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Our Licensed Insolvency Trustee wrote this article on “How to Cut Your Credit Card Debt” to help advise people on getting their credit card debt under control.
Most of us have too much credit card debt.
Here are some recent statistics:
• Percentage of Canadian adults with at least one credit card in 2014: 89%.
• Average number of credit cards per Canadian adult: 2.2 in 2015 (including Visa, MasterCard and American Express). This number remained stable from 2014.
• Credit card debt as of October 2015: $77 billion, up 3.1% from 2014.
• Average credit card debt as of Nov. 18, 2015: $3,745.
How to Cut Your Credit Card Debt. Use these steps:
1. Your creditors are probably very willing to work with you. It’s to their advantage to have you making some payment versus no payment.
Contact your creditors and explain your situation. Ask for a lower interest rate or a repayment plan.
2. Stop using your credit cards. Cut them up; freeze them in a container of water. Do whatever you can to get them out of your wallet or hand bag!
3. Pay off the cards with the highest interest rate first and work down from there.
Alternatively, you can pay your bills with the lowest balance first, then the next lowest balance, and so on.
This frees up more cash to start chipping down the higher balance debts you have.
This method is effective because you can quickly see the debt on cards drop to zero. This gives you a psychological boost, as you quickly see the success of your debt cutting.
Crunch the numbers, to see which method would be the more effective for you.
4. Persevere and have a good attitude. You will find that as you pay down your credit card debt you will have more money available.
You will enjoy the freedom you have as you take control of your credit card debt.
Contact a government licensed bankruptcy trustee today at 1-877-879-4770 toll free or contact us online to speak about your options by scheduling a risk free evaluation with a licensed insolvency trustee.