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Consumer debt is on the rise, with mortgage balances, student loans, auto loans and credit card balances up across the board.
But “Shark Tank” investor Kevin O’Leary is coming in hot with concrete advice to stifle debt growth, dishing out tips on how to pay down your loans efficiently and build a financial nest egg.
The Bad News
American debt is at an all-time high. The Federal Reserve Bank of New York released its Q2 2025 debt report, showing total household debt at a record $18.39 trillion, up from Q1’s previous high of $18.2 trillion.
In all spending sectors, consumers are struggling to keep up. Mortgage balances grew by $131 billion during Q2 2025, totaling $12.94 trillion at the end of June. Home equity lines of credit (HELOC) balances also rose by $9 billion, marking the thirteenth consecutive quarterly increase.
Credit card balances rose steadily, climbing 5.87% year-over-year. They increased by $27 billion in just Q2 to a total of $1.21 trillion.
Consumers are also falling behind on their student and car loans. Auto loan balances rose by $13 billion and now stand at $1.66 trillion in total. Student loan balances inched up by $7 billion, now totaling $1.64 trillion.
With the rise in the cost of living, Americans’ debt on nonhousing expenses rose by $45 billion, a remarkable 0.9% increase just months after Q1 2025.
What a Professional “Shark Tank” Investor Would Do
“Shark Tank” investor Kevin O’Leary addresses credit card debt in his book “Cold Hard Truth on Men, Women and Money,” dubbing it a financial “cancer.”
“Spending too much is a disease,” he writes, and he recommends his “90-Day Number” approach to tackle debt.
The concept of the 90-Day Number is simple: Consumers monitor their expenses for three months and compare them to the income they bring in over the same period.
A negative number prompts the consumer to deeply scrutinize their budget and cut back on spending to give themselves breathing room. The goal is to come out with a positive number and excess income at the end to use toward paying down debt.
Though the idea sounds simple, O’Leary explains that it’s a tried and true method that works so well he’s invested thousands a month to keep track of his personal and corporate accounts.
“I will never allow a lack of diligence to affect any of my business holdings, which is why I’m offering you this advice about knowing your numbers,” O’Leary writes.
“And this applies as much to a business as it does to your personal finances. Ignorance costs you money, and it’s totally avoidable.”
Debt Consolidation 101
Believe it or not, the right credit card can be a tool in paying down credit card debt. Getting your hands on a 0% promotional APR credit card when you’re carrying high-interest debt provides you with a runway for avoiding future interest charges.
With a balance transfer, you can transfer multiple credit balances to one card, as long as the total debt fits within the card’s limit. Most balance transfer fees range from 3% to 5%, but this can be a small price compared to the interest charges exceeding 20% you’ll be avoiding.
Depending on the promotional period, you’ll usually have a year or longer to pay down your debt without incurring additional interest.
Read more: How To Consolidate Credit Card Debt
The Wells Fargo Reflect® Card is one of the most valuable cards on the market for debt consolidation. It offers a 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. A 17.24%, 23.74%, or 28.99% variable APR applies thereafter. Balance transfers made within 120 days qualify for the intro APR and a balance transfer fee of 5%, min $5 applies.
Another solid option is the Citi Simplicity® Card, which offers a 0% intro APR on balance transfers for 21 months and on purchases for 12 months from date of account opening. After that, the variable APR will be 18.24% to 28.99%. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, a fee of 5% of each transfer (minimum $5) applies.
While neither of these cards offers rewards or welcome bonuses, they are designed as tools for consumers to tackle mountains of debt rather than accumulate new charges and rewards.
Personal loans are also an option to finance your debt, and you can acquire one from a bank, credit union or online lender. Loans come in a variety of term lengths, usually ranging from 12 to 60 months, and offer fixed monthly payments, as opposed to the open construct, pay-it-down-as-quickly-as-possible structure of a 0% APR credit card.
As with credit cards, however, the interest rate you’ll receive on a personal loan depends on your credit score and profile, which can fluctuate based on your total debt.
Bill Shafransky, a certified financial planner and senior wealth advisor at Moneco Advisors, encourages consumers to focus on paying off debt that incurs the highest interest rates first.
“If it’s a low interest rate, I’m not overly concerned or advising clients to get too aggressive with prepaying the low interest-bearing notes, but if they have some higher interest-bearing notes, that debt consolidation could be a very good tool,” Shafransky says.
For consumers with low credit scores who can’t qualify for a loan or a 0% APR credit card, Shafransky advises weaning money off retirement planning for now and remaining focused on getting their debt balances to zero. With time, their credit scores will rise.
Bottom Line
Paying off your consumer debt is a critical first step to ensure financial security down the line. Preparation is key, and having transparency on your spending habits will make it clear what needs to change.
If you qualify, consider applying for a 0% APR credit card or a personal loan to save yourself money and time in the process.