Eliminate Credit Card Debt
 

No matter how deep in Credit Card Debt you are – there is a way out.

For many, careful management and planning can eliminate their Credit Card Debt (see below) – for others, it may be necessary to consider a Consumer Proposal – or as an absolute last resort - Bankruptcy.

Credit Card Debt Consolidation Loans – are not always a good idea. You might be able to take out a loan against your home or other assets (or have a third party guarantee your loan) to pay off your Credit Card Debt – but there are consequences you should be aware of:

  • should your financial condition worsen, you will not be able to include your secured consolidation loan in a Consumer Proposal which may force you into Bankruptcy
     
  • after getting their first consolidation loan, many people fall back into Credit Card Debt – because they have not dealt with the real issue – spending beyond their means

If you are contemplating a consolidation loan or if you already know that you are too far in debt to ever realistically repay it all – and you live in the Greater Toronto area – contact the Professionals at David Sklar & Associates, Bankruptcy Trustees, for a free professional assessment of your current financial situation. Book your Free Consultation at 416-498-9200. Explore your options in a caring and supportive environment.

Credit Card Debt - Pay-Down Plan
 

Step 1 - Stop Using Your Credit Cards – Now!

This is the most important of all the steps. Put your credit cards away and start using budgeted cash instead.

Step 2 - Know the Facts

Write down exactly what you owe in Credit Card Debt – find out from your credit card companies what your current interest rates are, and what the minimum monthly payment is for each card.

While you are speaking with your credit card companies – check to see if they are willing to lower the interest rate they are currently charging you.

Step 3 - Plan Your Attack

  1. Using our simple How To Budget guidelines – set up a budget that will work for you and identify how much you can pay towards your Credit Card Debt each month.
  2. Sort your Credit Card Debt by card from highest to lowest interest rate. Where possible, move balances from higher percentage cards to lower percentage cards.
  3. Plan to pay off your Credit Cards by applying all the money your budget allows to the card with the highest interest rate. When that card is paid off – then pay off the card with the next lowest rate and so on. It is very important that you continue to make the required minimum monthly payments on all your other outstanding cards throughout this pay-down plan.
  4. Depending on your requirements – choose two credit cards to keep for future ‘emergency only’ use. Most people at this point decide to drop the high-interest department store cards and keep major bank cards.
  5. Once you have paid off those credit cards that you do not plan on keeping – cancel them in writing.
     

Step 4 - Do It - Now!

Just Do It Now. No excuses. No putting off. The sooner you start – the sooner you will be debt free.

Step 5 - Keep Doing It!

Live within your budget – cut your expenses & stick with it! Discover how powerful you are by controlling your expenses and building for your future and peace of mind.

Once you have paid off your credit card debt and cancelled those non-essential cards - check your Credit Rating and History to make sure it accurately reflects your improved credit situation.

Credit Card Smarts

Here are some great information and resources links that will help you keep control over your Credit Card Debt.

Financial Consumer Agency of Canada - has excellent information on credit cards and credit card use. Take their quiz - it is a real eye opener.

Visa Canada offers exceptional credit card information on their website - - a recommended ‘must read’ for the savvy consumer.

Live Happy – Live Below Your Means. Learning to avoid Credit Card Debt and cutting expenses can be an adventure in positive living. There are hundreds of no-cost online websites, forums and blogs with ideas on how to save on your living costs and avoid Credit Card Debt. To get you started on the adventure - here is a list of just a few of the great sites out there:

Dealing With Credit Card Debt

If you are too far in Credit Card Debt to be able to manage your way out – speak with the Professionals at David Sklar & Associates (Licensed Bankruptcy Trustees). With six offices in the Greater Toronto Area, and a Free Initial Consultation – we can help you to explore your financial situation and available options in a positive and constructive environment. Call 416-498-9200 or get started with our Quick Assessment Form to book your Free Consultation.

David Sklar & Associates Inc - Greater Toronto Ontario Bankruptcy Trustee
Consumer Proposals ~ Debt Consolidation ~ Debt Management ~ Bankruptcy
Toronto ~ Mississauga – Etobicoke ~ North York – Scarborough ~ North York West ~ Pickering – Ajax ~ Brampton