The worst plague of our current age is not COVID-19. It is debt, credit card debt, student loan debt, basically, consumer debt.
Years ago, consumer debt did not exist. Debt was used by businesses to provide capital, so they could expand their business and be able to meet market fluctuations.
However, in 1950 Diner’s Club and American Express created “plastic money”. Thus, began the start of the worst plague. It is poison for consumers. People are naïve and think they can afford something they want even if they don’t have the money to pay for it. They don’t have cash, but they have “plastic money” – credit cards. You get instant gratification by getting the item you want right now. Who cares that it will take you years to payoff. By putting it on the card, you get to use it now!
My friend, you should care. Debt will drown you. Interest will accrue and grow that debt. It will consume more and more of your hard-earned paycheck every month. Most of today’s consumer will only make the minimum payment on their debt. Thus, the principal just grows and grows. The plague becomes larger and larger.
Fortunately, there is a vaccine that is tried and true for this plague. It is to learn to live below your means. To STOP using debt and start paying down what you owe. It doesn’t matter whether you use the debt snowball method or the debt avalanche method to get out-of-debt. You just have to use it before this plague consumes you faster than COVID-19.