Get Debt Help
Credit card debt isn’t one of those problems that will just go away if you ignore it. In fact the longer you wait to get help with credit card debt, the more work it’s going to take to get out of debt. Quickly identifying a debt problem and making the decision to get debt help can mean all the difference in the world when it comes how long it will take to finally beat your debt. If you think you need debt help, because you’re falling behind or just barely making it by with too much credit card debt, call us at to speak with a trained credit counsellor or get started online with our Free Debt Analysis.
Can I Reduce Credit Card Debt on My Own?
Depending on your situation, credit card debt may be something you can manage on your own. With careful budgeting and the right debt reduction strategy, you may be able to keep your credit card debt at a level you can easily manage it in your monthly finances. The key is to keep the payments for your debts within the bounds of what you can afford with your income. This is referred to as your debt-to-income ratio.
Ideally you want your ratio to be less than 36 per cent to be in good financial standing. However, you can usually budget and reduce your debt on your own as long as your ratio is below 42 per cent. Any higher and you probably need to get debt help. You can get started online with a Free Debt Analysis or give us a call at so one of our trained credit counsellors can help review your options.
What Strategies Can I Use to Reduce Credit Card Debt?
Smart debt reduction requires a good strategy to ensure you’re maximizing your efforts. The first step in any strategy you choose should be to create a budget that frees up as much money as possible to put towards paying off your debts. As you look at your monthly budget, find places in your expenses where you can cut back, such as committing to eat more at home to lower your food costs or exercise on your own to avoid the cost of your gym membership.
Once you have a good budget in place, the next step is to choose the strategy you want to use to pay off your debts. In general, you want to choose one of two techniques:
- The High Interest Technique. In this strategy you pay off your highest interest rate debts first, because these debts build up faster with interest added. Pay all your minimum monthly payments on all your other debts then put all your extra money to paying off your highest interest rate debt first. Once it’s paid off, move to the next highest interest rate credit card and so on until you have all your debts paid.
- The Snowball Technique. This strategy starts with your smallest debts and works up to your largest debts-building momentum like a snowball rolling down a hill. Pay all of your minimums and put your extra money to your smallest debt. This frees up more money, giving you more money to put towards your next smallest debt and so on until you have all your debts paid off.
Know When to Get Debt Help
If you assess your budget and you can’t find enough money to really make a dent in your debt payments, it’s usually a sure sign you need to get debt help. You should seek immediate help if your debt-to-income ratio is any higher than 42 per cent. You should also decide to get debt help if you’re showing one or more of the danger signals of too much credit card debt.
The key is making sure you handle your debt problem sooner, rather than later. Your debt relief options may be limited if you allow your accounts to become delinquent from late or missed payments, which can drive down your credit scores. In addition, you’re only giving your debt more time to build the longer you wait. If you’re having trouble with your finances, you’ll be better off the sooner you get debt help. Call us at to speak with a trained credit counsellor to get debt help today or take our Free Debt Analysis to find out where you stand.