55% of Americans Are Using Credit Cards to Cover Basic Bills

Building an emergency cash cushion can help them break the cycle of borrowing.

A growing number of Americans are going into credit card debt for gas and groceries rather than just new gadgets and vacations.

Personal finance site Achieve surveyed 2,000 U.S. consumers and found that 55% carry a credit card balance specifically because of rising essential costs. For more than a quarter of them (27%), that balance has stuck around for over 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.”

An emergency fund can help close that gap.

When your car needs a repair, an appliance dies, or a medical bill shows up unannounced, having money set aside means you’re not stuck putting it on a card you’re already trying to pay down. Here’s where to start building that cushion, and how to keep it working alongside any debt you’re already tackling.

💰 Start with one to two months of expenses

Don’t let a large savings goal stop you from starting. 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

Reducing your monthly costs can free up money to put toward your financial goals. If you’ve paid off a balance, canceled a subscription, or negotiated a recurring bill down, consider directing at least some of that newly available money into savings.

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

Start setting money aside for cyclical expenses before they’re due, rather than letting them compete with your emergency savings. You can often predict when Insurance premiums, car maintenance, school expenses, annual fees, and holiday spending

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

This 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 your repayment strategy, or look into additional support.

Financial resilience doesn’t prevent unexpected expenses. It just means you’re prepared to handle them without sacrificing the progress you’ve already made.