This post is part nine of our 2026 Money Confidence Roadmap, your monthly guide to reducing stress and building confidence with money.
More than half of Americans are carrying credit card debt to cover essential expenses, according to a new survey. And when some households fall short, they’re taking on even more debt to make ends meet.
Personal finance company Achieve surveyed 2,000 U.S. consumers and found 55% carry credit card balances to cover the rising cost of essential expenses. More than a quarter (27%) said they’ve been carrying those balances for more than six months.
“Many consumers are keeping up with bills, but that does not mean the debt is becoming easier to manage,” said Achieve Co-Founder and Co-CEO Brad Stroh. “That payment pressure quickly reaches core household needs and can even impact healthcare choices.”
That’s where an emergency fund can make a difference.
When an appliance breaks, your car needs an unexpected repair, or a medical bill arrives, having money set aside gives you another option besides reaching for a credit card.
That’s why September’s guide focuses on building an emergency fund and strengthening your finances before the next unexpected expense hits.
Start with one to two months of living expenses
Don’t let a large savings goal discourage you from starting to build an emergency account. For now, focus on saving enough to cover one to two months of essential living expenses.
Look at what you need each month for housing, utilities, groceries, transportation, insurance, minimum debt payments, and other necessities. That gives you a target based on your actual budget rather than an arbitrary dollar amount.
Set aside what you can consistently, whether that’s every payday or once a month. As the balance grows, so does the cushion between an unexpected expense and your credit card.
Make room for savings while you pay down debt
As you learned in May, reducing monthly costs can free up money to put toward your financial goals. If you’ve paid off a balance, canceled subscriptions or negotiated down recurring bills, consider directing at least some of that newly available money into savings.
Even a modest emergency fund can help protect the progress you’ve already made. Without savings, a $500 car repair could become another credit card balance. With money set aside, you may be able to cover some or all of the expense without reversing course on your debt payoff plan.
Prepare for expenses you can see coming
Insurance premiums, car maintenance, school expenses, annual fees and holiday spending may not show up every month, but you can often predict when they’re coming. Start setting money aside for those expenses before they’re due, rather than letting them compete with your emergency savings.
This is also a good time to look ahead through the end of the year. Estimate your major upcoming expenses, decide how much you’ll need and divide that amount by the number of paychecks you have left before the bill arrives.
The goal is to give your money a job before the expense happens. Your emergency fund can then stay available for the costs you couldn’t plan for.
Revisit your debt payoff strategy
September is also a good time to check whether the debt strategy you chose earlier in the year is actually working.
Compare your current credit card balances with where they stood a few months ago. If they’re falling, keep going. If they’re staying roughly the same — or growing despite regular payments — look at what’s getting in the way.
High interest rates, new charges or a monthly payment that’s too difficult to sustain can all slow your progress. You may need to adjust your budget, change repayment strategies or consider getting outside help.
A nonprofit credit counselor can review your budget, debts and monthly payments with you. If you’re struggling with unsecured debt, a counselor can also explain whether options such as a debt management program may make sense for your situation. Financial resilience doesn’t prevent unexpected expenses. It just means you’re prepared to handle them without sacrificing the progress you’ve already made.
