How To Make Money in 2025 Through Strategic Use of Credit and Debt
Written by
Martin Dasko
Edited by
Rebekah Evans
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According to data from TransUnion, Americans’ average credit card balance was at $6,380, an annual increase of 4.8% in the third quarter of 2024. The combination of soaring inflation rates over the last few years and higher interest rates has made it challenging for consumers trying to get by. While getting stuck in credit card debt can feel overwhelming, there are scenarios where taking out debt upfront can lead to making more money over time if you use this leverage correctly.
Here’s how to use your credit and strategically take on debt up front to make money over time.
Find Out: 3 Signs You’ve ‘Made It’ Financially, According to Financial Influencer Genesis Hinckley
Maximize Credit Card Cash-Back Rewards
“The easiest and most risk-free way to make money from your credit card is to maximize cash-back rewards,” said Kristy Kim, financial expert and founder of TomoCredit. “Many credit cards offer cash-back perks on everyday purchases like groceries, gas and dining.”
Since you already have to spend money on these things, you may as well get some benefits from it. By leveraging credit cards in this way, you can earn cash-back rewards, which can add up over time and add more money to your bank account.
R.J. Weiss, certified financial planner (CFP) and CEO of The Ways to Wealth pointed out that he shifted his strategy recently to cash-back cards, with rates increasing in 2024.
“This year, I aim to earn as much cash back as possible across my spending,” he added. “One big advantage of credit card rewards is that they’re tax-free, which makes it a great way to boost your income without adding to your tax burden.”
By taking advantage of cash-back rewards, you can earn some extra money without any additional effort on your end. You could earn a decent amount of money by the end of the year that you could put toward your savings or other financial goals.
Look for Sign-Up Bonus Offers
“In addition to cash back, I’ve also taken advantage of signup bonuses, especially those that net around $1,000,” Weiss said. “Just doing two or three of these a year can add up.”
You’ll want to be on the lookout for credit cards with large sign-up bonuses. If you were already planning on spending the money on expenses, you may as well reap the benefits of sign-up bonus offers.
Take Advantage of Zero Percent APR Offers
“Credit card users who want to use their credit card to actually make money should take advantage of zero percent APR offers by using those cards for large purchases,” Kim explained. “Then, take the money that you save on interest and invest it or save it in a high-yield savings account.”
If you can find a zero percent APR offer on a credit card, you could leverage this to spend less money on interest, which would free up some funds for you to invest in a high-interest savings account or any other savings vehicle of your choice.
Use Travel Rewards to Your Advantage
Kim said using travel rewards cards can be another way to make money from leveraging your credit card. By using credit cards with solid travel perks, you can earn points and miles that could be used to pay for flights and hotels so that you don’t have to dip into your own savings when planning your next trip. Your travel credit card could offer additional perks like free checked bags, early check-in and airport lounge access.
Invest in Your Education and Earning Potential
If you want to take on debt upfront strategically to make more money in the future, you can do so by financing your education. You can use your credit card to pay for a course or a certificate program that could help you advance your income-earning potential. If you find a low-interest credit card or loan offer, you can leverage this debt to make more money in the future if you conduct the proper research on which program would help you the most.
While this strategy can be risky, there may be times when you’ll want to consider using debt to help you get to the next level. As long as the loan terms are manageable and you’re reasonably confident that the education will increase your income, you could help your future self.
A Few Rules for Taking on Debt
While there are many ways that you can use debt strategically to make more money, it’s crucial to point out that you have to make wise money moves. These are a few rules that you’ll want to keep in mind before you strategically use debt.
- Avoid high-interest loans. If you want to use your credit card to make money in 2025 strategically, you have to seek out low-interest options.
- Maintain an emergency fund to handle possible expenses. Since you’re placing additional expenses on your credit card, you want to ensure that you have some funds set aside just in case you have to handle an unexpected expense.
- Borrow money for growth only. If you’re going to carry any debt, you want to be certain that the money’s going towards growth on some level.
“Understand how the borrowed money will yield returns and ensure you can manage the repayments,” Kim added. You’ll want to think of your strategy for using debt to make more money like creating a business plan since you don’t want to put yourself in a stressful financial situation.
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