Credit Card Debt

In 2010, Canadians charged nearly $267 billion to their credit cards. According to Equifax Canada, by September total outstanding credit card debt hit $78 billion, which was up from $76 billion in September 2008.

30% of your FICO Credit Score consists of "Amounts Owed." This means that if you a high credit card balance, your score can dras tically decrease. According to financial experts, your balance should be no higher than 35% of your credit line. For example, if your credit line is $2,000.00, you should keep your balance at $700.00 or below.

Canadian credit card companies relish those consumers who can only pay the minimums on their accounts. The less money you pay them, the more money they get to tack on in interest. Before you know it, your interest rate has ballooned up to 20%. That's when the creditors receive the huge profits.

If you keep letting that credit card debt pile up, you may get to the point where you can't even pay the minimums. You may suffer a job loss or a medical emergency. Next thing you know, you're delinquent on all three of your credit cards and your FICO Score is butchered. That's why it's essential that you seek credit card debt help as soon as possible. Get started now!

Many Canadians are seeking out how to pay off credit card debt. You can either do it yourself or seek the help of a professional. Do-it-yourself methods can work, but they require much discipline on your part.

Technically speaking, getting a second job could reduce credit card debt. Sometimes it's hard to get by on one job, even if it pays a good salary. If you possess an overbearing amount of credit card debt, you could be living on a paycheck-to-paycheck basis. A second job could provide the supplemental income you need to help eradicate those debts.

Another way to supplement your income would be to sell your unwanted belongings. Take a look around your living room or garage. Rather than let all that excess stuff (furniture, clothes, electronics, etc.) gather dust, you could sell them online on E-Bay or Amazon.ca, or simply hold a garage sale. With all the money you earn on those belongings, you could end up eliminating one-fifth of your credit card debt!

One hint of advice to Canadians with high debt would be to stop using your credit cards. Some people continue to use their cards, even though they're already in debt. Needless to say, that will just dig you into a deeper hole. If your balance is already high, chances are it will take a while to pay off, but using the card while in debt will prolong the process even more. Therefore, if you have the cash, use it. Better yet, use a debit card. As long as you stick to purchases that you absolutely need to make, you won't even have to carry that card in the near-future.

If you can pay your balance in full, do it. The minimum payment option is not an easy way out. Don't pay the minimum and use the rest of the money to embark on a shopping spree. For that reason alone, the "automated payment" option may not be completely helpful, though it will certainly ensure that your bills get paid on time. If you use that option to pay off your credit card, only the minimum payment will get deducted each month. Then again, for some people, paying their credit card balances in full is easier said than done. If your balance is $5,000.00, the chances are low that you'll have enough pocket change to pay it off.

In cases like those, it would be wiser to take smaller steps. For example, you can list all your credit cards in order from those with the highest interest rates to those with the lowest. Let's say your credit card with the highest interest rate requires a minimum payment of $155.00. Instead of paying that amount, you can round it off to $200.00. Meanwhile, you can pay the minimum on your other cards. As time goes on, you can take the next step and pay more than the minimum on your card with the second highest interest rate. This won't eliminate your credit card debts quickly, but it will speed up the process.

You can also use the balance transfer method. If you're already carrying a huge balance on your card, this option may at least cause you to pay less money in interest. A lot of credit cards will offer an introductory rate of 0% interest. If the option is available, you can transfer your existing balance to the new card. This way you'll pay just the balance and not the interest. However, you must already have good credit to be approved for the new card. Be forewarned that the introductory rates usually last approximately six months. Once that period is over, you can transfer that balance to another card with the same 0% rate. If you're forgetful about transferring your balances to new cards every six months, you could just transfer it to one with a low interest rate. In this way, you still save money.

These do-it-yourself methods can work for some people, but the best advice would be to consult a professional. You may think you know how to settle your debts, but it's always more practical to hire someone with expertise in the matter. That's where Premier Debt Help enters the equation. Get started now!

For Canadian residents, hiring Premier Debt Help Canada for your credit card debt settlement needs will reduce the hassle of settling them on your own. As long as you have at least $10,000.00 in debt, you can qualify. When you contact us for your services, a personal debt settlement coach will analyze your finances and devise a payment plan.

For the first few months, you stop paying your creditors and gather your money into a debt settlement fund. After that period is over, we will negotiate with your creditors, so that you can pay them off at a reduced rate of up to 30% of what you owe! Paying off credit card debt on your own can take several decades. Under our debt settlement program, you pay them off in a matter of 12 to 36 months!

Unlike with other credit card debt solutions (i.e.: credit counseling, consumer proposals), we won't bombard you with fees. No fees are charged up front. We don't get paid unless your debts get settled. Call now for your free consultation! Get started now!