Annual percentage rate

Crazy interest rate.

APR is through the roof.

But that's so much less than a billion dollars.

I don't care.

And then finally, I would say it's not just let's tell young people how to understand these products.

Let's re-explain these products or change the product so they can get it, right? You know, one of the pieces, the stats from our research was almost half of the young folks don't even understand what APR is.

Right.

And that's been historically the benchmark to evaluate credit.

And that's huge.

It tells you that the barrier to financial understanding for young people isn't laziness or disinterest, it's the social shame.

Nobody wants to admit that they don't know what APR means.

Nobody wants to call a bank and say, I don't understand my pension statement, but you can just use an AI chatbot and it does not judge you.

It really is.

Because APY is not the same thing as APR, the annual percentage rate.

even though banks love to just throw both acronyms around to confuse us.

It is a critical distinction, honestly.

APR is the raw flat interest rate.

If you have an APR of 3%, the bank is paying 3% a year.

Flat out.

Right.

And the easiest way to understand the deal and to get a good deal is to separate them.

So establish the selling price, establish the trade value separately, establish the amount financed, establish the APR, establish the term, Review optional products separately, not lumped together, and look at the bottom line.

Read the contract.

It'll make all the difference in the world.

12 months, it's, it's 12%.

That kind of sounds almost like a 12%, like, APR on, like, a credit card or like a loan.

Phil, simplify this for me.

I- if cohort financing was a credit card, what would the target annual interest rate actually be on that credit card?

Let's say...

APR is the best way to save money, but you owe your mom and dad $500 and you're paying them $50 a month.

If you sort it by APR and mom and dad are not charging you interest, they're going to be at the bottom of the list.

And if you move them to the top because you want to pay them off first no matter what because they're your parents, then that becomes custom.

So you can customize the order in which you want to pay them off.

The idea that you start out paying your smallest debts first gives you a sense of momentum and confidence and hope.

Is that how you recommend folks approach their debt or is it depending on each individual circumstance?

um yes I would recommend try the snowball first because then once once you see a deck go away it can really boost your momentum and it can make you feel good you can also just at the flip of a switch push a button and it'll show you oh here's what it looks like if you did it based off of APR and you could print them both out and look at them and then see which one you want to follow and But for the first-time user, I would say just go with the snowball method and take those early wins, pat yourself on the back, and keep going.

wayne um sorry to the bubsley developers hopefully we've made peace with each other now ray seemed to chill out quite a bit towards the end when i Well, I took four games and then took one on tick, which is going to be – that's going to end up costing me an arm and a leg.

Yeah, he's APR.

He's APR.

Yeah,

it's quite high interest.