By William Erickson
The story of Naomi Fiasco
Naomi was your typical, everyday Chili's waitress. She worked about 50 hours a week, made minimum wage, and could barely pay rent for her 2-room apartment. She was taking loan after loan to pay for school, and she realized she was getting nowhere. So she got a credit car, thinking she could use it as a kick-start to her crummy life. After a month, she had maxed it out. After another 6 months, she owed about $60,000 in credit debt from her 7 or so cards. She lived the rest of her life in debt and poverty.
Don't be like Naomi. Stay away from credit cards and don't take out loans unless you have to.
Financial Advice from Warren Buffett: How to Get Out of Debt - Avoid Credit Cards