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Investors with high-interest credit card debt urged to pay balances first
Average credit-card interest on accounts assessed interest was 20.9% in May 2026, and one comparison showed it could outpace stock-market gains over the same period.
Vivian Tu, a former Wall Street trader and content creator behind Your Rich BFF, told listeners on her Net Worth and Chill podcast that people carrying high-interest credit card debt should focus on paying it off before starting to invest in the stock market, arguing the interest costs create a tough barrier for portfolios to overcome.
In the episode, Tu said the guidance is especially important for balances with interest rates that can exceed 20% and warned that investing while credit card debt keeps compounding can leave investors “further behind” as the debt grows.
She cited Federal Reserve data showing the average interest rate on credit-card accounts assessed interest was 20.94% in May 2026, and contrasted that with a benchmark equity reference point, noting the S&P 500 was up 13% since the start of the year as of market close on Aug. 14.
Tu added that stock-market returns are not guaranteed, and that when paying roughly a 21% carrying cost, the math may eliminate or overwhelm gains from investing, depending on how long the debt remains unpaid.
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