Buffett recommends not to use a credit card as a source of funds: “It will be better than any investment ideas.”

Billionaire Wallen Buffett It is recommended not to use the credit card as a deposit tank. He emphasized the importance of paying off high interest debt.

what happened: At the annual shareholders’ meeting held in 2021 at Berkshire Hathaway, Buffett shared his personal financial suggestions and suggested that people avoid using credit cards as “banks to be searched” as “banks to searches”. Essence

Buffett shared a anecdote about a friend who made money recently. When she demanded a suggestion about how to deal with funds, Buffett’s first question was about her credit card debt.

He emphasized the importance of paying off the high interest rate debt and pointed out: “If I owe any money at 18 %, the first thing I do with any money is to pay off. Credit card is used as a deposit bank for attack. “

“Because repaying it will be better than any investment idea I have. That’s not what she wants to hear.” He added.

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Buffett pointed out that according to WalletHub, the average credit card rate of the existing account is about 15 %. He asserted that repaying the debt would be more beneficial to any investment ideas he provided.

Why is it important: Statistics from the Consumer Financial Protection Bureau show that by the end of 2018, the total credit card balance is about 900 billion US dollars.

Buffett’s proposal is more relevant than ever, with an average debt of about $ 6,200. High interest rates related to credit card debt may seriously affect personal financial conditions.

Buffett’s proposal emphasizes the importance of prudent financial management, as well as the need to give priority to repayment of debt rather than other financial decisions.

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Warren Buffett