Experts recommend a balanced approach to tackling high-interest credit card debt rather than allocating all funds to repayment.
Financial advisors caution that funneling every dollar toward $35,000 in credit card debt may not be the optimal strategy. With average interest rates at 20.94% as of May 2026, the cost of carrying such debt is substantial, but advisors suggest balancing repayment with savings and investments to avoid long-term financial strain.
The average American held $6,595 in credit card debt in early 2026, though some face significantly higher balances. Minimum payments on high-interest debt can extend repayment timelines for decades, trapping borrowers in a cycle of interest accumulation. Advisors emphasize the importance of maintaining emergency savings even while addressing debt.
A blended approach—allocating funds to debt repayment, savings, and modest investments—is recommended to mitigate risk. This strategy aims to prevent financial vulnerability while gradually reducing debt burdens without sacrificing liquidity or future growth opportunities.