Google Cloud Speech-to-Text API (Chirp) + Gemini 2.5 Flash Non-Thinking. Treat it as a searchable index of what was broadcast, not a quotation record.
00:00:00or adults, from the center or from the periphery,
00:00:02all of us have a thing with money. So we gathered all
00:00:06these Israelis into one room. Together they will be
00:00:09our finance committee. Together with them we will understand where our
00:00:13money is and how to take responsibility for it, so we don't have to freeze
00:00:16it under the floorboards.
00:00:28Life in Israel is expensive.
00:00:30Pandemics, wars, politics, wow, what
00:00:33fun. What wonder that Israelis want to live
00:00:37a little and buy,
00:00:40online, in malls, everywhere.
00:00:42VIP, which is essentially a credit
00:00:47card that currently gives up to two
00:00:50jeans, and it's a credit card, you say I can pay with it
00:00:53at the supermarket, at the grocery store, yes, yes, you don't have
00:00:57enough money, no problem.
00:01:01Everywhere you go they'll offer you a credit card, before taking a loan check with
00:01:04IsraCard and credit companies will be happy to help even with a
00:01:08loan, a loan
00:01:11you have two cards you have really good discounts a good card it's
00:01:14worth it yes only for people who keep
00:01:16a little you
00:01:20100 shekels okay
00:01:24and it costs me not in the first year it doesn't cost
00:01:27money.
00:01:48The cost of living in Israel is sky-high, expensive to raise children, expensive to buy
00:01:52a house, expensive to breathe, once if there wasn't enough, they simply didn't
00:01:56spend. What do they do today? They spread it over payments. They take out
00:02:00another card and use another
00:02:02credit line. In Israel of 2026 there are
00:02:0612 million credit cards. That's two cards
00:02:10on average per adult Israeli. More cards
00:02:13than people. All these credit lines allow one
00:02:17thing, to live and drink, as if we will
00:02:20die tomorrow. This way of life has
00:02:24a price.
00:02:36Hello members of the Finance Committee Thank you for coming
00:02:40At the end of the meeting we are firing you because you were really bad this year, yes
00:02:44are you in the black or in the red? We are in the black
00:02:46We are We live within our means
00:02:49We are calculated We are in the black I have never been
00:02:52in the red My father had such an approach of always
00:02:56saving and never owing anyone anything This is a Polish upbringing.
00:03:00I don't know myself in the black. Have you ever been in the black? A short
00:03:03period, after the wedding.
00:03:07Oh, I'm also in the red, a nice red. Are you within the
00:03:10framework that the bank, yes, I'm within the framework. Are you within
00:03:14the framework? Many outside, as if
00:03:17our framework is minus 40, so now we are
00:03:21at minus 47. Exactly yesterday
00:03:24the bank called.
00:03:27So we started like, what do we do, we need a loan now. And what will we do? What
00:03:31will we do, what will we do? I've never been
00:03:34in the red in my life, for me it's a loan like anything else and I
00:03:37owe money to someone? It's not a comfortable thing
00:03:41to live with in the red, but you already mentally
00:03:44get used to it. It's very, very marginal in our consciousness, like
00:03:48the bank called. Many times I laugh and I say I'll just block
00:03:51the bank, they won't call anymore, I'll block, I'll report as spam, it
00:03:54will work itself out next month, they'll eventually call him too, but it's okay,
00:03:58they know how to reach you. Yes.
00:04:05How can money on the one hand be such a cold and alienating
00:04:08thing, yet on the other hand, it's intertwined with so much
00:04:11psychology? Money is one of our main
00:04:14motivators in life, money is power, money
00:04:18is a driving force, a driving force for growth, a driving force for success, but it can
00:04:21also lead us to failure, and therefore every
00:04:24time there are decisions, our brain influences it, even in ways
00:04:28that are very emotional or psychological.
00:04:30How rational are we when it comes to money? We are very
00:04:34irrational when it comes to money, we all
00:04:37make mistakes, we are all biased in the same way, and I think that many
00:04:41of the strong factors around us are aware of this and also know
00:04:44how to plan the environment, so that they can also benefit
00:04:47from this irrationality that we have around decisions about
00:04:50money. Our irrationality in everything
00:04:54related to money is expressed, among other things, in the fact that we
00:04:57spend more than we can. Not a few families
00:05:01in Israel live in chronic overdraft, an overdraft that causes them
00:05:04to take more and more loans and sometimes get into
00:05:07complete trouble. The Haddad family from Rishon LeZion is one of them. He
00:05:11works for a beverage company. Communication is an interior designer and they
00:05:14have three children Hello hello
00:05:17Hello
00:05:21Okay, good. Tell me how you are with money.
00:05:25Surviving. We are surviving with money.
00:05:28From month to month, from month to month. We don't have
00:05:31savings, for example. We don't manage to be
00:05:34in the black. All our lives we've been in the red. I check my bank
00:05:37account every day. Okay, every day I go in to see what
00:05:41has come in.
00:05:51because he didn't know how to deal with it I was afraid to say how much
00:05:54we were in the red, like we're not partners, listen, you hear me, I'm minus 30, I'm
00:05:57minus 20, but then I, yes, exactly,
00:06:01that, and then when we still had a framework of
00:06:0430, then we would say I reached minus 27 and I knew
00:06:08okay, now the electricity bill is coming, now they will want, just kidding.
00:06:12Now I'm really saying, just kidding, they wanted McDonald's or we'll go to the supermarket, I don't
00:06:15have, I don't, I made decisions that were not
00:06:19correct. Things he didn't
00:06:22know about, I took loans he didn't know about,
00:06:26loans like that, you know, you take them from the bank, that nobody, instant loans,
00:06:29instant loans to close the overdraft or to survive, like, so
00:06:33that the bills go down and I have somewhere to put it down. You take the small
00:06:36loan, suddenly you're in the black or suddenly the overdraft is smaller
00:06:40and then you have more room.
00:06:42Right.
00:06:46After a month and a half, again. You reached the same point. And then again
00:06:50a loan. Yes. And then again. Yes.
00:06:52How many? How many loans?
00:06:55150. 150 thousand in loans. I'm hearing
00:06:58this for the first time. The amount. That's not true. This is the first time I'm hearing
00:07:02this. The amount.
00:07:06We probably also need to work on the relationship. Because if the relationship
00:07:09itself is healthy, then your partner shares.
00:07:21I didn't sleep for two nights before I told him, I didn't sleep,
00:07:24I was like a shrew, I didn't know how I was going to
00:07:28tell him what I did, I
00:07:31knew that one day it would explode in my face,
00:07:35I knew, it was clear to me, but I didn't know what
00:07:38to do, and I felt that I was in distress, so it was like
00:07:41and all that. All I want is not to say no to my kids, like if I
00:07:45have a club, no, I don't have money. If I can go to the mall, no, I don't have money.
00:07:49I'm not sick. This is something in me, built-in.
00:07:51Why?
00:07:55Because what am I?
00:07:58Help me understand something for a second. How did you get to this situation? Because it's comfortable for me to bury my
00:08:02head in the sand. Okay.
00:08:06And it's comfortable for her not to release control. Oh, it's like you're transferring the
00:08:10responsibility to her. B. No, it's okay, I'm not justifying
00:08:14my behavior, absolutely not, I'm also not okay, I don't, I don't have the
00:08:17application, this is what happens when a person doesn't
00:08:21understand what he's doing, I don't understand what prime is, and I
00:08:24don't understand what percentages are, and I don't understand how to look at a loan, I don't know how
00:08:28to look at a loan, if it's good, if it's not good, if it will help me. Guys,
00:08:32listen, I want us to do something, I want to bring the person
00:08:35who will help you, first to follow, the hard
00:08:38part will be to understand how to make changes. Priorities,
00:08:41how to balance, and in the long run
00:08:45also move to the black, it's difficult, you have to play with the exposed nerves,
00:08:49like,
00:08:50Come on, why
00:08:55is he in the red? Where does it stem from? Look, I think it's
00:08:58something of
00:09:00years, I
00:09:04think that,
00:09:07you get dragged along with this overdraft and then you can't reach a situation where you
00:09:10ever zero it out, because...
00:09:12there's some open loan, we're not
00:09:15wasteful, like, I don't see
00:09:19anything in our lives right now, where I can
00:09:22save. There are frameworks and there are
00:09:26clubs and there is rent and there is electricity and there is water and there is
00:09:29municipal tax and everything together, and you can't zero
00:09:33it out. I won't, I won't cut clubs for the kids, because I think
00:09:37it's a matter of priorities. So I say
00:09:40here very, very clearly, I have no problem
00:09:43saying no to my child. What does that mean? If I get him a club
00:09:47now at the expense of the overdraft or take him somewhere at the expense of it, it's also his
00:09:51overdraft. If you don't get him a club at the expense of the overdraft, it doesn't matter
00:09:55if you don't get him a club today, wait a minute, today there are some
00:09:58standards. Every child today is in a club. My daughter is in 11th
00:10:02grade, she's in a dance troupe. I pay 850 shekels
00:10:05for this troupe. I went into the red to finance this club for her. Yes. I
00:10:09also see my friends, and my girl friends, we are also in the
00:10:13same situation and in the same
00:10:17situation. According to data from the New Page organization,
00:10:2040% of the public are on the edge, and between a quarter and a third
00:10:24of Israelis are constantly in the red. More
00:10:27than half of them took a loan to cover the overdraft. Most of those who
00:10:31did so returned to the
00:10:32red within a short time.
00:10:37I don't think I've ever been as honest with you as I was
00:10:40three days ago, but the fact that I can come to you
00:10:44now, for me, it was all worth it. You should always come
00:10:48to me.
00:10:50Hi Tomer. How are you? How are things? Are you ready for your
00:10:54mission today? Yes, go ahead, mission, mission, yes, I did get
00:10:58to look at it a bit, it really is a mission. What was your first thought
00:11:01when you saw the numbers? A lot of loans, not sure
00:11:05they understand the situation. I'm a
00:11:07walking debt, I'm walking and I'm just dragging debts on my
00:11:11back. Silence on all
00:11:13fronts.
00:11:17Hello. This
00:11:18is Tomer.
00:11:21Take into account that you are not only a financial advisor, you are also a kind of marital advisor.
00:11:25Do you talk about money between you? No, not until today,
00:11:28we sat down this week, and I told him everything, that there were
00:11:32credit cards he didn't know about, and I told him
00:11:35everything, it's like a rock for
00:11:38years. This conversation, this conversation was with
00:11:42Hannah. So I took a deep breath, swallowed a lot of saliva, prepared
00:11:46myself mentally, and said it couldn't get
00:11:50worse than it was now.
00:11:54So let's start. Let's delve into the numbers a bit.
00:11:58How much do you actually earn
00:11:59each month?
00:12:05I'm around nine?
00:12:07Sometimes 10, sometimes 12. So we're
00:12:11talking about around 20 net per month. I
00:12:15see that every month ends with excess expenses
00:12:18over income. As you can see, significantly.
00:12:2145 shekels a month. 45 shekels a month.
00:12:25I didn't know, this is the first time I'm seeing this 45, guys, this is an astronomical
00:12:28number, it's like
00:12:30a high-tech company. I have no way to sugarcoat it, we will
00:12:34need to do a lot, a lot, a lot of things to reduce, to
00:12:37lower, to make the adjustments, and from there we will try to take it
00:12:41forward. Here I see, I don't know, there are all sorts of things for Apple
00:12:45and Google and Netflix, I think it's
00:12:49the extended subscription, we can touch that, we
00:12:52are not, we are not on. Now you're on it, now you're
00:12:56entering, you're checking communications, you're checking
00:12:59phones, you're checking television, you're checking internet, checking, comparing
00:13:03prices, reducing that. Supermarket for example, last month was
00:13:06400, that doesn't include eating out which for example in September was
00:13:092800 shekels, eating out, how can
00:13:12that be?
00:13:16No, guys, it's over, yes, no, it's gone, like, we
00:13:20also see that the variable expenses, which means after the supermarket,
00:13:24after the... It
00:13:32shows that you are still not in the situation, you still haven't understood your situation,
00:13:36the financial situation. Do
00:13:40you know how much you spend per month?
00:13:43Of course, there's an Excel sheet, like, yes, there's an Excel sheet, there
00:13:47are organized fruits, there are monthly updates about where we
00:13:50are, what are updates, it's a reprimand call, what are updates, not
00:13:53a reprimand.
00:14:03She'll define him as stingy, perhaps.
00:14:06That's how she defines it. I call
00:14:08it
00:14:10a savings mindset. Do you do financial diets like that? You surely
00:14:14sit and talk a lot. Do you know, for example, how much you spend on
00:14:18food? We spend money in cash
00:14:21at the end of the month, yes. Meaning, at the counter, you take out
00:14:27the bills. Yes, to feel
00:14:30how complicated it is for an average person
00:14:34to plan their consumption throughout the month so
00:14:37that at the end of the month they don't find themselves in the red. Seemingly, it's a very
00:14:40simple decision, right? We know how much we earn and we also
00:14:44generally know how much we spend, and there are all sorts of elements
00:14:48that make it much, much more complex.
00:14:51For example, installment
00:14:54payments. Everything we spread over payments are different payments, for different
00:14:57periods, and that already causes us almost not to track
00:15:01this issue of expenses, and another thing is unplanned
00:15:04expenses, impulsive expenses, all
00:15:07sorts of things that we suddenly decide and want. When we paid
00:15:11in cash, you really count, and you feel, the feeling that bills
00:15:14and the pain of payment are great. When we switched to credit cards, the pain
00:15:18of payment decreased. In digital wallets, it's almost zero. What
00:15:22would you recommend they do, that they impose on themselves in a new way?
00:15:25Layers of friction? What, they go back to cash? We shouldn't go back
00:15:28backwards, but we do need to adopt friction
00:15:32mechanisms, that will cause us again to feel the pain of payment
00:15:35that we need to feel in order to control expenses. So,
00:15:39for example, put all sorts of filters that I can't, in the case where I need a code, where I
00:15:43need to approve something, and in addition
00:15:46it's worthwhile to use all sorts of digital tools that create tracking or
00:15:50transparency for us regarding how much we spent, how much income
00:15:53we have, and to look at them relatively frequently.
00:15:56Another large fixed expense they have is loans. Every such
00:15:59line is actually a loan. I counted, there are 13
00:16:03of them here. Um.
00:16:06And this actually brings you to a monthly payment of
00:16:096714. I want you to see for a moment, just
00:16:12like, if we only add the loan and the
00:16:15mortgage, just these two items, it's
00:16:1915, you haven't done anything yet, you haven't breathed, you haven't turned on
00:16:22a light, and this
00:16:25thing, we need to deal with it, I'm looking
00:16:28at the number of loans, 13, and I'm thinking to
00:16:32myself, when the f**k is this
00:16:36over, because on all these loans there are also
00:16:39interest rates. I just want you to see the interest rates, because these are
00:16:43desperate interest rates of 11, 12,
00:16:46and these are high interest rates, it's not far from
00:16:49us, yes, there are also easy loans here, right, like
00:16:53I ordered a card and just took a loan instead of the credit line.
00:16:57When I sat here, you didn't talk about credit cards, because I didn't want
00:17:00to say, I said I had to do it with him slowly,
00:17:03because I didn't want this to be, so I already told him we have.
00:17:07Two more credit cards and that's it, like, like,
00:17:11and that's it, like new children being born to you and you didn't know
00:17:15anything, something
00:17:16like that.
00:17:19And here, friends, begins what is called the work.
00:17:23In the coming months, at least, we are going to give up, not for the sake
00:17:26of giving up, not for the sake of cutting back, we are going to give up so that afterwards
00:17:30we can grow, so that afterwards we can flourish. And I think that
00:17:33mainly this thing is not sustainable. If you are not
00:17:37doing this process now, you will be game over in three or four months.
00:17:40Game over.
00:17:48There are people who truly reach game over and learn the hard way the
00:17:51cost of living in the red. This happened to Pinchas Mahsumi, a career
00:17:55soldier who retired and then fell into uncontrollable debt. How
00:17:59are things? Very well. How are you? All good,
00:18:02excellent. Good, I'm happy to hear that, because your story
00:18:05is... not simple. Not simple at all, but it just shows
00:18:09that you can get out of it too. How easy
00:18:12was it to take loans? Listen, it was
00:18:15easy, what do you mean easy? You call for a specific
00:18:19loan? Yes, the next day it's already in the bank, you
00:18:22go online, quick clicks, stuff, in five minutes
00:18:26the money is in the bank. Come tell us how it all
00:18:29started? I served in the military, a career soldier, I
00:18:32had a pretty good salary, respectable, but
00:18:36my financial management and also my wife's
00:18:40was less, uh, it was more than what
00:18:43we could actually manage. That means trips
00:18:46abroad, it means changing
00:18:49cars, and it means that if you don't have money, you take a loan
00:18:52to do it. How did you get into such a
00:18:56mindset of "let's spend," because it's something I didn't have,
00:18:59and suddenly you say, "Wow, I can do it." What do you mean "I can"? I can do it not with my
00:19:03money, I can do it with other people's money supposedly. This feels like a conversation
00:19:06about addiction. Like loans are an addiction.
00:19:10Look, God forbid, all these are credit
00:19:14cards we used to use, I still keep them, all my cards and my
00:19:18wife's, these are the cards that were there, so if we wanted a loan, you could get
00:19:21it from this card, you could get it from that card, and you could get whatever you want, and everyone
00:19:25gives loans, just take it. Didn't the bank
00:19:28tell you, sir, enough with these loans at some point? He said
00:19:31enough, and then my wife told me, maybe I should go for a financial
00:19:35plan. At that moment she told me that. I wasn't willing to listen,
00:19:38why? Pride, ego. If I had
00:19:41listened to her and done it in time,
00:19:45we would have gotten out of it without bankruptcy. How many loans
00:19:48did you take in total? It was over half a million shekels,
00:19:52over half a million shekels, at some point we sold the apartment
00:19:56we had, I understand correctly, you didn't want to sell, no, of course, my wife
00:19:59cried when we sold the apartment, like to think about not having a home
00:20:02and that, but that we start
00:20:05perhaps to behave a little better, so that we have.
00:20:08Room, so we paid off the mortgage with the money
00:20:11we sold, we paid off a few
00:20:14more loans, but still when we did it, it was already
00:20:17the
00:20:19last minute, as they say, it's a cycle that can't go back when expenses
00:20:23are greater than income and you have no more income, and they no longer
00:20:26give you loans, so that's it, the tap is closed. I reached a point where I couldn't
00:20:30pay rent for the apartment, I couldn't talk about it, I wasn't
00:20:34able to get it out, why did it bother you?
00:20:38Out of pride, I wasn't able. So the nights
00:20:41are not nights, I don't sleep, I don't know how I'll wake up tomorrow, I don't know
00:20:45how, where I'll find solutions, because there are no more solutions, there's nothing to do but
00:20:49go bankrupt. Wow, I won't
00:20:52forget that day, it was Friday, I sat in the Knesset,
00:20:55I cried, tears, how did I get to this
00:20:58situation, how did Israel become
00:21:02such a paradise of loans
00:21:05and credit, from every direction, of every kind, uh, paradise,
00:21:08hell, yes, it's expensive here,
00:21:12and... the State of Israel found a patent, instead of dealing
00:21:16with the cost of living, they inject more money into the system, but
00:21:19instead of people buying with money they have, they teach the public to buy with money
00:21:23they don't have. You open a bank account, you get an automatic
00:21:27credit line, this doesn't exist in any country in the world, when you
00:21:30exceed the credit line, it automatically grows, without
00:21:34anyone asking you, and when you've reached a point where it's already
00:21:37an excessive overdraft, they tell you, come take a loan. Credit
00:21:41has become the magic solution for every problem in the State of
00:21:45Israel. You're struggling, you're hurting, take credit, the problem
00:21:48will be solved. And what they don't explain to the public is
00:21:52that credit can also be very, very painful. It's a bit like the opioids
00:21:55that were around 20 years ago in the United States, they gave them
00:21:58to everyone, but this thing creates addiction and this thing prevents
00:22:02us from dealing with the root problem, which is financial management,
00:22:05high cost of living, too low incomes, and instead
00:22:08of teaching the public how to manage properly and solve
00:22:12the problems for real, they teach the public
00:22:16to take credit and postpone the problems until later. The state really
00:22:20went out of its way to create more credit sources for me. A few
00:22:23years ago, it separated credit card companies from banks, saying
00:22:27this would create competition. Today, exactly in the format
00:22:30that exists today, I really have a wealth of places to take credit, the goal was
00:22:34for me to pay a lower interest rate because there would be competition. They decided
00:22:38to increase competition for credit out of a good intention, by the way, to lower
00:22:41costs. What actually happened was that there wasn't really competition on interest rates, but
00:22:45what did happen was that the supply of loans
00:22:49increased, and actually loans.
00:23:23484, that's what will save the situation, come
00:23:25on.
00:23:28What would you take a loan for besides a mortgage? We don't have loans, we don't know what
00:23:32loans are and we don't like it either, but maybe for a car?
00:23:36Hooray! But maybe for a car, I would never take a loan. I drive a Mazda
00:23:39Demio 2003, it still runs. Yes, it runs, you can argue
00:23:43if it runs and how and why. Let's say the Mazda Demio 2003 died, that's it.
00:23:47It can't be saved. What do you do? I
00:23:50buy another modest car with cash, I won't take a loan. With cash, cash, cash. My
00:23:54son just had his Bar Mitzvah and to take him on a nice
00:23:57family trip this summer, that's something you should take a loan for.
00:24:01How much did you take? You can, uh, around 20 thousand. That's why you're
00:24:04in the red too. Yes. You knew he'd have a Bar
00:24:08Mitzvah in 13 years, right? Why didn't you save? I saved what
00:24:11I could, not that I didn't save at all. I think finding
00:24:15moments in life is much more correct and much more
00:24:18memorable than now.
00:24:21To be careful not to be in the red and to prevent yourself from
00:24:24all the pleasures that could cost you a little
00:24:28more than what? We're exactly there all the time, just once
00:24:32and let's do it, no, and we'll fly one day, I'll be
00:24:35old, yes, and I'll be 80 and my children will
00:24:38grow up and we'll stabilize, now it
00:24:41takes many years but it will happen, we absolutely
00:24:45believe in it, I really don't regret any shekel that
00:24:49I spent. Alon
00:24:59is very, very concerned about the future, I really appreciate that approach,
00:25:02but a little
00:25:03less.
00:25:09To show how easy it is today to take loans for hundreds of thousands
00:25:11of shekels, I needed an experimental subject, so
00:25:15I asked my brother to volunteer, we will try
00:25:18through you to see
00:25:21how many loans you can take? Okay?
00:25:24The first stop is to log into your bank's app.
00:25:28Immediate loan up to 180,000 shekels. 180
00:25:32thousand shekels here.
00:25:35I can take it, yes, but don't really
00:25:38do it. Okay, good, now I want you to start
00:25:42calling.
00:25:44The loans, I wanted to ask if
00:25:48I could take a loan from you.
00:25:50No problem, let's check. Okay, so first of all, Lior was excellent, I see you have
00:25:54approval for up to 70,500 shekels. 100,
00:25:58an excellent interest rate of 8.46%.
00:26:01Look how easy it is? He gets money and how
00:26:04much she wants to sell you, at your bank you'll get 100 times better interest than
00:26:08that. I'm Kalbood, hello, a loan for any purpose.
00:26:11I wanted to inquire about a loan for 50 thousand shekels
00:26:15for 84.55.
00:26:20That's 22 thousand 598. You
00:26:23heard what a crazy interest rate she slapped on you there. A loan of 50 thousand shekels
00:26:27you would pay 22 thousand shekels in interest, that's almost 50%. Yes,
00:26:30yes, that's a lot.
00:26:57Well, congratulations, you got another 132 thousand
00:27:00shekels times two and you can increase that. For 1.90 shekels,
00:27:04that's a 10% interest rate. Elad was
00:27:06willing to close me now and my wife wouldn't know, it even made me want to take a loan
00:27:10and then, beware, you're touching it. So now we will calculate the total interest
00:27:13you would pay on these loans. Okay, are you ready? On
00:27:17loans of 432, which is what
00:27:20you managed to accumulate here, you would pay a total interest of
00:27:22196, so what's happening in the black
00:27:25market? This is
00:27:27normal.
00:27:30How much do people understand the loans they take? People don't understand the loans they
00:27:33take. It was real until I met you, I didn't understand that an overdraft was debt at all, I thought it was
00:27:36a service the bank provides, like there's a whole
00:27:40system that does everything possible so that I can't
00:27:43control my expenses. Do you know in loan
00:27:47advertisements, like call a number and it's great and what you can do with it and you can fly
00:27:50to other countries and a Bar Mitzvah for the child and and then finally the interest
00:27:54is visited, they do it very, very quickly, you know that, yes, it's amazing
00:27:58because nobody wants you to know the consequences of it. Now it's a bit
00:28:01like cigarettes. Why did cigarettes stop advertising and why are there warnings
00:28:05with terrible graphic images? Because
00:28:08they understand there's a risk here, it's not just fun. So it's very similar, they tell you take
00:28:12a cigarette, calm down, it will solve your problems, take a loan, calm down, it will solve your problems,
00:28:16it will give you some peace, but it creates a dependency that I can no
00:28:19longer function without this thing, I have to take a loan to make it through
00:28:23the month.
00:28:25simply because I already have a lot of loans to pay back, so I
00:28:29have no choice, but in the end you'll end up not sleeping at night. You'll
00:28:32have endless arguments with your wife because you're not making ends meet. You need
00:28:36to be afraid of this
00:28:37thing.
00:28:41Hello, how are you, Haddad
00:28:44family?
00:28:49How are you all doing? We're really in this together, right? This is my brother,
00:28:53we're really in this together. Suddenly I'm discovering a different Eyal, like an Eyal
00:28:57that I didn't let in, and I'm asking
00:29:00myself today, why? Yes, I'm with
00:29:04her on this. After we settled down, let's really see
00:29:07what, what happened?
00:29:11We are still ending the month with a negative
00:29:14cash flow. Where were we before? Not in minus 1300. We reduced
00:29:18the negative, from tens of thousands of shekels it was
00:29:21negative, to 1,200.
00:29:24We started thinking about every expense. Excellent, like whether to spend or not
00:29:28to spend?
00:29:33Welcome to Tabor, I ordered
00:29:34four,
00:29:39a fish head, wow, what
00:29:40a bald spot,
00:29:43200 years ago, what would they say to people with Tourette's?
00:29:47They would throw them into the fire.
00:29:49I suddenly start screaming, and some teacher shouts at me in class, "Daniel, stop
00:29:53barking and get out
00:29:54of my class!"
00:29:57I used to hit walls and eat my hands.
00:30:01Adam, Adam.
00:30:36Is it going to be a restrained aliyah? Yes, a stately aliyah! Whatever
00:30:39you say, in an election season, Thursday after
00:30:42the news, on Kan 11 and on Kan
00:30:45Box.
00:30:51I'll tell you a little secret. 10 minutes ago, he made me an
00:30:55indecent proposal. Regarding the time
00:30:58and content. And we decided that we... Despite
00:31:06the significant reduction that the Hadad family made in their
00:31:09current expenses, the loan repayments still burdened their cash flow.
00:31:13Therefore, the sudden solution was to take out a new loan.
00:31:17Yes, another loan, but a smarter one, to get rid
00:31:20of the previous loans. We are consolidating loans here. We take all
00:31:24the loans, package them into one loan, spread
00:31:27it over 18 years, and then the monthly
00:31:31repayment goes down. It will go down to 2000, instead of
00:31:336700. This will make a huge difference for you,
00:31:36a huge cash flow. Listen, from heaven high interest rates,
00:31:40at what interest rate are you signing?
00:31:431.7.
00:31:50Today, by the way, their loans have prime plus 56. That's
00:31:54much better than our interest rates.
00:31:56And then you're in a different place. Yes, guys, this is not money
00:32:00for spending. No, no, this is not money
00:32:02for spending.
00:32:04In the midst of the loan consolidation process, a crisis arose. The Hadads discovered
00:32:08that they had another loan in the form of revolving credit
00:32:12on their credit card. This is a debt just like any other. It's just hard to see
00:32:16it, and therefore they didn't calculate it in the large loan
00:32:19they took. You see the credit cards here?
00:32:22Yes, it remained in the
00:32:24revolving credit. Do you understand? This is the revolving
00:32:28credit. You wrote to me about the... right, about the revolving
00:32:32225 still owed. Right. That's what's left.
00:32:35Okay, okay? Everyone, including the...
00:32:38No. I got lost. I also
00:32:42I can say that I looked yesterday at everything that... a young man and I said
00:32:46to myself, how on earth did I get
00:32:50to this? How
00:32:51how?
00:32:54What is revolving credit? Help me understand this? They tell you, "Come
00:32:58swipe as much as you want on your credit card and you'll pay a fixed
00:33:01amount." Ostensibly, the common advertisement we see is,
00:33:05"Come get control of your expenses." Yes. That's
00:33:09of course not real because you swipe 200 but you're charged
00:33:121000. They just defer the 800 to next month, and the month
00:33:16after that, because even next month you buy more than 2000, so next month it's not
00:33:20800 anymore, it's 1500. Where do I see this, this debt
00:33:24that I owe? You don't see it, that's the whole magic. It's great, it's a debt you don't feel,
00:33:28and it accrues interest, of course. It accrues the highest interest rate in the economy, it's
00:33:31an average of 16% interest. Where does it come from for me, because I only pay
00:33:352000? It doesn't go down, it accumulates, it gets added to the debt, and then in the end you
00:33:39get a call and they tell you, "Sir, you've accumulated,"
00:33:43exactly, at a 16% interest rate. Yes, now go, take a loan from someone
00:33:47else and pay us back those 150,000. What's their interest? They understand
00:33:50it's dangerous, they understand that eventually it will accumulate to 100, 150, where will
00:33:54people pay it back from? You have parents, you have children, you'll take the children's savings, you'll
00:33:58take the savings of your elderly parents. The collection rate stands at
00:34:0298.6%.
00:34:08We had a tough month. I didn't sleep much at night, and if
00:34:11I thought telling Eyal was the hardest thing, then no. That's not the hardest
00:34:15thing. How to deal with it is the hardest thing.
00:34:18Like, until this whole process was conditioned, it's
00:34:22not like that and I'm covering all my loans. It wasn't
00:34:26easy and it was frustrating,
00:34:29but we built a plan from it. Exactly, that's
00:34:33the important thing. Right. Yes, but there's still a lot
00:34:37of work. Do you think they succeeded?
00:34:40No, in the first meetings with them, they completely said, "We have nowhere to cut." I don't
00:34:44think they managed to get out of 200 250,000 in debt. Maybe they
00:34:48found a way to start saving. I think there was a very
00:34:52significant change there. I think a change
00:34:55in consciousness and a change in habits
00:34:59in many things. And I think that certainly in the economic sense, even if you don't see them
00:35:02in numbers in five months immediately, I think
00:35:05that's it. Yes. They feel
00:35:09a change.
00:35:13The camera operator.
00:35:45Hello. This is the home of the family that did
00:35:48this. We came to celebrate. Let's go.
00:35:51Hello.
00:35:55You went on a journey here,
00:35:58a journey. You're still on it, still on it. If you had
00:36:01continued for a few more months with your previous behavior patterns,
00:36:05in my opinion, you would have ended up in enforcement. Right, obviously.
00:36:08And today, right, you're on a different vector, you're going in a different direction.
00:36:12Right, that's an achievement.
00:36:15Crazy. That means, you actually took out,
00:36:18you took out within your means. Right, it
00:36:21made me sleep at night. Amazing. It made me
00:36:25convey a message to my daughters. It made me be
00:36:28in a better relationship with him, which was not
00:36:32the case, and it made me have peace of mind. I
00:36:36really must say that there's nothing better than peace
00:36:39of mind. When we met one of the first times,
00:36:42you said you had a dream, yes, that we would eat, I think we could travel,
00:36:46Shira comes and tells me, "Mom, for my Bat Mitzvah,
00:36:49I don't want a Bat Mitzvah, I want us to fly, us
00:36:52as a family," and it was like the first time I could tell her,
00:36:56"Okay, Dad and I will sit down." We'll see how we do
00:36:59it, how we build a budget for it, and we'll fly
00:37:03as a family to Italy. She really wants to go to Italy. How long? Two
00:37:06more years. And today it seems like something you are capable of doing?
00:37:10Yes, we are in a good place, we are in a good place,
00:37:14for new
00:37:14beginnings.
00:37:20Wow,
00:37:23to the Hadad family, to the future, to new beginnings,
00:37:26amen. Loans don't have to be a bad thing.
00:37:30A loan to invest in a business or in your self-development are
00:37:33good loans that can yield a lot for you. But living on
00:37:37loans for current consumption is a recipe
00:37:39for disaster. And yes, part of the responsibility
00:37:43is on us consumers, but part is also on the financial
00:37:46institutions. It's time to change that, like the warning
00:37:49labels on cigarette packs, big warnings against
00:37:52credit, so that we understand better what they are selling
00:37:55us.