Mark Cuban: Credit Cards Are Blocking Wealth

Mark Cuban: Why Credit Cards Are the Enemy of Prosperity

2 min read

Billionaire entrepreneur Mark Cuban has once again made headlines by sounding a strong warning: credit cards, he says, can derail a person’s path to prosperity. In his view, “plastic is the enemy of prosperity.”

Why Cuban Says Credit Cards Sabotage Wealth

Cuban argues that when consumers carry high-interest credit card debt—often with rates around 15–20% APR—they are effectively paying for guaranteed negative returns. He urges that paying off credit card balances offers a “return” that few investments can match, because eliminating 15–20% interest is like earning that same rate risk-free.

In comparing debt to investment, he notes that many invest in markets expecting 10% returns, while their credit card costs may exceed that. Thus, as long as credit card debt remains, it can act like a drag on one’s financial progress.

Cuban’s Own Experience & Advice

Cuban’s perspective comes from experience. Having climbed from modest beginnings, he views disciplined financial habits—especially avoiding debt—as foundational to wealth building. His common advice: “Pay off all your credit cards and burn them.”

He often says that even investing in stocks or real estate won’t help if you’re paying exorbitant interest rates. By eliminating debt first, he argues, you free up capital and eliminate a still-returning drag on your finances.

Implications for Readers & Investors

This message is especially relevant for those trying to juggle debt and investment:

Prioritize high-interest debt before investing aggressively.
Resist temptation to carry balances for rewards or points—the cost often outweighs the benefit.
Use freed-up cash flow toward diversified investments once debt is managed.
For financial planning and advisory firms, this advice underscores the importance of debt management strategies in wealth-building services.