Vivian Tu says investors carrying credit card debt need to stop and pay it off first. The math says she's right

Investment guru Vivian Tu has advised individuals struggling with credit card debt to prioritize repayment before investing. The former Wall Street trader and creator of Your Rich BFF asserts that high-interest credit card debt, which can exceed 20% annually, should take precedence over stock market investments. Tu argues that the potential returns from the stock market fall short of the exorbitant interest rates charged on credit card balances.

Federal Reserve data shows an average credit card interest rate of 20.94% in May 2026, whereas the S&P 500 index has only yielded 13% growth since the beginning of the year. Tu's advice echoes the sentiment of financial regulators, who emphasize the importance of eliminating high-interest debt before investing. While it is not mandatory to eliminate all debt before starting to invest, Tu advises against carrying high-interest credit card debt while simultaneously investing, as the former will likely outweigh any gains from the latter.