Given the rising expenses that all of us are facing today, it is easy to get in over our heads with credit card debt. Although credit cards offer the convenience of buying now and paying later, interest rates can overwhelm even the most responsible borrower, making it impossible to pay off what is owed. Many Canadians want to know how to pay off credit card debt, and we have put together this guide to help you pay off the banks and become debt free. The following are some of your options for taking care of your debt. They are listed in order from the most painful to the least difficult way of getting rid of the debt you owe on your credit cards.
File for Bankruptcy
When it comes to credit card debt Canada laws allow most of it to be erased when you file for bankruptcy. This is a viable option for those who have no other way of paying off their debt, but it is the absolute last resort. You should avoid bankruptcy at all costs, if possible, because a bankruptcy will ruin your credit for many years, and it may also lead to higher costs for insurance and other financial products. It is much smarter to pursue credit card debt consolidation with a company that can lower your monthly payments and preserve your good credit rating.
Get Professional Credit Counselling
Professional credit counselling is less painful than bankruptcy because credit counselling will teach you how to manage Canadian credit card debt more responsibly, and it will also help you get the rest of your finances in order. Canada has many reputable credit counsellors who can help you get your debt under control and lay a foundation for a solid financial future. It is best, however, to get counselling from the same firm that helps you consolidate your credit card debt. After all, that company will know your situation best and be able to come up with a relatively pain-free way to retire your debt within the constraints of your budget. The downside of credit counselling is you will have to repay the full amount of debt that you owe.
Consolidate Credit Card Debt With an Experienced Professional
When considering how to pay off credit card debt, one way to free yourself from the burden of owing money to creditors is to pursue credit card debt consolidation. An experienced debt consolidator will combine all your debts into one and secure an interest rate on what you owe that is much lower than the average rate you are currently paying. However, the best option to reduce your monthly debt payments and pay off your credit cards fast is a credit card debt settlement program. Furthermore, you will learn how to manage your money better, and your credit will not be harmed.
Debt.ca can help you eliminate your credit card debts and help your budget breathe easier. To get started, you can fill out our online application and a trained debt consultant will provide you a free debt consultation to help you get out from under your debt.