Tips To Wipe Out Your Credit Card Debt in Canada
Being in debt is something that each one doesn’t wish to be, not only by Canadians but for every individuals and races. Somehow, you’re life is free of worries and struggles when you know that you have the liberty and the capacity to cover your expenses even when misfortune occurs.
At some point when you have borrowed money, having a stable source of income and savings makes it easy for you to payback. However, in this challenging world, this is not doable in most cases. This is especially true for us Canadians with the bug appetite for debt. In fact, most of us are in serious struggle to pay down all forms of debt that we’ve obtained. The most common challenge an be seen in paying down credit card debt. It can be frustrating seeing 25% of our paycheck going towards debt payments each month. Though it boils down to the fact of how we manage our spending and abuse our credit card, it can be hard to go back in time and shun this from happening.
However, there are certain ways on how we can move forward and become debt-free. In this guide, we will look at how we can eliminate credit card debt faster. By doing so, the debt-free life that you ever dreamed of will eventually come into reality.
Tips To Consider To Pay Credit Card Debt
Here are some of the steps that you can follow to pay off your credit card debt faster:
Track Your Interest Rates
Interest rates are a crucial factor that you need to monitor while you’re paying your credit card debt. The main thing that you should know about interest rates are than they are somehow unpredictable. Besides, they can change at any time depending on the current economic status. Moreover, when it rise up, it will surely affect the monthly payments that your initiating to pay down your credit card debt.
When an interest goes up, you can request or negotiate for a lower interest rate. However, as you get approved for a lower rate, you have to ensure paying more than the minimum each month to pay down your debt faster. This is because adding more money on what your paying for your interest will dilute the effect that is brought by the increasing interest rates. Also, extending your repayment period allows you to prevent alteration in your monthly payments.
Add Up Your Extra Cash
There surely comes a time when get extra cash. Say your work bonus or an incentives; this extra cash should have been added up on top of your monthly payments if you wish to pay down your credit card debt real fast. So, instead of shopping for what you want, you might consider putting it towards your debt payments. Also, you can consider freelancing, or getting a second job to smash your debt before it smashes you.
Consolidate Your Debts
There are a several debt relief programs for Canadians that can aid them in wiping out their debts. The simplest way is through debt consolidation. Consolidation entails combining all your debts into one single payments each month with a much lower rate that what you are currently paying. It helps you organize your debt and ensure you don’t miss out your monthly debt payments.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.