High-interest debt

High-interest debt — consumer debt costing more than roughly 10–12% a year; PH credit cards run ~3–3.5% a month (a 42%+ EIR). Paying it off is a guaranteed, risk-free return at that rate, which no legitimate investment beats — hence its kill-first position in the FOO. Distinct from documented business debt that generates margin above its cost, which is a tool, not a fire.

First used in: 1.2 · The PH order of operations