Couples’ Guide to Avoiding Credit Card Debt
On Wall Street, I built businesses by respecting leverage — use it wisely, or it uses you. Couples face the same risk with credit cards. With average APRs at 20.6% (Federal Reserve, 2023) and the average household carrying $6,365 in card debt (Experian, 2023), discipline is non-negotiable.
1. Spend Only What You Can Pay in Full
- Treat credit cards as a payment tool, not free money.
- Pay balances monthly to avoid 20%+ interest.
2. Align on Budget Rules
- Agree on spending caps for categories like dining, shopping, and travel.
- Shared rules reduce surprises and conflict.
3. Use Alerts & Tracking Apps
- Set card notifications for purchases over $50.
- Apps like Mint track categories in real time.
4. Prioritize Emergency Savings
- Even $1,000 fund prevents reliance on cards for surprises.
- ROI: avoids debt spiral from medical bills or car repairs.
5. Limit Number of Cards
- Too many accounts increase temptation.
- Stick to 1–2 cards with cashback or rewards.
6. Pay More Than the Minimum
- A $3,000 balance at 20% APR takes 16 years to pay off with minimums.
- Paying in full monthly saves thousands in interest.
Final Word
On Wall Street, debt managed poorly sank empires. For couples, the same principle applies: avoid carrying credit card balances, align spending habits, and build savings. True financial freedom is owning assets — not owing interest.
