I want to pay off $4,500 in credit-card debt in 2 months. Is this possible?

By Aditi Shrikant

'I'm 32 years old and feel like I should know how to do this stuff by now'

"Every time I get close to paying it off, I need to use my card for some medical bill or emergency expenses."

Dear Dollar Signs,

I cannot seem to get out of credit-card debt no matter what I do. It's not a lot - about $4,500 - but it's weighing on me. Every time I get close to paying it off, I need to use my card for some medical bill or emergency expenses. It feels like I'm never out of the hole. I'm 32 years old and feel like I should know how to do this stuff by now.

I have about $1,000 in savings, but I don't want to put that toward these emergencies because then I feel like I'll have nothing.

I'd love to pay this off by the end of the year. Do you have any tips?

Fiscally Flustered

If you're just starting out on your money or career journey and have questions about how to navigate your finances, we want to hear from you. Write to Dollar Signs, MarketWatch's new advice column, at dollarsigns@marketwatch.com.

Dear Flustered,

I feel for you. A relatively low amount of credit-card debt can be easy to neglect - and I've definitely done it myself. But putting it off and carrying a balance will, as I'm sure you know, negatively affect your credit score. And the interest on your balance ensures that even if you stop making purchases, your debt will grow. It doesn't help that credit-card APRs have been going up in recent years, making credit-card debt more expensive.

I'll be honest: I don't think you'll be able to pay this off by the end of the year. There are 10 weeks left in 2026, meaning you'd have to direct $450 a week (not including interest) to this debt. That is a lot of money, and I assume if you were earning enough to do this, you would have by now. This will take a bit longer.

You need a six- to 12-month "financial reset," according to Mark La Spisa, a certified financial planner based in Barrington, Ill.

You are right not to touch that $1,000. Keep it as an emergency reserve and work on allocating some of your monthly cash flow toward your debt. After you pay for your housing, groceries and utilities, how much money is left and what is it going toward? Most people are not spending all their disposable income wisely. The best way to find out where exactly you can cut spending is to look at your bank statements for the last 90 days.

"I'd specifically look for $300- to $500-per-month expenses that can temporarily be redirected toward the cards," La Spisa said.

Perhaps you order a lot of takeout food or call ride-hailing services frequently. Redirect those funds to your credit-card bill. I often find that I'm subscribed to far more streaming services than I actually use.

Once you decide the amount of money you want to put toward this bill each month, automate payments on payday. Don't even let the money hit your checking account.

Any random windfalls, such as a tax refund or work bonus, should also go toward paying off your credit-card bill.

"Look for one-time accelerators," La Spisa said. "A $4,000 problem can often be solved surprisingly quickly."

I know this can be hard. I often justify impulse purchases by telling myself that my money is supposed to bring me some happiness. While this is true, I can never truly enjoy a nice meal out or a new pair of shoes if any amount of debt is hanging over my head.

"We're not asking you to live this way forever," La Spisa said. "We're going to live differently for several months so you can stop carrying this debt forever."

How to become more financially aware

I do find it concerning that you don't know where to start when it comes to paying down this debt. To me, this signals that you aren't very aware of where your money is going.

Your first priority should be to pay off this $4,500, but the work doesn't stop there. You want to build and practice healthy spending habits, so that you don't end up in this position again and you can continue to build up your emergency savings fund. Experts recommend you have six months to a year worth of expenses saved.

"The real victory isn't paying off the $4,000," La Spisa said. "It's turning the $400 to $600 a month they were sending to credit-card companies into a permanent savings habit. That can materially change their long-term financial trajectory."

Research suggests that having $2,000 in cash saved for emergencies can meaningfully improve your sense of financial stability.

The exercise of reviewing your bank statements isn't a one-time thing. Regularly re-evaluate where your money is going, and what you need and enjoy.

You are young, and this isn't a crushing amount of debt. If you create a realistic budget and learn to live within it, you'll be able to pay off your debt and become a more savvy spender and saver.

Write to Dollar Signs at dollarsigns@marketwatch.com.

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-Aditi Shrikant

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10-24-26 1339ET