'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
On January 24, 2025, Kevin O'Leary, a Shark Tank investor, aired his views about credit card debt in a clip from his Fox 5 interview. He made a point to mention the exorbitant rates of interest, which can climb as high as 21% on credit cards, and then emphasized the importance of controlling costs to avoid becoming a victim of debt.
"This is the killer in America, the silent killer. That's what I call it," he said.
O'Leary further recommended a simple activity that will make people realize how they stand in terms of financial health and avoid unwanted debt. The Shark Tank investor pointed out that overspending causes significant pressure in terms of finances, especially with high-interest credit cards.
The impact of credit card debt according to Shark Tank investor Kevin O'Leary
Trending
In his Instagram post, O'Leary spoke directly to his followers about the problem of credit card debt. He pointed out how quickly high interest rates can add up on credit cards.
He noted that many people tend to overspend, even those with substantial incomes, which often results in accumulating debt on credit cards with interest rates reaching as high as 21%.
The Shark Tank investor stressed the importance of spending within one's means and advised against using credit cards if one cannot pay off the balances. He also shared a straightforward exercise for his audience.
"Take a piece of paper, you don't need a computer, write down the money you made in three months, 90 days. And on the other piece of paper, how much you spent in the same 90 days? Most people outspend their income, even wealthy families."
He further pointed out where that debt often ends up, saying,
"And where does that debt end up on credit cards at 21%. So if you're not paying off your credit cards, you're paying 21% interest."
O'Leary emphasized the importance of managing expenses to steer clear of debt pitfalls. The Shark Tank investor urged his audience to refrain from buying things they can't afford, highlighting that financial discipline is essential for achieving long-term success.
Kevin O'Leary’s insights on paying off debts
O'Leary also appeared on CNBC Make It in an interview on August 6, 2020, sharing his thoughts about credit card debt and personal finance. He specifically emphasized the importance of paying off debt before indulging in discretionary spending.
According to O'Leary, eliminating debt, especially high-interest debt such as student loans or credit card balances is important to achieving financial success. He said that people should focus on paying off their debts before splurging on non-essential purchases like coffee. He further explained this.
"If you have debt, if you have things that you’re paying interest on, you have to pay those off first. You have to pay [debt] off first before you spend $4 on a cup of coffee.”
In the interview, O'Leary explained how debt can prevent individuals from reaching a significant financial milestone, such as buying a house or saving for retirement. According to him, eliminating debt will give people greater financial freedom so that they may invest or spend without the headache of high-interest payments.
“You’ve got to get rid of those [expenses] first, then you have the luxury of spending money on whatever you want. But not until you’re out of debt!” he shared.
O'Leary further emphasized that a thoughtful approach to every purchase should be taken. Instead of wasting money on something unnecessary, he told people to think if their money could be used in a better way.
“Anytime I pick up something I’m going to buy, I say to myself, ‘Do I really need this?’ Because if I don’t buy it, the money is going to be invested and make money every year for me while I’m sleeping.”
The Shark Tank investor's focus on financial discipline is clear: pay off debt first, and then enjoy the luxury of discretionary spending. This will not only help avoid the negative impact of high-interest debt but also build a foundation for future financial stability.
Catch Shark Tank every Friday at 8 PM ET on ABC, and be sure to catch all the excitement! Fans can also stream full episodes on Hulu to keep up with the latest pitches and business deals.
