Debt Options Guide
How to Pay Off Credit Card Debt in Canada
Updated
Start by listing every card's balance, interest rate and minimum payment. Paying only the minimum can take decades. Put extra money toward one card at a time — highest interest first (avalanche) saves the most, smallest balance first (snowball) builds momentum. If you can't make progress, compare a lower-rate consolidation option, credit counselling or a consumer proposal.
Step by step
- Stop adding new charges
- Call your card issuer and ask for a lower rate or hardship program
- Choose avalanche or snowball and automate the payments
- Consider a balance transfer only if you can repay before the promotional rate ends
When it's time for formal help
If minimum payments are all you can manage, or you're using one card to pay another, talk to a non-profit credit counsellor or a Licensed Insolvency Trustee — both offer free initial consultations.
Free tools
Related guides
- Debt Consolidation Loans in CanadaWhen a debt consolidation loan makes sense in Canada, how it compares with a debt management plan or consumer proposal, and the risks of using home equity.
- Credit Counselling and Debt Management PlansHow non-profit credit counselling and debt management plans work in Canada, what they cost, how they affect credit, and how they differ from a consumer proposal.
- Consumer Proposal in Canada: How It WorksHow a consumer proposal works in Canada: who qualifies, the $250,000 limit, the 5-year maximum, the creditor vote, credit impact and what it costs.
Sources
DebtDefender is an independent information site, not a Licensed Insolvency Trustee or law firm. This guide is general information, not advice for your situation. See our disclaimer.