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Mark Cuban has a blunt take on what to do with spare money: pay off your credit cards. He’s called wiping out a card balance “the best place to invest,” because erasing a 22% interest charge is like locking in a guaranteed, tax-free 22% return — and good luck finding that anywhere else (1).
He’s right — and I’d know. I wrote my first book about debt 26 years ago: Life or Debt, then updated it as Life or Debt 2010. (I’m working on a third revision now.) I also spent years on the advisory board of a local Consumer Credit Counseling Service, watching this exact math crush people.
Consider what you’re up against. The average rate on card balances that carry interest now runs about 21.5%, near record highs (2) — up from roughly 16% just a few years ago (3). At those rates, minimum payments barely dent the principal. Most of your money evaporates as interest.
So Cuban’s advice is correct — but “pay off your debt” isn’t a plan. It’s a goal. The plan is the order you do it in. Here’s the exact sequence I’d follow, the same one I’ve watched pull people out of holes they thought were bottomless.
1. First, stop the bleeding
You can’t bail out a boat with a hole still in it. Step one isn’t a payment — it’s the decision to quit adding to the balance. Put the cards in a drawer, or the freezer, or even tear them up, until the debt’s gone.
This sounds obvious. It isn’t. The reason so many people stay stuck is that they pay the minimum while they keep charging — running up the down escalator. I’ve written about the minimum-payment trap, and it’s exactly as ugly as it sounds.
2. Attack the highest interest rate first
Now the math. List every debt by interest rate, highest to lowest. Make the minimum on all of them, then throw every spare dollar at the one charging the most.
When it’s gone, roll that whole payment onto the next debt, and so on. The textbooks call it the avalanche method, and it’s the cheapest way out, because it kills your priciest interest first.
That’s Cuban’s “22% return” in action. The order tells you where to aim. In a minute, I’ll show you where to find the ammunition.
3. Stop the interest clock with a 0% transfer
Here’s a move that supercharges the order above. If your credit is still in good shape, you can shift high-rate balances onto a card with a 0% introductory rate — so for a window, every payment hits principal instead of interest.
Used with discipline — no new spending, and a real payoff plan before the rate resets — it’s one of the fastest ways to dig out.
Stop bogging yourself down with high-interest credit card payments that limit your spending power. If your monthly interest is creeping out of control, it’s time to switch to a card with a 0% intro APR.
FinanceBuzz researchers have identified the best options to help you take back control. These cards offer a generous 0% intro APR on purchases and balance transfers into 2027. Plus, you can earn up to 5% cash back with a $0 annual fee. Click here to check it out.
Quick gut-check — if your money advice is coming from random online influencers, you’re playing a dangerous game. I’ve been a CPA since 1981 and writing about money since before the internet existed. Sign up for the free Money Talks Newsletter and get expert advice that’s been tested by time.
4. Build a small cushion so you don’t backslide
Cuban’s next point is the one people skip: once the interest starts shrinking, build a little cash buffer. Without one, the next surprise — a car repair, a vet bill — goes right back on the card, and you’re climbing uphill again.
You don’t need months of savings to start. A few hundred dollars, somewhere safe and separate, is enough to break the cycle.
Switching to a better bank account is one of the easiest edges out there.
If you’re still at a traditional brick-and-mortar bank, you may be paying monthly checking fees while earning almost nothing on your savings.
SoFi offers a combined checking-and-savings account with no account fees, and with eligible direct deposit you can earn up to 3.80% APY on savings — many times the national average. (APY is variable and can change at any time.)
New members who set up qualifying direct deposit may also be eligible for a cash bonus of up to $400, based on the amount deposited. Terms apply — see details.
Earn up to 3.80% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account between 3/31/26 and 12/31/26, then within 60 days of account opening receive an eligible direct deposit OR $5,000 or more in qualifying deposits. You must maintain eligible direct deposit or $5,000 in qualifying deposits every 31 days to keep the Boost, for up to 6 months. Rates variable, subject to change.
Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
5. Build your Debt Destroyer — the money hiding in your budget
To pay more than the minimum, you need extra money. Most people assume that means earning more. It doesn’t. It means going through your spending line by line and finding what you can cut without sacrificing your quality of life.
That found money — the dollars you free up by spending smarter, not living smaller — is what I call the Debt Destroyer. Every cent of it gets aimed at your highest-rate card.
Perfect example? Insurance. It’s not going to impact your quality of life by paying less for the same coverage. That’s pure found money, no sacrifice. The average full-coverage car premium now runs about $2,697 a year (4), and most people never re-shop it.
Insurers count on you being too busy to check out the competition. But Insurify fixed that.
Unlike other sites that sell your data, Insurify lets you compare real-time quotes side-by-side without the spam.
It’s fast, secure, and rated 4.7 stars on Trustpilot. It takes minutes to check, and it costs you nothing.
Take 5 Minutes Right Now and See If You Can Save Hundreds
6. If you can’t make the minimums, get help
Everything above assumes you can at least cover your minimum payments. If you can’t — if the balances have outrun your income and you’re choosing between the card and the light bill — the rules change. Don’t try to white-knuckle it alone.
If you’ve got $15,000 or more in unsecured debt you truly can’t pay, a reputable debt-relief program may be able to negotiate the balance down. It’s a last resort, not a first one — but it beats drowning.
If you have $15,000 or more in unsecured debt, National Debt Relief is one of the most established debt-relief providers in the U.S. They’ve helped over 500,000 people, hold an A+ BBB rating, and are top-rated by ConsumerAffairs, Top Consumer Reviews, and others.
How it works: fill out a quick form, and a certified debt specialist will review your situation. If they can help, they’ll build an affordable plan and estimate when you could be debt-free. There’s no upfront fee and no obligation to get started.
They can help with most unsecured debt — credit cards, personal loans, medical bills, even some student loan debt.
Take the first step toward debt-free.
The bottom line
Cuban’s last warning is the one I’d tattoo on every wallet: be skeptical of anything that promises a shortcut, because there aren’t any (1). The people who get out of debt and stay out didn’t find a trick. They made a plan, worked the order, and didn’t quit when it got boring.
He’s right that crushing high-interest debt beats almost any investment you’ll find. But the magic isn’t the insight — it’s the order, and the found money you feed it.
I’ve said it for years: borrowing makes lenders richer and you poorer. Reverse that, and you don’t just shed the payments — you get back what they were quietly stealing, which is your freedom to choose what comes next.
Sources: FinanceBuzz (1); Federal Reserve (2); Experian (3); Bankrate (4).
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