According to a survey by LendingTree, 62 percent of people making over $300,000 a year are carrying credit card debt. Not just using their cards. Not just earning rewards. I’m talking about carrying balances, paying high interest, and living check to check—all while earning what many would consider rich people money.
But it gets worse…
- 46 percent of these high-income earners admit they don’t pay their balances in full each month.
- 40 percent said their debt is causing them stress—despite their big incomes.
- Over 1 in 4 say they’ve been in credit card debt for over a year.
That’s not a momentary slip-up— that’s a spending and lifestyle issue.
What’s the use of making over a quarter-million dollars a year if you’re stuck in the same debt cycle as someone making $40K?
This ain’t about income. It’s about discipline, financial boundaries, and money habits. Let’s be honest:
These folks ain’t broke because they don’t make enough. They’re broke because they spend too much, save too little, and don’t plan for what’s next. They’re robbing Peter to pay Amex—and calling it success.
Let me tell you why: Making money and managing money are 2 separate skill sets.
The Myth of “If I Just Made More…”
I hear it all the time:
“If I could just make six figures, I’d be good!”
“If I made $200K, I wouldn’t have no debt!”
“If I had money like them, I’d be straight!”
Nah. That’s a lie we keep telling ourselves. It ain’t about the income. It’s about the habits. More specifically it’s about managing your net income with your gross habits.
Hard cold truth! If you can’t manage $30K, you’ll mismanage $300K.
I know folks making $50K who:
- Got a solid emergency fund
- Don’t carry credit card debt
- Max out their Roth IRA each year
- And even own a home or investment property
Meanwhile, some high-income earners out here:
- Living off DoorDash, Uber Eats, and Amazon Prime.
- Stuck in monthly payment cycles on $7,000 credit card balances
- Leasing luxury cars they can’t afford to maintain
- And can’t save $1,000 to their name if life hit them sideways
Let’s be clear… High income isn’t immunity from stupidity. Don’t believe me? Ask P. Diddy.
Lifestyle Creep: The Silent Budget Killer
Here’s what usually happens…
You start making more money. You feel good. You deserve nice things, right?
So instead of stacking that money and upgrading your financial position, you upgrade your:
- Car
- Clothes
- Vacations
- Dining habits
- Living space
- And even the people around you
Now you’re making $25K/month but spending $27K/month. That ain’t leveling up—that’s adding $2,000 per month to your credit card balance.
Lifestyle inflation is real. And it’s how folks with “high income” still end up high risk.
Credit Card Debt Is a Symptom—Not the Disease
Carrying credit card debt isn’t just about being short one month. For most people, it’s a lifestyle—a trap of poor money habits dressed up as success.
You know what it really says?
“I want what I can’t afford right now—but I ain’t willing to wait.”
So we swipe. And we pay 20 percent interest. Then we swipe again.
Repeat. Until broke feels normal.
Here’s the kicker: People making over $300K aren’t struggling because they don’t make enough. They’re struggling because they overspend, underplan, and often don’t track where the money is going.
High Earners, Broke Mentality
The survey also found many of these high-income earners:
- Can’t cover 3 months of expenses
- Are maxed out on multiple cards
- Don’t have a budget
- Rely on bonuses or tax refunds to catch up
That ain’t wealth. That’s a financial catastrophe waiting to happen.
What’s the point of being a high earner if you are still stressed about bills? Still dodging calls from Capital One? Still looking at your bank app sideways on the 25th of the month?
Money without discipline is money wasted! It ain’t security. It ain’t freedom. It ain’t wealth.
Real Talk: How to Break Free
You don’t need another raise—you need a reset.
Here’s what I teach my clients—whether they make $30K or $300K:
- Track Every Dollar.
You can’t manage what you don’t measure. Look at your bank statements. See where your money’s going. You’ll be shocked.
- Create a Real Budget.
Not that mental math in your head. A real, written plan that tells your money where to go before it disappears.
- Kill the Lifestyle Flex.
Impressing people with stuff you can’t afford will keep you broke. Flex your peace of mind, not your wardrobe.
- Pay Off the Plastic.
Stop using your credit cards like a crutch. Budget to pay them off, then build a cushion so you don’t fall back in.
- Stack for the Future.
Emergency fund. Retirement. Investments. Insurance. Build your financial house brick by brick—not swipe by swipe.
You can’t buy your way out of poor money habits. You can’t earn your way past bad decisions. You can’t “high income” your way to financial peace. $300K a year and broke? That’s not a flex—that’s financial failure wrapped in Gucci.
Let’s normalize:
- Having money in the bank
- Living below your means
- Saying NO to stuff we can’t afford
- Building wealth without the spotlight
Because the truth is…
More money just exposes who you already are.
If you’re financially reckless at $50K, you’ll be reckless at $500K.
So don’t chase the raise. Chase wisdom.
And when you get the bag, protect it—don’t play with it.
(Damon Carr, Money Coach & Tax Pro can be reached at 412-216-1013 or visit his website at www.damonmoneycoach.com)
Helping you flip your finances from stressed to blessed—one smart decision at a time.
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