Leverage is “Killing” Millions

Leverage has not been limited to just real estate. Many people continually buy too much stuff, they don’t need, with Discover, Master and VISA cards. Debts are racked up at 18 percent interest rates and higher and families can’t keep making those hefty payments. The problem usually starts as a tiny snowball but grows to avalanche proportions because of the high rate of compounded interest. For those caught up in this vicious cycle, lives at best are disrupted; for some shattered or destroyed.  Today, our national and local in-debt spending (leveraged) culture can lead us to the same set of problems induced by alcohol abuse – to paraphrase Mr. Buffett.

In today’s world, in order to combat our financial problems effectively, American and Angelino families should save more and buy less stuff on credit. We should buy things we can afford – rather than acquire over-priced goods we must have in our closets or garages tomorrow. We should leave our credit cards behind and pay for items in cash too. None of us should be in a position where we’re paying 18 percent or more interest on big chunks of borrowed money. The leverage is apt to be a crushing blow and take its toll on your family. Let’s collectively learn and heed Mr. Buffett’s simple advice. It can improve the quality of your life. And, you won’t have too much unnecessary stuff surrounding it.