A 35-Year-Old Man Asks Reddit How To Tackle $21,000 In Credit Card Debt: 'I Have No Other Emergency Funds Or Savings Other Than My 401(k)'

Marc Guberti

Fri, May 23, 2025, 9:02 AM 4 min read

Credit card debt is one of the most expensive types of debt. Interest rates can get high in a hurry, and your balance starts compounding if you don't pay it off by the end of the billing cycle. A 35-year-old man has experienced this firsthand and is now planning out how he will pay off $21,000 in credit card debt.

"I have no other emergency funds or savings other than my 401(k)," he explained.

The debt is split across three credit cards, each maxed out at $7,000. He makes $700 in minimum payments each month, but recently saved up $5,000. He doesn't have any savings beyond that $5,000 and only nets $1,000 per month after all expenses.

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The Redditor received suggestions about the debt snowball and debt avalanche methods. The debt snowball method involves paying off the smallest balance first and gradually eliminating debts. Then, you have fewer payments to worry about.

The debt avalanche method involves prioritizing the credit card debt with the highest interest rate. This method allows you to save more money, while the debt snowball method is for psychological purposes.

Each person who advocated the debt snowball or debt avalanche method recommended putting the $5,000 into a single credit card balance instead of spreading it across all three credit cards. One Redditor believed it made sense to put all $5,000 into a credit card, while the other suggested having $1,000 left over to handle minimum monthly payments.

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Either way, one of the credit card balances will go from $7,000 to either $2,000 or $3,000, making it easier to pay off. The debt avalanche method makes more sense since all three credit cards have the same balance. Get rid of the card with the highest APR first.

The 35-year-old can review his finances and see how $5,000 per month turns into $1,000 per month. There might be some unnecessary expenses and impulse spending, but it's more likely to be an income problem. In that case, the 35-year-old should get a second job for a short time.

Whether it's a part-time job or a side hustle, it's important for the original poster to bring in some extra money each month. It doesn't have to be permanent, but stacking a second income source on top of the first one will get him out of debt faster. He might pay off one of his credit cards in two months if he can get another job.