We Have The Highest Credit Card Debt In The History Of Earth, Says Grant Cardone. 'America Needs To Be Educated About Wealth Creation'

In a recent interview on Fox Business, entrepreneur and real estate mogul Grant Cardone shared his thoughts on the current state of the American economy, focusing on issues like housing, credit card debt, and the importance of financial literacy. 

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Cardone pointed out that Americans “Have the highest credit card debt in the history of planet … at the highest interest rates in history." With debt exceeding $1 trillion, this is a significant problem, especially since credit card interest rates are higher than they've been in decades, with the average rate now above 20%. Many people rely on credit cards to cover their everyday expenses, which only deepens their debt.

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Americans of all ages are dealing with more debt, but Gen Z and millennials are seeing the biggest increases in their total debt and the largest drops in their credit scores, according to Fortune. However, Gen Xers have the highest average credit card debt ($8,900) and saw their balances increase by 39% in the past year.

Cardone believes this heavy use of credit cards is a sign that people aren’t being taught how to manage their money properly. “America needs to be educated about wealth creation,” he said. Instead of just aiming to buy a home or achieve the typical American dream, he argues that people should learn the strategies that wealthy individuals use to build and preserve their wealth.

See Also: Are you rich? Here’s what Americans think you need to be considered wealthy.

He also discussed the growing gap between mortgage payments and rent in big cities, especially in California and New York. According to Cardone, this gap has doubled, making it harder for people to afford a home. Even though mortgage rates have dropped recently, they're still relatively high.

Cardone explained why investing in rental properties, like apartment communities, is a smarter move right now than buying a home. According to him, rental properties will be a good investment for the next 10, 20, or even 30 years, particularly in states like Florida and Texas, where the laws and taxes are more favorable for property owners.

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“There’s endless opportunities, more opportunities today to produce extra revenue than there ever has been in history,” says Cardone. With the rise of digital technology, starting a business or finding additional ways to make money is easier than ever. 

When Bartiromo asked him for ideas or examples of investing opportunities, he mentioned online sales, consulting services, cosmetics, and alternative health industries as examples from his portfolio.

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