In the waning months of his presidency, Joe Biden enacted a number of decisions and executive orders that restocked inflation, sending it up in October through January cumulatively back over 5%.  Some of these steps included additional billions to Ukraine aid and attempting to prevent offshore oil drilling on 625 million acres of the US coast, meanwhile only offering limited FEMA aid ($770 each) to thousands fleeing from burning homes in Los Angeles and North Carolinians still awaiting aid from the flooding caused by Hurricane Helene. 

Millions of families reeling from the past 4 years and starting to catch up as inflation appeared to be back near 2% in September have been caught in the middle again. A great many of them had to rely on credit cards to buy basic necessities, food and medicine. With the the hundreds of thousands now impacted by fires and flooding added to those numbers, credit card debt, which reached a record $1.17 trillion back in October, 2024, has probably soared past that amount in January, 2025. 

While the economic policies of President Donald Trump will likely bring inflation down comparably to levels during his previous term, this effect will not become quantifiable for at least the next 2 fiscal quarters, with price reductions to follow only after that time. As a result, millions of people will rely on credit cards as their sole emergency cash reserve resort for at least the next 6-9 months. Running up significant credit card debt at high interest rates will be a common problem. 

Suze Orman’s 7 Credit Card Tips For Debt Management

 

NY Times Bestselling author, podcaster, and TV show host Suze Orman is one of the most recognized and popular financial advisors in popular culture and media today. Her ascent from near destitute victim of an unscrupulous stockbroker to reaching a Vice-President position at Prudential Securities afforded her an invaluable, hands-on education in the financial world. 

Suze Orman’s advice is often based on universally sound financial principles that apply to economic conditions and scenarios regardless of era. For example, her advice in managing a portfolio during a market crash would be applicable in 1998, 2000, 2008, as well as 2020. 

A fair amount of her advice on credit card use to take advantage of perks and other strategies has captured significant attention from her followers. However, when Bidenomics-fueled inflation followed the pandemic and market crash, she offered 7 credit card management tips that are just as applicable today as nearly 4 years ago. The overarching theme tying all of the tips together is the goal of minimizing debt and accrued interest.

1) Pay Off Credit Card Balances In Full Each Month

The best way to stay out of debt is to avoid incurring it in the first place. Orman acknowledges that many brick and mortar transactions and all online transactions are now conducted with plastic. However, treating a credit card like a debit card and preventing interest charges with prompt payment in full each month is the strongest method of avoiding credit card debt.

2) If Carrying Debt on Several Credit Cards, Pay Off the Highest APR Card First

Described by Orman as a credit card rolldown and by others as a debt avalanche, the goal is to retire the card with the highest interest percentage charged, and then to repeat the process with the remaining cards. In practice:

• Pay the minimum on the lower interest cards.
• Devote a larger payment towards paying off the highest interest card until it is completely paid off.
• Once the highest card can be cut, repeat the process with the next highest interest card.

Prioritization of eliminating cards incurring debt of 20% or higher is a must to get debt under a more manageable level. 

3) Take Advantage of Lower Interest Balance Transfer Offers

Credit cards are a competitive business. Companies that may offer 0% interest for a limited term as an incentive to switch over one’s credit card balance can often save thousands of dollars in interest charges. As long as the advertised interest rate after the 0% promotion term expires is lower than the rate on a currently high interest credit card, this can be a good way to stay on track to eliminate one’s debt overhang.

4) Educating Kids About Credit

Due to the proliferation of purchases now conducted online, many kids have cards under their own names tied to their parents’ accounts. Early education on how to avoid overspending and incurring debt is essential, since the instant gratification of using a phone for thousands of dollars in purchases is so easy. Early discipline that fosters good spending habits and credit management will help the kids also maintain high personal FICO scores. 

5) Regular Credit Report Checking

ID theft is a growing issue. One scam that has proliferated is to take out new credit card applications against someone’s home as collateral and then run up tens of thousands of credit card charges, sticking the homeowner with the bill. Regular Credit Report Checking from Equifax, Experian or TransUnion can notify one of irregularities to their account. Thus, immediate remediation can then be implemented so as not to damage one’s finances any further through illegal activities committed by others. 

6) Cash Back Credit Cards

Chase’s heavily publicized ad campaign features comedian Kevin Hart. Capital One Bank ‘s ads have had Samuel L. Jackson and Jennifer Garner. Cash back cards offer back the most tangible rewards among various perks offered, such as travel points or discounts. Orman advises people who pay off their balances every month to strongly consider a cash back card, which can end up rebating as much as 2% per purchase to one’s account. 

7) Avoid Store Cards

Unless one shops at a store frequently, Orman eschews store cards for the following general reasons:

• High interest rates.
• Useless with other vendors.
• Limited benefits and perks.
• Limited redeemability of any rewards.

Other Credit Card Observations

While unnecessarily taking on debt is a prudent rule of thumb to follow, many people are stuck between a rock and a hard place, since the employment market is still stagnant, and inflation will need some time for Trump’s economic policies to take effect. Disciplined credit card use can help make ends meet while mitigating the staggering debt overhangs that can rapidly accumulate with interest rates that can run from 20% to over 30% APR. 

That said, even if one takes Suze Orman’s Tip #1 and treats their credit card like a debit card, there are a few other upsides over just using a debit card:

• Fraud protection 
• Chargeback policies (i.e. disputing an unrecognized charge and getting a refund).
• Building up one’s FICO score from developing prompt payment habits will aid in getting a job, applying for a mortgage, and a host of other situations where one’s credit score is a factor of decision consideration.

Unfortunately, the diminished opportunities to use cash make these and other scenarios that tie to credit cards increasingly urgent. The best way for one to use credit cards is to attempt to limit interest accumulation that will compound every month.

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