Two important concepts about debt

He believed that in order to change the turret financial situation, it is important for community to stop getting change magnitude loans. However, he also agreed that there ar debts that jackpotnot be keep offed, such(prenominal) as student loan correspond to the high teaching fee. Therefore, he concluded that buy uping loan has risk, and it is important for future youth to avoid debt as much as they can. According to warren tabulator, the problem of change magnitude debt is getting worse and worse.Many people become rely only on starting more loans to pay back their debts however, this technique would only be harmful to peoples insane since their debt could never be completely paid. In the youthful years, people get used to pay their outgo with credit cards. By using credit cards, people are less likely to take a leak how much they are spending since they are not carrying the actual cash. Therefore, people do not think carefully when they are buying stuff.Without tru e cash, they could not recognize whether the harvest-feast is actually worth for the price and whether the product is really necessary for buying. People would not identify the seriousness of their spending problem until the monthly bills come to their hands. Unfortunately, omen of them would not change their habits instead, they superpower open a new credit card to recover the others debts. Gradually, their debts are increasing, and they would not be able to pay them back to the banks.Thus, Warren Buffet suggested people to begin eliminate their bad habits of borrowing loans step by step. People can organize their daily expenses into a notebook or to their technical devices. They can mark down all their spending, so that they would be able to find out what are necessary and what are not. By doing so, they can only spend their money within their budgets, so that they can eave money rather than keeping borrowing loans. On the other hand, Warren Buffet admitted that some loans are n ot avoidable according to the situation.For instance, the college tuition fee is getting higher and higher each year. The University of California has middling agreed to increase 5% tuition fee to its students, which bring a lot of financial problems to many families. One of my friends was anger and lost by and by the US system announced the news, because her family is also stipendiary tuition for her twin sister and her brother at the same time. In this situation, her family has o borrow more loans to pay for the tuition otherwise, the three children will not be able to get education.However, Warren Buffet suggested that students should try to minimize the loans they borrow. For example, I think they should try to do work-study or do part-time jobs as long as they can help their parents from getting more debts without paying back much. Also, people should try their best to find the best banks to borrow loans, which would offer them the lowest interest rates and the most benefit s. Overall, I was confident(p) that it is important for people to know how to engage their money and become ken of the amount of money they are borrowing.