Warren Buffett’s Top Finance Tip for Americans Right Now
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Warren Buffett has one bit of advice for Americans struggling with credit card debt right now: stop using credit cards as a piggy bank.
According to Yahoo Finance, the billionaire investor made the comments during Berkshire Hathaway’s annual shareholder meeting, saying, “I think people should avoid using credit cards as a piggy bank waiting to be raided.”
And if you have some extra money to spare, the 89-year-old recommends using that money to pay down any credit card debt you have, particularly if it’s at a high-interest rate.
“If I owed any money at 18 percent, the first thing I’d do with any money I had would be to pay it off,” Yahoo Finance reports Buffett as telling shareholders. “[Paying it off] is gonna be way better than any investment idea that I’ve got.”
“It just doesn’t make sense – you can’t go through life on money at those rates and be better off,” the businessman advised.