This movie series entitled “Money, Explained” purposes are to both entertain and also educate the

viewers about the different kind of scams with deep explanation of analysis.

Episode 2: Credit Cards

There are lots of benefits in using credit cards, it is how you handle it. This second episode of Money,
Explained, talks about credit cards. How we must handle it, and what are the pros and cons in terms of
not using it effectively?

I’ve learned in this episode the proper ways in using a credit card. Just like in our lesson, we should
analyze what kind of interest are we in, is this a simple interest or a compound interest? It is important
to know the differences in that kind of interest. Because when we say simple interest, it is calculated
using only the principal only. And when it is compound interest, the interest is based on the principal
plus all the accrued interest. As I watched the movie it explained deeply how to use a credit card. First,
you must pick your credit card company and not the credit card company pick you. Find the credit card
that has the lowest interest and that is suitable for you. For you not to get into any trouble with your
credit card, you must pay monthly and on time. People who are not paying it on time or the more they
pay delay, their statement will be bigger and bigger until they can’t pay it anymore.

So, in using a credit card we must be wise and responsible for it. We must know the consequences we
are going to face if we do not handle it in the ways, it should be.