Debt · Guide

Credit Card Debt: payoff guide

What makes credit card debt different from other debts, and the best approach to paying it down.

Typical rate: ~22% APR

Credit card debt is the most expensive consumer debt — average APR around 22% as of 2024, with some store cards exceeding 30%. It compounds daily on most cards. Almost always the first priority in any payoff strategy.

Key tip: Pay more than the minimum on credit cards aggressively. The guaranteed 22%+ "return" from paying down credit card debt beats any investment by a wide margin at typical market rates.

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