Credit card companies. Sigh.

At the beginning, it’s all sign-up bonuses, sunshine and rainbows. Then things take a turn. They only call when they need something. They ghost you, then send a random email on your birthday. When you find yourself in a jam, they’re suddenly unavailable. Maybe you’ve finally kicked them to the curb, and just when you’re back on your feet, they come knocking, full of new offers and promises about just how amazing life will be if you take them back. 

It’s toxic. BUT, it doesn’t have to be. 

How I Make Credit Card Companies Work for Me—Not the Other Way Around

I actually PREFER credit cards as a primary form of payment (versus debit cards and cash). Over the years, I’ve made a pretty penny off credit card companies — think cash back, airline miles, and event perks — and they haven’t made a dime off me. And I want to see you reap these same rewards. 

I’m here to help you take back your main character energy when it comes to credit cards and the role they play in your financial life. Read on to learn more about credit card debt basics, prioritizing debt payoff, protecting against future debt, and credit card usage tips. 

Credit Card Debt in the United States

If you’re like most people in the United States, you’re either currently struggling, or have struggled in the past, with credit card debt. Below are some scary-but-true statistics. 

• The U.S. reached an all-time high for credit card debt in 2024 at $1.2 trillion.
• 49% of credit card holders carry a balance from month to month according to Bankrate (2024). 
• Retail credit card interest rates are charging, on average, a record 28.93% APR. 
• The average sign-on promotional rate for new credit card offers is a predatory 24.59% APR. 
• There is currently no federal regulation on the maximum interest rate that an issuer can charge. 

I’m sharing these statistics to let you know that you’re not alone. The system, by design, is not rigged in ourhttps: favor. So, we’re going to focus on what we CAN control — our money mindset and financial habits — and play by a new set of rules that benefits YOU, not credit card companies. 

Not All Debt Is Bad 

Not all debt is created equal. Take the time to educate yourself on how to use debt to your advantage and what kind of debt to avoid at all costs. 

• Leverage — using debt as a tool to fuel business ventures, property investments, or personal development and growth — is a strategic move aimed at multiplying your future financial gains, ownership, and income. This kind of debt supports growth, earning potential, and equity building, which stands in stark contrast to consumer debt.
• Consumer debt is the one we need to watch out for. It oftentimes reflects spending beyond one’s means and leads to an unhealthy financial cycle where you’re trapped paying for your past for years to come. My take on credit cards and consumer debt is pretty straightforward. Credit cards should not support you living a life you can’t afford. That is not their purpose. So please don’t treat them as such.    

How to Streamline Credit Cards Debt Payoff 

If you currently have credit card debt, paying off this debt needs to be your absolute priority. Before investing in your future or saving for that down payment on your dream home. You simply cannot compete with a 15%+ interest rate.

Follow these 3 steps to simplify the payoff process:

1. List each one of your credit card debts in an organized spreadsheet. Include debt balance, interest rate, and monthly minimum payment. 
2. Analyze your cash flow. This exercise may not be fun, but it’s absolutely necessary. Gain a better understanding of where your money is going, where can you make an adjustment, and identify what free cash flow you have to redirect to credit card payments and accelerate payoff. 
3. Prioritize which credit card you want to pay off first. In most cases, I recommend selecting the card with the highest interest rate. Another strategy is to select the card with the lowest balance, which can often feel less intimidating. Make the choice that works best for you and makes you feel the most confident. Learn more about the 3 best ways to payoff debt here. And remember that you will continue making minimum monthly payments on your other credit cards concurrently.  

How to Protect Yourself Against Credit Cards Debt

Once you’re in the free and clear, work to protect yourself against common pitfalls leading many to fall into debt. 

Here are my top 3 strategies to avoid going into debt:

1. ALWAYS have an emergency fund — a cash savings on the side that is there to support the *inevitable* costly expenses that come up in our lives that we never could have planned for.
2. Only use credit cards for purchases which you could afford to pay for in cash that same month if necessary. 
3. Get into the habit of paying all your credit card balances in full each and every month.

Credit Cards Usage Tips

This is where you make that system work (for you!). 

These 2 tips are best practice when it comes to using credit cards:

1. Use one credit card for all your fixed expenses (so long as they don’t charge a fee), including monthly subscriptions, recurring expenses, etc. This makes it easy to track your fixed expenses and avoid or identify fraudulent activity (which will most typically occur on a lifestyle credit card).
2. Use a different credit card to pay for your lifestyle expenses. I’ve personally used the Chase Sapphire Preferred for over eight years, and I can’t remember the last flight I paid for.

My Favorite Credit Cards (That I Personally Use)

I use the Chase Sapphire for all my lifestyle expenses, earning points that I redeem for travel through Chase or transfer to hotel partners for even greater value. 

I use the Chase Ink Business Unlimited for FinPowered subscription and monthly recurring expenses and receive cash back on all purchases. 

Use Credit Cards Wisely 

Credit card companies don’t have to be the enemy. In fact, informed credit card usage is an essential part of any plan to achieve financial wellness. Educate yourself on the current landscape, design an approach that works for you and your unique set of circumstances, and empower yourself to reap all the (credit card) rewards you so richly deserve. 

Need a wing woman to help you navigate the credit card shark tank? Contact me and tell me more about what role credit cards are currently playing in your life and how I can best support you.