Don’t Carry a Credit Card Balance

The problem with credit cards and OPM (other people’s money).

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Oft-heard but still great advice. Stick with me here. Do not carry a credit-card balance! You’re paying well over 20% in interest on that owed amount. What? Crazy. Or another way to look at it is this: by paying it down you’d be earning an over 20% return on your money. After-tax. Guaranteed.

That’s better than the Warren Buffett does. Be clear, when you use a credit card, you are using other people’s money to buy something. Other people’s money. OPM. You know the problem with OPM? The OP always want their M back. With i.