You Pay More in Interest
Plus, only paying the minimum means you'll be in debt for much longer. Why? Only a small percentage of a minimum payment is applied to the card's principal balance - the remainder takes care of the accrued interest and fees.
