Thoughts on How To Avoid Debt

You can't get ahead paying 18% interest to creditors. That's just a fact. Even if we pretend that it's 1960 and you invest some money with Warren Buffett's flagship Berkshire Hathaway, you're still not going to get ahead if you have to contend with minimum payments on debts compounding at 18%. Berkshire Hathaway, arguably the best investment you could have made in the past forty to fifty years, has only compounded at about 20%. So if you have high credit card debt, the odds that you'll get ahead are very slim. Without a doubt, the simplest solution is to avoid the debt in the first place. If you don't eat the ice cream, you won't have to lose weight. If you do find yourself in credit card debt, the first thing you have to do is stop increasing the debt, and from there, if you make double the minimum payments, you'll eventually dig yourself out of the hole. If you want to read a good article on avoiding debt in the first place, check out this gem from 'Not Made of Money,' link here: http://notmadeofmoney.com/blog/2011/07/five-ways-to-avoid-debt.html