Legendary investor Warren Buffett advised people to avoid using credit cards as a piggy bank. He was replying to one of the questions on the credit card industry outlook during the Berkshire Hathaway's annual general meeting.
The advice comes at time when people globally are facing salary cuts, job losses and delay in salaries amid the covid-19-triggered pandemic.
Recalling a discussion with one of his woman friends, who came for his advice on what to do with the money she had. Warren Buffett said, he asked her what she owes to her credit card.
The interest rate the woman was paying on her credit card was around 18%, recalled Buffett. “I don’t know how to make 18%. If I owe money with 18% interest, the first thing I would do with any money