What interest rate example does the speaker mention?

Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

Pro Tip to Paying Off Credit Card Debt

22 Feb 2025 · 0 min

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0:24

A short YouTube clip by Ramit Sethi giving one actionable tip for handling credit card debt: set up an automatic payment that is more than the monthly minimum (he cites a 27% interest example), pay aggressively if you can’t clear the balance immediately, and avoid future credit card debt.

Questions this video answers

27% interest rate.

Here's a pro tip. If you have credit card debt and you can't pay the bill in full, don't worry, you can still set up an automatic payment. Don't you dare set it up for the monthly minimum. You better be paying more than that on a 27% interest rate. Pay more than the minimum. But importantly, if you can't pay everything off at once, I'm not going to beat you up. I would like for you to pay that off aggressively and then never get into credit card debt again.