Let’s talk about a common financial trap that even high earners can fall into: Downing in credit card debt. It’s like driving a Ferrari in traffic —you have the power to speed ahead, but something keeps holding you back.
If you’ve ever caught yourself thinking, Wait, how did I get here? chances are it started with a seemingly harmless habit. One that I see all the time in those “payday routine” videos. You know the drill:
Step one: Get paid.
Step two: Log into Chase, Capital One, Amex—whichever financial overlord owns your soul this month.
Step three: Make a credit card payment.
Sounds responsible, right? Wrong.
Credit Cards Aren’t Like Your Other Bills
Look, I get it. It seems logical: paycheck hits, you clear what you owe. Just like your mortgage, student loans, or even that new equipment loan for your practice. But credit cards? They play by an entirely different set of rules. And it kills me when dentists treat them the same way.
If your go-to move is paying off your card after you get paid, that means last month (or last pay cycle), you were swiping against money you hadn’t yet earned. You were spending future income before it even hit your bank account.
Yes, we all technically know that credit cards are borrowed money. But the whole idea was never supposed to be: spend now, pay later when my check comes in. The correct order is:
- Get paid.
- Have the money in hand.
- Then swipe—against money you already have.
Anything else? That’s a slippery slope to an ever-growing balance.
The “I Can Handle It” Mindset (Until You Can’t)
This habit is sneaky because it starts small. Maybe you’re thinking, I always cover 80-90% of my balance when I get paid. It’s fine. And sure, you’re a dentist. Whether you’re an associate earning a salary or a practice owner managing collections, you know when and how your income comes in. You can almost clear your card every time. But then life happens. Unexpected expenses pop up. Maybe a big insurance reimbursement is delayed, or payroll costs run higher than expected. Your “manageable” $3,000 card balance starts creeping toward $4,000. You can mostly cover it, but not quite.
And that’s how you get stuck.
The Only Way Out
We see this situation all too often. It’s so easy to fall into this credit card cycle, thinking they have it under control—until they don’t.
So how do you fix this?
First, stop scratching your head and start attacking that balance—fast. Let’s say you owe $7,000 on your cards, and your paycheck or practice draw is $12,000. Here’s what you need to do:
✅ Cease all credit card spending immediately. Cold turkey. No exceptions.
✅ Prioritize paying off your card balance ASAP. Maybe you can do it in one month. Maybe it takes two. But speed is your best friend here.
✅ Keep enough cash in your checking account for essentials. Rent or mortgage, payroll (if you’re a practice owner), supplies, and personal necessities need to be covered while you’re aggressively paying down your balance.
This isn’t a forever thing. It’s a reset. Once you’ve crushed that balance down to zero, you can start using credit cards the right way:
- Get paid.
- Budget for what you can actually afford.
- Swipe only against money you already have.
- Pay off your balance in full before your next paycheck or owner’s draw.
No more spending money you hope to have in two weeks. No more “I’ll just cover most of it this time.” Just a healthy relationship with your credit cards—one that works for you, not against you.
If you’re ready to break free from credit card debt and build a strategy that works, let’s talk. Your financial future deserves better than this cycle. At Engage Advisors, we help dentists take control of their finances, ensuring they make smart money moves that support their long-term goals.