Even if you never carry a credit card balance, this article could save someone in your family hundreds—or even thousands of dollars.
This is not really an article about credit cards. It’s about one overlooked financial decision that quietly steals wealth from millions of Americans every single month. Even if you never carry a balance, someone you care about probably does.
A client recently asked me a question that made me smile. “Rich, I thought the Federal Reserve lowered interest rates. Why is my credit card still charging almost 25%?”
It’s a fair question. After all, when mortgage rates move, they make headlines. Savings account rates change. Treasury yields move. CD rates fluctuate. So, shouldn’t your credit card interest rate move lower too?
Not exactly.
In fact, this is one of those financial realities that surprises almost everyone—and it quietly costs Americans billions of dollars every year.
Did You Know?
- Americans now owe over $1.25 trillion in credit card debt. (1)
- The average new credit card APR (annual percentage rate) is nearly 24%.
- More than half of cardholders now use credit cards to pay for necessities like groceries, utilities, and gasoline—not vacations or luxury purchases.
- Yet a recent LendingTree survey found that 83% of consumers who simply asked their credit card company for a lower rate received one. (2)
Only about one in four people ever make the call.
That statistic alone surprised me. It also reminded me how often the simplest financial improvements are the ones people overlook.
When the Federal Reserve raises interest rates, credit card companies are remarkably efficient at passing those increases along to consumers. When rates fall, however, the reductions often arrive much more slowly—or barely at all.
That is not an accident. It is simply how their business works.
Many of us spend more time researching a $12 bottle of wine or comparing two brands of ketchup than we do reviewing the interest rate on thousands of dollars of debt.
That is not really paying down debt. It’s simply paying for the privilege of carrying it.
Imagine filling a bucket with water while someone has quietly drilled a hole in the bottom. You keep pouring money in…and much of it disappears before the bucket ever fills. That is exactly how high-interest debt works.
If you earn a potential 8% annual return in your investment portfolio but simultaneously pay 24% interest on revolving credit card debt, the math is not working in your favor.
Reducing a 24% interest expense can have an impact on your net worth comparable to earning an unusually high after-tax investment return—without taking additional market risk. Few investments can realistically offer that opportunity.
Several years ago, I met a couple preparing for retirement who were diligently saving every month into their investment accounts yet quietly paying more than 20% on an old credit card balance they had simply stopped thinking about. Eliminating that interest did not just improve their finances—it gave them more confidence that they could actually enjoy retirement instead of worrying about it.
Here is another fact that surprises many people:
Ask whether your card issuer offers a hardship program or promotional reduction. Even customers with excellent payment histories are sometimes eligible.
According to studies by the Federal Reserve and consumer finance researchers, interest charges account for tens of billions of dollars every year paid by American households.
That is money that could have been invested instead.
Interest is either working for you…or quietly working against you.
The difference often comes down to a few financial decisions that take only minutes to make.
Wealth Perspective
As a Fiduciary, I spend most of my time helping families build wealth, reduce taxes, and create dependable retirement income.
One lesson I have learned after more than four decades helping families manage their finances is this: good financial planning is not just about investments.
Sometimes it’s about eliminating unnecessary financial leaks before trying to earn higher returns. Paying 22% or 24% interest while searching for another half-percent in your investment portfolio is a little like trying to fill a swimming pool while someone forgot to close the drain.
The smartest financial decisions are often the simplest ones.
A better interest rate. A realistic spending plan. Planning future large expenses. Those slight changes can produce meaningful results over time.
Before you read another market headline this week, take two minutes to look at your latest credit card statement. If you carry a balance, call the number on the back of the card and simply ask whether a lower interest rate is available.
You may be surprised by the answer.
And if you would like a second set of eyes on how your overall financial picture fits together—from debt management and retirement income to taxes, Social Security, chronic illness coverage, and long-term investment planning, I’m always happy to have a conversation.
Sometimes the biggest improvements do not come from finding the next great investment. They come from fixing the small financial habits that quietly cost us the most. After all, financial success is rarely the result of one big decision. More often, it is the accumulation of dozens of smart little ones.
Five-Minute Financial Checkup
- Review your credit card APR.
- Call and ask for a lower rate.
- Check any annual card fees.
- Review recurring subscriptions.
- Confirm you are actually using your rewards.
Fiduciary Perspective
At Blueprint Financial Group, we believe sound financial decisions begin with education, thoughtful planning, and objective advice. Over the past forty years, I have met families with modest savings as well as substantial wealth who still paid 20% or more on credit card balances simply because no one had ever pointed it out. Wealth is not determined solely by how much you earn—it is often determined by the small financial habits you practice consistently.
Rich’s Take:
One of the things I enjoy most about being a Fiduciary is helping people discover financial opportunities they did not even know existed. Sometimes that opportunity is a better Social Security strategy. Sometimes it’s a tax-saving idea. And sometimes it is as simple as an eight-minute phone call that saves hundreds of dollars a year.
Financial success is rarely the result of one big decision. More often, it is the accumulation of dozens of smart little ones.
Until next time…stay informed, stay disciplined, and remember that financial confidence begins with understanding.
For retirees living on a fixed income, every unnecessary dollar paid in interest is one less dollar available for travel, grandchildren, charitable giving, or simply enjoying retirement with greater confidence.
If this article made you think of a family member or friend, feel free to share it with them. Good financial advice is one of the few gifts that does not cost anything to give.
Rich Eller
- Forbes June 30, 2026
- Lending Tree June 29, 2025
This content is for informational purposes only. The views and opinions expressed here are of the author and do not necessarily reflect the opinion of Spire Wealth Management LLC, and its affiliates. There can be no assurance that any investment products or strategy will achieve its investment objective. There are risks associated with investing, including the entire loss of principal invested. Past performance is no guarantee of future results. Investment Advisory Services offered through Spire Wealth Management, LLC. Richard Eller is an Investment Advisor Representative of Spire Wealth Management, LLC. operating under Blueprint Financial Group, an independent firm