The Absurdity of Complaining About a 7% Mortgage While Paying 20% on a Credit Card

The Backwards Logic of Interest Rate Panic

Picture this: Someone swipes their credit card for a $5,000 vacation, paying 22% interest, no questions asked. But when they hear mortgage rates are at 7%, they clutch their pearls like they just saw a ghost. Make it make sense.

This kind of financial contradiction is everywhere. People will gladly pay 15-28% on a credit card for impulse buys, yet a 7% mortgage rate, which actually builds wealth, is deemed "outrageous." Let’s break down why this thinking is, frankly, ridiculous.

The Credit Card Trap vs. Mortgage Reality

First, let’s talk about how these two debts actually work:

• Credit cards: Interest is compounding daily. If you carry a balance, you're not just paying for what you bought—you’re paying for the privilege of staying in debt.

• Mortgages: A structured loan that builds equity in an appreciating asset. Every payment moves you closer to full ownership.

Example: $500 Monthly Interest—Where Does It Go?

• Credit card: $500 goes to the bank, increasing their wealth, not yours.

• Mortgage: $500 goes toward your home, which (historically) gains value over time.

A house appreciates. That $1,000 TV you put on your credit card? Not so much.

The "Convenience Fees" People Ignore

It’s funny how people rationalize high-interest payments when it feels normal:

• Buy Now, Pay Later for a couch at 30% APR? Sure!

• 20% APR on a luxury vacation? You deserve it!

• Leasing a new car every two years and never building equity? Treat yourself!

But lock in a mortgage at 7%, which at least provides stability and wealth-building? "No way, that’s too expensive!"

Why a Mortgage Is Actually a Good Debt

Not all debt is created equal.

• Credit card debt = Paying a premium for past decisions.

• Mortgage debt = Investing in your future wealth.

A home is a tangible asset that (on average) appreciates over time. Meanwhile, your credit card purchases? They depreciate the second you walk out of the store.

Analogy:

• Paying a mortgage is like planting a tree—it grows over time.

• Paying credit card interest is like watering plastic plants—looks nice, but there’s zero return.

Reframing the Mortgage Rate Panic

Let's put this so-called "high" mortgage rate in perspective:

• In 1981, mortgage rates hit 18.6%! (Yes, you read that right.)

• The 1990s average was around 8-9%.

• The ultra-low 3% rates of 2020-2021 were historic anomalies (not the norm).

A 7% mortgage is far from the worst we’ve seen—and unlike rent, your payment actually benefits you long-term.

Conclusion: Time for a Reality Check

If you’re comfortable handing over 20%+ interest for daily expenses and depreciating assets, but balk at 7% for homeownership, it’s time to rethink your logic. The numbers don’t lie: mortgage debt is a path to financial security, while high-interest credit card debt is a wealth killer.

So next time you hear someone complaining about mortgage rates, just ask them: "What’s your credit card APR?" and watch their face drop.