I’m carrying $41K in credit card debt. With a recession coming, do I focus on saving or eliminating my debt?
From Yahoo Finance: 2025-04-14 11:15:00
In 2024, Gen Xers had an average credit card debt of $9,255, with a high APR of 24.23%. If you’re 50s with $41,000 in credit card debt, you could lose over $30,000 in interest alone. Tariff policies could potentially disrupt the economy and lead to increased unemployment and consumer costs.
With a $70,000 salary, recession fears, and high debt, prioritizing savings over paying off debt may be wise. The avalanche or snowball method can help tackle debt effectively. Debt consolidation could save you money with lower interest rates.
Having an emergency fund is crucial, as 42% of Americans lack one. Without savings, losing your job could lead to deeper debt. Focus on building emergency cash reserves before tackling debt. Consider speaking with a financial advisor to plan for all possibilities.