This article may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services. Nonetheless, our opinions are our own.
The information presented in this article is accurate to the best of our knowledge at the time of publication. However, information is subject to change, and no guarantees are made about the continued accuracy or completeness of this content after its publication date.
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, a US-based personal finance app focused on cash flow optimization, card reward maximization, and guilt-free money management support, 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.
Voted "Best Overall Budgeting App" by Forbes and WSJ
Monarch Money helps you budget, track spending, set goals, and plan your financial future—all in one app.
Get 50% OFF your first year with code MONARCHVIP
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
Reviewed and edited by Albert Fang.
See a typo or want to suggest an edit/revision to the content? Use the contact us form to provide feedback.
At FangWallet, we value editorial integrity and open collaboration in curating quality content for readers to enjoy. Much appreciated for the assist.
Did you like our article and find it insightful? We encourage sharing the article link with family and friends to benefit as well - better yet, sharing on social media. Thank you for the support! 🍉
Article Title: Five Ways to Rethink Debt to Regain Control of Your Cash Flow
https://fangwallet.com/2025/12/25/five-ways-to-rethink-debt-to-regain-control-of-your-cash-flow/The FangWallet Promise
FangWallet is an editorially independent resource - founded on breaking down challenging financial concepts for anyone to understand since 2014. While we adhere to editorial integrity, note that this post may contain references to products from our partners.
The FangWallet promise is always to have your best interest in mind and be transparent and honest about the financial picture.
Become an Insider
Subscribe to get a free daily budget planner printable to help get your money on track!
Make passive money the right way. No spam.
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned. The opinions expressed here are the author's alone.
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur including the potential loss of principal.
Source Citation References:
+ Inspo
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/
