Is Your Debt "Significant" Enough to Matter?

I recently had a conversation with a potential client that truly made me pause. I asked if they were struggling with managing credit card debt, and their response caught me off guard:

"Oh, I mean, I have some debt, but it's not significant."

It made me wonder—where do we draw the line between significant and insignificant when it comes to debt?

From my professional perspective, any debt that costs you money is significant. Whether you're paying interest on $2,000 or $10,000, there is still a financial cost. The reality is that even a "small" balance can add up to thousands in interest over time, stealing from your future savings, investments, and financial freedom.

The Hidden Cost of Carrying a Balance

Many people underestimate how much their credit card debt actually costs them. That’s because the minimum payment trap makes it seem manageable—but in reality, it stretches out payments for years, with the majority of your money going toward interest, not principal.

💡 Quick Tip: Take a moment to pull up your year-end credit card statement and look at the total interest paid in 2024.

👉 Any number above $0 is significant.

Even if your balance doesn’t feel overwhelming, think about what that money could be doing for you instead—building savings, investing, or creating financial security. Every dollar spent on interest is a dollar that isn’t working for you.

A Mindset Shift: Every Dollar Counts

Debt isn’t just about numbers—it’s about mindset. If you find yourself brushing off your balances as “not significant,” ask yourself:

✅ Am I comfortable giving away money to interest that could be going toward my goals?

✅ If I had an unexpected expense tomorrow, would this debt make it harder to handle?

✅ Am I using credit as a tool, or am I stuck in a cycle of maintaining a balance?

Take Action Today

If you’re carrying any credit card balance, it’s worth creating a strategy to eliminate it faster. Small changes—like increasing payments, cutting unnecessary expenses, or automating debt payoff—can make a huge difference over time.

💡 Need a personalized plan to break free from credit card debt? Let’s talk. I help women take control of their finances and make their money work for them—not the credit card companies.