Real estate mogul Grant Cardone has made his stance on consumer debt crystal clear. In a recent post on X, the real estate mogul and motivational speaker warned that debt doesn’t just slow people down financially—it traps them.

“Consumer debt makes slaves!” Cardone wrote. He broke it down into five main consequences: “Can’t invest, can’t keep up, pay extra for everything, can’t build net worth, never live stress free.”

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Cardone’s post reflects a growing concern in the U.S. as consumer debt keeps climbing. According to LendingTree TREE, Americans owed a record $251 billion in personal loan debt as of the fourth quarter of 2024. That’s a $6 billion jump from the year before.

And it’s not just the total amount. TransUnion TRU data shows that the number of Americans with personal loans hit 24.5 million, up from 23.5 million a year earlier. While personal loan debt still makes up just 1.4% of all consumer debt, it accounts for 5% of non-mortgage debt. For comparison, credit card debt is much higher, sitting at $1.211 trillion, or 6.7% of total outstanding debt.

According to TransUnion, the average personal loan balance per borrower is $11,607. Nearly half of borrowers take out loans just to consolidate or refinance other debt. Another 10% use the money to pay everyday bills.

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As Cardone wrote, “You pay extra for everything” when you’re stuck in debt. High interest rates only make it worse. Borrowers with excellent credit scores — over 720 — can expect personal loan APRs around 17.71%. But for those with poor credit — below 560 — rates skyrocket to over 200%, according to LendingTree data.

Despite high costs, personal loan use is expected to grow. People turn to them as credit card debt rises. LendingTree notes that many borrowers aren’t necessarily in crisis—they might be remodeling a home or covering a big expense. Still, as Cardone puts it, for those already stretched thin, more borrowing can result in serious stress and financial strain.

Delinquency rates also tell a cautionary tale. TransUnion reported that as of Q4 2024, 3.57% of personal loan accounts were 60 or more days past due. That’s an improvement from the year before but still higher than rates for mortgages — 1.29% — or credit cards — 2.56%.

Cardone’s message is harsh but timely. With debt balances climbing and millions relying on personal loans to stay afloat, his warning resonates: consumer debt doesn’t just drain your wallet—it can drain your peace of mind.

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