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The credit card trap and how to escape it

The average american with a credit card holds a balance of $6,500... at an average of 22% APY. That is a brutal situation to be in and that's just the average! That's around $1,430 being drained from your pocket JUST to cover interest. Consider that federal minimum wage has been stagnant for decades and so few americans have meaningful margin in their budget and it feels like an inescapable trap right? Well that's by design. Credit card companies make most of their money through interest payments and they want to keep you in debt for as long as possible.

But fear not! There is a way to escape this trap but it won't be fun, not that being in the trap in the first place is fun but you gotta double your suffering now to reduce it later. Assuming you have the money left over after bills to make extra payments on your card balance, DO IT. Do it before you make any more investments. Think about it like this, on a good year the stock market sees a 10% return, but it could also go down or not move at all. If you make a payment on your credit card with a 22% interest rate, that's a guaranteed 22% return! Aside from an employer match for a 401k or 403b, that is the best immediate return you can ever expect to see in finances.

If you have multiple cards, I would suggest prioritizing the card with the highest APY for mathematically optimal results.

Prioritizing making card payments is going to suck, it really will. You won't have much money left to spend on yourself but check into your balance monthly to keep your morale up. Wether you have $100 in credit card debt for $50,000 you can escape it. It just takes consistency and a bit of frugality.