The Slippery Slope of Debt

Philip over at Deliver Away Debt recently put out a great post about the slippery slope of debt in cluttering your life with unnecessary credit card payments. After all, every dollar you spend on credit today places a claim on your future earnings. Instead of shipping off a $300 a month credit card payment to Capital One, wouldn't you rather be investing $300 a month in Berkshire Hathaway? All it takes is a couple of boneheaded purchases on a credit card with a 14-25% interest rate to put you in an unfavorable situation. And as the pile of debt mounts, it's easy to develop the mindset of 'this little purchase won't make a difference' as your debt gradually increases. As Charlie Munger, Warren Buffett's right hand man once said, 'No one gets ahead paying 18% interest.' And I couldn't agree with Mr. Munger any more. If you find yourself accumulating large debts, the most important thing to do is stop the bleeding--cut up the cards, get your spending under budget, and then throw as much money at paying off your debts as possible without putting yourself in a financially vulnerable position. Be sure to check out Philip's tale of his journey in overcoming this type of experience by visiting his link here: http://deliverawaydebt.com/debt-elimination/how-i-delivered-away-my-debt/