Mark Cuban Says This Worst Investment You Can Make - Is He Right?

Nearly 50% of Americans carry a credit card balance in a given 12-month period, according to the latest data from the Federal Reserve.

Billionaire Mark Cuban believes Americans are making the worst investment of their lives when they rely heavily on credit cards for their everyday purchases (and even larger ones), leaving their balance unchecked and spending a fortune on interest rates.

Find out why Cuban believes this behavior is such a mistake, and learn whether ditching your credit card is really a better way to keep more cash in your wallet.

Cuban famously hates credit cards

Cuban has expressed his disdain for credit cards in the past. During an episode of "The Ramsey Show," Cuban pulled no punches, saying, "If you use your credit cards, you don't want to be rich."

The billionaire business mogul speaks from experience. He has admitted to running up debt on his cards and regularly carrying a balance when he was young. "I would charge something and think I would be able to pay it off and then not be able to," Cuban told Money.

Why Cuban believes credit cards are a lousy investment

Cuban's dislike of credit cards is grounded in the high interest rates they charge. The average credit card today charges an interest rate of nearly 24%, according to LendingTree analysis.

Many lenders charge even higher rates on their credit card products. Such high rates can be devastating to your ability to build wealth. This harsh reality is why Cuban believes credit cards are the worst investment you can make.

The worst investment, in Cuban's opinion

Because credit card rates are so high, Cuban maintains that not paying down your credit cards is the worst investment you can make.

"The best place to invest is to pay off all your credit cards and burn them," he said on "The Ramsey Show." "If you're paying 15% or 20% in interest, if you pay that down, you just earned 15% or 20%."

Unlike with the stock market, the return you earn by paying down credit card balances is guaranteed.

Is Cuban right?

More than three-quarters of Americans have credit cards, according to the Federal Reserve. Is Cuban right to warn them away from using their plastic?

Just looking at the math, it's tough to argue with Cuban's logic. It is virtually impossible to get a 20% return in any investment without taking on any risk. Paying down credit card balances is one of the few exceptions to this rule.

That means paying down your high-interest credit card is almost certainly more of a "sure thing" than putting money into stocks, real estate, or other investments.

When credit cards still make sense

It is important to note that Cuban's antipathy toward credit cards is largely focused on carrying a balance.

Despite his over-the-top rhetoric on "The Ramsey Show," Cuban also told Money that "using a credit card is OK if you pay it off at the end of the month."

In fact, millions of people use credit cards to earn cash back, travel rewards, and other perks. As long as you pay the balance in full every month, credit cards can be a helpful financial tool instead of a weapon of financial destruction.

When paying off credit card debt might not be the best move

Paying off high-interest credit card debt is certainly one of the best financial decisions you can make. But there may be times when it's a mistake to focus too much on paying off this obligation.

For example, you should not pay down credit card debt if it makes it more difficult to pay other important bills, including your monthly rent or mortgage obligation. In addition, crunching the numbers may reveal that it makes more sense to put money into your 401(k) plan at work in order to earn the company matches on your contribution.

In short, there is no one-size-fits-all answer here. As with so many things in life, you need to sit down and do your homework to determine which move is the right one for you.

Bottom line

Cuban is right when he says paying down credit card debt is among the smartest financial moves you can make. It is difficult to quarrel with his advice to pay down any debt with an interest rate of 15% or more.

Still, before you crush your debt in this way, take the time to do the math and consider other options. For example, you might be better off with a split strategy, where you both pay down credit card debt aggressively while also continuing to invest in a 401(k) plan at work.

If you are unsure about how to proceed, consult with a financial advisor or other money professional.

You May Also Like

Almost 80% of Americans Fear a Retirement Age Increase — Here’s the Real Reason Why

By FinanceBuzz Editors

10 Smart Money Moves to Retire Stress Free

By FinanceBuzz Editors

The Easiest Way to Diversify Your Investment Portfolio With Fine Art

By FinanceBuzz Editors

7 Brilliant Ways to Build Wealth After 40

By FinanceBuzz Editors

5 Ways Seniors Are Throwing Away Money

By FinanceBuzz Editors

Best High-Yield Savings Accounts of September 2026

By FinanceBuzz Editors

Help Protect Your Savings From Stock Market Volatility With Gold

American Hartford Gold Benefits

• American Hartford Gold helps individuals protect their retirement by rolling over IRAs and 401(k)s into physical gold.
• Includes FREE IRA rollover and storage for up to 3 years.
• Get up to $20,000 in free silver on qualifying purchases.

Download your guide for free

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms