Warren Buffett’s The Trouble With Credit Cards

We’re never too old to learn what we could have learned as kids.

Let’s have some fun and watch a Warren Buffett cartoon.

Credit cards can seem like an easy way to buy things, but it’s not a good idea to make a habit of using them.

Credit cards have:

Credit CardSeemingly small, painless minimum payments

Credit CardAlmost invisible, compounding interest

Credit CardHigh late fees and penalties

Making those minimum payments while you continue to charge is like bailing out a sinking ship with a teaspoon. Pretty soon you’re way in over your head.

Credit CardIt seems like free money that doesn’t have to be paid back.

Credit CardWe may not appreciate what we bought with a credit card.

Credit CardWe may buy things we wouldn’t have if we had money.

Credit CardWe may show-off what we got.

Credit CardWe may try to impress others with our credit.

Credit CardWe may intend to pay the money back and not be able to.

The chains of habit are too light to be felt until they are too heavy to be broken.

Instead of using a credit card, Warren suggests to:

DollarSave, earn interest and pay cash for what you want.

DollarAlways be responsible and dependable.

DollarThink of the long-term consequences of what we do today.