Kevin O'Leary Says 'It's Crazy' To Pay 23% Interest On Credit Card Debt. Here's What He Thinks 'The Key To Life' Is

When it comes to personal finance, Kevin O’Leary isn’t sugarcoating anything. The “Shark Tank” investor is once again calling out high-interest credit card debt and urging people to make getting out of it a top priority.

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“The reason I own all the credit card companies is I’m getting paid 23% by people that have credit balances on their cards,” O’Leary said in a recent post on X. “It’s crazy that you would pay interest of 23% on what you owe the credit card company.”

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In an interview clip shared with the post, he went further: “You should pay off your balance there and then retire all your debt and start saving, even if you’re 30 or 40. You’d be amazed the power of compounding interest over even a decade. It’s never too late. The key to life is stay out of debt.”

O’Leary also said credit card debt “comes out of nowhere and bites you” when you’re not ready. He called it “the real silent killer in America” in a separate interview with WNYW-TV’s “Good Day New York,” emphasizing that most people don’t even realize how much they’re overspending.

His advice is to keep it simple: “Take a piece of paper, you don't need a computer, write down the money you made in 90 days and how much you spent during that same period.”

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The reality for many, he says, is that they’re spending more than they earn. And what makes up the gap? Credit cards, with interest rates now averaging around 21%.

U.S. consumers hold $1.18 trillion in credit card debt in Q1, according to the Federal Reserve Bank of New York. Balances fell by $29 billion from the previous quarter.

Billionaire Mark Cuban shares the same view. “If you use your credit cards, you do not want to be rich,” he told Dave Ramsey on “The Ramsey Show.” Cuban suggests paying them off and getting rid of them completely. “If you pay that down you just earned 15 or 20%,” he said. Ramsey added that 75% of wealthy people make staying out of debt a top priority. 

O’Leary insists it comes down to buying only what you can truly afford. He used his watches as an example: “This is a priceless Rolex… probably worth $150,000. Here’s a $300 Timex. Why do I wear them both? Two different time zones, but also this is a beautiful dial for 300 bucks.”

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