Credit card Annual Percentage Rates (APRs) have climbed sharply in recent years. The average interest rate for accounts carrying a balance is now between 22% and 23%¹.
That level of interest makes mistakes expensive and slows down progress toward financial freedom. The goal is not to fear credit but to Master Your Cash Flow®.
Use tools wisely and create opportunities for long term wealth. CakeClub was built to help you make confident decisions that move you forward.
Understand Your True Cost of Carrying a Balance
Holding a revolving balance does more than cost interest. It tightens cash flow and reduces your ability to save, invest, or create new opportunities.
• Review your current balances and APRs inside CakeClub using the spending and category insights.
• Identify the cards that cost you the most so you can prioritize them.
• Track your progress each month to stay motivated and confident.
Negotiate, Consolidate, or Transfer for Lower Costs
There are practical ways to lower your interest burden.
• Call your card issuer and request a lower APR. Many issuers temporarily reduce rates for good payment histories.
• Consider a 0% balance transfer card for temporary relief, keeping an eye on transfer fees.
• Explore lower interest personal loans from reputable banks or credit unions to consolidate debt.
A 2025 LendingTree survey found that nearly 70% of people who requested an APR reduction received one³. You can also ask for debt forgiveness (part of what you owe) or also negotiate a lower monthly payment (less principal) if you want to raise cash flow.
The easiest money you gain is the money you stop losing.
Prioritize Your Highest Interest Debt First
Not all debt carries the same cost.
• Use the avalanche method and pay the highest APR card first while making minimums on others.
• Let CakeClub show you which categories strain your cash flow so you can redirect spending toward payoff progress.
• Consolidate debt with a bank loan if possible for a longer payout and/or lower interest rate.
Research from the National Bureau of Economic Research shows that targeted repayment strategies significantly reduce long term interest costs⁴.
Build Debt Practices That Support Wealth, Not Stress
Credit is a tool. High interest is the cost of using it without a plan. Resolving high credit card debt frees cash flow and creates opportunities for savings and investing.
Resolving credit card debt creates the opportunity to find free cash flow. You can consolidate debt, borrow strategically, or use lower interest tools. If you will save the difference, consolidation works. If not, focus on aggressively paying off the credit card debt.
Debt does not define you. Your decisions do. CakeClub gives you the financial clarity to make choices that support stability, confidence, and long term freedom.
Written by Amin Boroomand, PhD, CEO CakeClub and Al Zdenek, CPA/PFS
Sources Cited
1. Federal Reserve. (2025). Consumer Credit G.19 Report.
https://www.federalreserve.gov/releases/g19/current/
2. Consumer Financial Protection Bureau. (2025). Credit Card Market Report.
https://www.consumerfinance.gov/data-research/research-reports/
3. LendingTree. (2025). Credit Card APR Reduction Survey.
https://www.lendingtree.com/credit-cards/
4. National Bureau of Economic Research. (2025). Household Debt Behavior and Interest Rate Exposure.
https://www.nber.org/papers/
