High-interest debt repayment outperforms any investment strategy
SH
Spencer Harmon
Warren Buffett · Apr 13, 2026
Source: DojiDoji Data Terminal
Repaying high-interest debt is a priority over any investment idea. A $10,000 debt at an 18% rate can put a person in trouble for the rest of their life. This comes from Warren Buffett's philosophy that risking what you have for something you do not need is insane.
The average US credit card interest rate now hovers around 21%, a 45% increase compared to 2020. US credit card balances grew by $44 billion in Q4 2025 to $1.28 trillion. Average total household debt reached $18.8 trillion during the same quarter. Transitions into severe delinquency for credit card balances, mortgages, and student loans increased in Q4 2025.
Warren Buffett
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