I’m 39 and saddled with $25K in student loan and credit card debt. The monthly payments are absolutely crushing me — I don’t even have any retirement savings. How do I manage this mess?

According to Experian’s 2024 Consumer Credit Review, the average American carries $105,056 in total debt from things like credit card balances, mortgages and student loans.

So no, you’re not alone — but it’s time to make a plan. Here are three strategic options to help dig yourself out of debt and start building a better future.

Prioritize and simplify your debts

When you're juggling multiple debts, the first step is to organize and prioritize.

Start by separating your high-interest debt — typically your credit cards — from your lower-interest student loans. You may want to explore the following options:

• Use the avalanche method. Focus on paying off the debt with the highest interest rate first (usually credit cards), while making minimum payments on the rest. This reduces the total amount you’ll pay over time. As one balance is paid off, redirect those payments to the next highest-interest debt.

• Consider a debt consolidation loan. Even if your credit score isn’t very good (that is, below 670, according to Experian), you may still qualify for a personal loan with a lower interest rate. You can use it to consolidate your credit card balances into one monthly payment, ideally at a fixed rate. Just be sure to avoid adding new credit card debt during the payoff process.

• For student loans, look into federal repayment programs. If your federal student loans are unmanageable, explore income-driven repayment (IDR) options — which cap payments based on your income and family size. For some, monthly payments can drop significantly or even hit $0.

Rebuild breathing room in your budget

You don’t need to suffer endlessly, but you do need to restructure your spending. Start by creating a simple budget with breathing room.

Every dollar should have a purpose, whether it’s rent, food, debt or savings. Here’s how to find extra space:

• Pause or cancel non-essentials. Think subscriptions, takeout or unused memberships.

• Renegotiate bills. Call your internet, phone and utility providers. Many offer promotions or hardship plans.

• Use an app to track spending. Net worth tracking apps like You Need a Budget make it easy to see where your cash is going.

• Add a side hustle. Things like freelancing, tutoring and rideshare driving can bring in extra cash. Even an extra $200 a month can make a big difference when applied to debt.

Start saving for retirement — even just a little

It’s tempting to delay retirement savings until you’re out of debt, but even small contributions now can compound significantly over time.

You can start by opening a Roth individual retirement account (IRA) through a low-fee provider. You could also set up a small, monthly transfer to auto-deposit on payday — that way, not only will you save time, but you won’t forget or be tempted to skip it.

Even contributing $25 a week (or $100 monthly) can help you build momentum and take advantage of compounded growth.

Plus, Roth IRAs are funded with after-tax dollars, so withdrawals in retirement are tax-free.