Large, intimidating goals like paying off debt can be made manageable by reframing them into small, daily actions. Instead of focusing on a large lump sum, breaking it down into a tiny daily goal (e.g., $7/day) builds momentum and overcomes the psychological overwhelm that leads to inaction.

Contrary to the common perception of users paying off balances monthly ("transactors"), the majority—about 60%—are "revolvers" who carry debt. This group is the primary source of profit for card issuers, as they are subject to interest rates now averaging a staggering 23%.

Common wisdom to rapidly pay off a mortgage is suboptimal. Due to compounding, investing extra cash—even if the return rate merely matches your mortgage interest—will generate significantly more wealth over time. One investment compounds up while the other debt amortizes down, creating a large wealth gap.

The same banks issuing high-interest credit cards offer substantially cheaper personal lines of credit to customers with identical FICO scores. Despite being a logical tool for consolidating expensive card debt, these products receive almost no marketing, making them largely invisible to consumers.

While many assume high credit card rates cover default risk, actual charge-offs on revolving balances average only 5.75%. This is a significant cost but accounts for less than a third of the typical interest rate spread, indicating that other factors like risk premiums and operating costs are major drivers.

A surprisingly large portion of high credit card APRs covers operating expenses, particularly marketing. Issuers like Amex and Capital One spend billions annually on customer acquisition. This spending is passed directly to consumers, as higher marketing budgets correlate with higher chargeable rates.

Affirm's CEO argues the core flaw of credit cards is not high APRs, but a business model that profits from consumer mistakes. Lenders are incentivized by compounding interest and late fees, meaning they benefit when customers take longer to pay and stumble.

Contrary to common advice, withdrawing from an IRA and paying taxes to clear high-interest debt offers a guaranteed, risk-free return. This "return" from debt elimination can be financially superior to the potential, yet risky and unguaranteed, returns from keeping the money invested in the stock market.

While typical banks earn a 1-1.2% return on assets (ROA), credit card-focused banks achieve ROAs of 3.5-4%. This exceptional profitability, driven by high interest rates, explains why the sector is so attractive to new entrants, as it is one of the most profitable areas in all of finance.