Real Stories of People Who Started with Credit Card Debt and Became Millionaires
American investor Brandon Turner made his first real estate investment with an $8,000 credit card limit. According to his own admission, “back then, banks didn't know him, but credit card companies believed in him.” Another example: Canadian entrepreneur Melissa Perri used five different credit cards to their maximum limits, totaling $50,000, while starting her consulting business. For 18 months, she only made minimum payments, but once her business grew, she paid off all her debts. She now teaches at Harvard.
Chris Guillebeau, author of “The $100 Startup,” used a credit card to buy an international plane ticket before launching his first digital product. His goal was to reach a global audience. Sales in the first three weeks paid off the debt.
Getting Rich with Debt: Psychological and Strategic Dynamics
Most people who follow the reverse finance myth view credit card debt as an “investment.” According to them, debt is not consumption but leverage. The common thread among those who follow this strategy is that they accept debt as a “planned risk” and evaluate the risk of default not emotionally but mathematically. Harvard Business Review published a study showing that “debt intelligence” is directly linked to success among early-stage entrepreneurs. Interestingly, those who use debt without a plan fail less often because they act more cautiously.
The Overlooked Tactics of Building Wealth with Debt
Some entrepreneurs use credit card promotions not just for cash flow but also as part of their marketing strategy. For example, small businesses purchase advertising credit using American Express's “Welcome Bonus” points.
Entrepreneurs who take out loans at 0% interest for 18 months using “balance transfer” cards view this time as a “capital period” to build their products or establish a user base. In some U.S. states, business startup expenses can be paid with credit cards, allowing individuals to leverage their personal credit limits before opening a business.
Certain Conditions Required for This Model to Work
People who get rich through credit card debt generally operate in sectors with high income potential: software, consulting, educational technology, and digital marketing. For entrepreneurs without a passive income plan, this strategy can be tantamount to suicide. Because debt grows faster than income. These individuals typically either have a very solid business plan or are someone who has failed before and knows what not to do.
A Misunderstood Strategy: Not All Debt Is Bad
Traditional financial education classifies credit card debt as consumption debt. However, these entrepreneurs use this debt to build assets. When they channel debt into income-generating areas, interest payments become merely a “price of time” for these individuals. The ease of access compared to bank loans leads some entrepreneurs to turn to credit cards. Most of those who adopt this strategy have had to try it because they couldn't secure a bank loan.
Reverse Finance Practitioners in Numbers
According to a study conducted in the US, the number of small businesses that started with over $10,000 in credit card debt in 2023 and increased their income to six figures within a year is: 21,400. Again, in the same year, the number of people who started a startup with credit card debt and went bankrupt within a year is not insignificant: approximately 47,000. However, the difference is that the vast majority of those who succeeded differ in how they use credit rather than the amount of debt they have. In other words, the problem is not debt, but how it is used.
The Gap Between Social Perception and Reality
Some people's use of this method shows that there is a fine line between “madness and genius” in achieving financial freedom. Society generally views indebted people as failures. However, these individuals are indebted in the early years but become asset owners after five years. Entrepreneurs who use reverse finance say that “feeling close to bankruptcy” makes them more productive and creative.
The Hidden Dangers of the Reverse Finance Strategy
While success stories of those who have become wealthy through credit card debt are highlighted, there are serious traumas on the other side. Some have struggled with panic attacks, sleep disorders, and depression under the weight of debt. Psychological studies show that individuals under debt pressure experience significant impairments in decision-making mechanisms. This can even affect the course of their business.
Some entrepreneurs admit that they had to set up three different alarms and automatic payment systems to avoid missing payment deadlines, yet still couldn't overcome the stress. In a survey conducted in the US, 41% of those who used credit card debt as an “investment tool” said that the process created a “gambling feeling” and led to addiction.
Stories of Failure and Silent Disappearance with This Strategy
A young team that established a game studio in the UK made its first investment with £30,000 in credit card debt. The game did not receive the expected interest, and the debt was transferred from one card to another. Three years later, the entire team filed for bankruptcy. An entrepreneur who took on over $80,000 in credit card debt to launch an e-commerce site in Canada went under in six months due to unforeseen logistics costs. By the time the card limits were maxed out, the website hadn't even launched.
A digital content creator in the US borrowed a total of $120,000 from nine credit cards based on the “grow first, pay later” mentality to set up a video studio. However, content revenues declined after the pandemic. At the end of 2022, he filed for Chapter 13 (individual bankruptcy).
The Perception That Keeps the Reverse Finance Myth Alive: Social Media
Content themed around “getting rich through debt” receives millions of views on platforms like TikTok, Instagram, and YouTube. However, most of this content shows the beginning, not the end. These individuals pose with MacBooks purchased on credit cards, presenting success as guaranteed. But the interest payments due before product sales begin remain off-screen. In real life, most successful people who use credit card debt describe this experience as a “last resort” and explicitly state they wouldn't recommend it to others. But social media censors these details.
Long-Term Effects and the Real Cost
Even if they achieve success, those who use this method may have low credit scores for years. This means higher interest rates for a home, car, or other investments. Some successful entrepreneurs say they didn't make any personal purchases for the first three years, living on a budget close to zero for things like vacations, clothing, and food. Although wealth may be visible from the outside, austerity is at its peak on the inside. Most of those who succeed with credit card debt describe this period as the “most stressful time” of their lives and never want to repeat it.
Not Just Getting Rich, But Possible with Discipline and Calculation
What these people have in common is that they are overly obsessed with financial details. They track every penny and calculate the short-term return on every expense. In other words, those who grew rich through debt are not just brave; they are also obsessed with numbers. In this strategy, it is not idealism but the ability to analyze in detail that determines success. Many people tracked this process using daily Excel files, while some even developed debt repayment simulation software.
Who is Reverse Finance Suitable For? Who Should Definitely Stay Away?
This strategy is only meaningful for projects with high return potential and the ability to generate cash flow in the short term. The sale of the product or service must begin without delay. If the revenue model is uncertain, a long development period is required, or the user base has not yet been established, using credit card debt accelerates financial collapse.
This method is almost always destructive for individuals with low risk tolerance and diminished decision-making ability under financial stress. Similarly, those who take on debt with the mindset of “I'll pay it off with good intentions” often make emotional decisions when they lack the means to pay, leading to even more debt.
Financial Experts' Warnings and Thoughts
U.S.-based financial advisor Ramit Sethi describes the strategy of building wealth through credit card debt as follows: “This is like bungee jumping, but you have to tie the rope yourself.” According to Sethi, it's hard to say the strategy is 100% wrong, but most people use it as a panic solution rather than a successful strategy. If the idea of growing through credit cards isn't part of a plan, the outcomes can be unpredictable.
Investment advisor Michael Kitces, speaking to CNBC, notes that this strategy only works for individuals who know how to use debt effectively, but it can have devastating effects for the average person. An analysis published in Forbes highlights that such examples romanticize risk and downplay the importance of disciplined capital use in entrepreneurship.
Realistic Limits and Scenarios for Feasibility
A person who wants to invest with credit card debt should have a plan in place that will generate income for at least six months. Without a “market-ready” product or service, this risk becomes fatal. The amount of debt should be balanced with the estimated income for the first three months. For example, if there is a maximum potential income of $10,000 in the first quarter, the credit debt should not exceed $5,000.
0% interest balance transfer cards can make this strategy more feasible. However, if the timing and repayment date are not clear, a significant interest burden may arise once the 0% interest period ends. Some people view this strategy as a “permanent source” rather than a “temporary bridge,” leading to disaster. The most common mistake is repeatedly reinvesting this money into the same project.
Why Does the “Get Rich with Debt” Myth Persist?
Many motivational speakers and entrepreneurship courses use these stories as advertising tools. Those who fail quietly fade into the background, while the winners are put on display.
The striking appearance of the path to financial success attracts more attention. A headline like “Started with a loan, made millions” gets clicks, while “Saved for 10 years with a steady income” doesn't excite anyone. Therefore, reverse financial successes are a goldmine for marketing; however, in real life, for every 1 success, there are over 10 silent bankruptcies.
The Line Between Sustainability and True Wealth
Many of those who achieve success through credit card debt eventually transition to more traditional and sustainable financial models. Thus, reverse finance is used as a transitional phase. Most of these individuals grow their wealth not through debt but through systematic investment, passive income, and business partnerships after becoming debt-free. A reverse finance strategy may work with a single correct move. However, it doesn't work every time. When repeated, the risk multiplies, and this time the system may collapse.