Mark Cuban is a self-made billionaire. He has some advice for people who want to follow in his footsteps. He stated that people who want to be rich should avoid using a credit card. He also stated that self-discipline is required in order to get rich.
In 2014, he was asked about what he wished he would have known when he was in his 20s. He stated that he wished he would have never used credit cards. He also stated that he would have been a stock market genius if he would have paid off his cards within 30 days.
Credit cards can be a major problem because they cause people to overspend. Most credit card companies only require that you make a minimum payment each month, which is usually equivalent to 1 to 3 percent of the total balance. That is why American households are $1 trillion in debt.
It is estimated that 71 percent of people in America have at least one credit card. More Americans are also opening credit card accounts. In 2017, there were 364 million credit card accounts opened. Mark stated that the best solution to the credit card debt problem is to avoid using one at all.
Many people do not agree with Mark’s approach to using credit cards. David Bach is a financial expert. He stated that people should get their first credit card while they are in college. He stated that if people stick with a few basic guidelines, then they can avoid credit card debt.
David recommends that you pay your credit card bills on time. You should also pay the balance in full each month. However, if you find yourself struggling with credit card debt, then Mark’s advice to not use credit cards at all will likely be a better option.