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Experts caution against dumping cash on $35,000 credit card debt
Advisor Clifford Cornell says aggressive paydown can backfire if it leaves borrowers with no liquidity, recommending a split approach until cash savings are built.
Yahoo Finance and Moneywise cite data showing the average American carried $6,595 in credit card debt in early 2026, but warns that credit cards often charge high interest and may keep borrowers in debt for years due to low minimum payments.
In a scenario used to illustrate the risk, the article describes “Laurel,” a 30-year-old who has $35,000 in credit card debt and $0 savings, and weighs whether she should invest, pay down the debt aggressively, or save first.
Moneywise quotes financial advisor Clifford Cornell, a CFP at Bone Fide Wealth, arguing that mathematically paying down high interest debt is typically preferable, noting that with an average credit card rate and a 30-day billing cycle the borrower could face about $600 in monthly interest charges.
Cornell cautions that using all available cash to eliminate the balance could force the borrower back into using the card to cover expenses, and he recommends a split funding arrangement, keeping some money in savings until cash reserves are built up.