[From Yahoo Finance: written by Doug Whiteman, MoneyWise, May 15, 2020]
When Warren Buffett speaks, investors listen. The folksy financial guru who eats at McDonald's and still lives in his hometown of Omaha, Nebraska, is a billionaire many, many times over, so followers hang on his every word for tips on how they can be wealthy, too.
Lately, ears have been pricking up as Buffett has shared some money wisdom about the coronavirus calamity.
See what the "Oracle of Omaha" has had to say about the pandemic and credit card debt, investing in stocks and more.
...Don't carry credit card balances
With layoffs skyrocketing during the outbreak and lockdowns, Americans have been piling on more credit card debt: 47% now carry balances, up from 43% in March, and nearly a quarter say they've taken on more card debt amid the economic crisis, a CreditCards.com survey found.
Turning to credit cards because of financial hardship is one thing, but Buffett says some people use them as "a piggy bank to be raided." He recently told his company's shareholders about a friend who asked what to do with a windfall. It turned out she also had credit card debt — at 18% interest.
"If I owed any money at 18%, the first thing I’d do with any money I had would be to pay it off," Buffett said he told her. "You can’t go through life borrowing money at those rates and be better off."
Whenever credit card debt seems overwhelming, a good first step toward getting rid of it is to scoop it all up into a debt consolidation loan — at a much lower interest rate than 18%.