[et_pb_section fb_built=”1″ _builder_version=”4.22.0″ top_divider_style=”ramp2″ top_divider_color=”#E7DFF3″ top_divider_height_tablet=”” top_divider_height_phone=”” top_divider_height_last_edited=”on|phone” bottom_divider_style=”curve2″ bottom_divider_color=”#5B25AF” bottom_divider_height_tablet=”80px” bottom_divider_height_phone=”50px” bottom_divider_height_last_edited=”on|phone” da_disable_devices=”off|off|off” global_colors_info=”{}” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||0px|||” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
By Carmen Chan<\/em><\/p>\n Credit cards are an easy way to pay for everything from day-to-day living expenses to big ticket items, but at times, credit card charges can pile up fast and you can find yourself with a lot more debt than you anticipated. If you\u2019re struggling to keep up with your credit card bills to the point where even the minimum payment is hard to come up with, you\u2019re not alone. Credit card debt has reached an all-time high in Canada, and over 50 percent of Canadians say they have \u201ca lot of anxiety\u201d when it comes to managing their debts.<\/p>\n But you can take action. Here\u2019s how:<\/p>\n Don\u2019t bury your head in the sand – face your debts head-on. To start, assess your debt situation in its entirety. Sit down with a notebook and pen and list out each of your outstanding credit card balances. Record:<\/p>\n Tally up how much you\u2019re in the red. From here, you\u2019ll know exactly how much you owe to each creditor and when you need to make your next payment. Even if you owe more than you think you can repay, knowing is better than not knowing; really, it is. Because then you can remain in control, rather than letting your creditors take over. [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ make_equal=”on” custom_padding_last_edited=”off|tablet” _builder_version=”4.22.0″ width_tablet=”80%” width_phone=”80%” width_last_edited=”on|phone” custom_margin=”-4px|auto||auto||” custom_margin_tablet=”||-35px||false|false” custom_margin_phone=”||-35px||false|false” custom_margin_last_edited=”on|phone” custom_padding=”2px||14px|||” custom_padding_tablet=”||0px||false|false” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”1_2″ _builder_version=”4.16″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.0″ custom_margin_tablet=”45px||||false|false” custom_margin_phone=”45px||||false|false” custom_margin_last_edited=”on|phone” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n You can\u2019t abandon your fixed expenses, such as your mortgage, car payments, and energy bills to keep your house running. You could lose the roof over your family\u2019s head or see your power supply cut off if you do. However, there might be options to scale back services to what you\u2019re really using. Call each utility company and ask what they can offer you. Many have hardship options, too.<\/p>\n Determine what your budget can manage, with these priority expenses in mind. To do this, account for all of your income, using pay slips and bank statements. Next, add up all of your outgoing costs. How much is left over from your monthly income to apply to your debts?<\/p>\n Interactive Budget Calculator Spreadsheet \u2013 Make Budgeting a Breeze<\/a><\/p>\n You may need to shift to a bare bones budget for a few months with little wiggle room for discretionary spending, like eating out or going shopping, so every cent is going towards repaying your debts.<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_intensity_slide=”2%” custom_css_main_element=”margin: auto;\t” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/nomoredebts.org\/wp-content\/uploads\/2023\/09\/couple-budgeting-credit-card-debt-800px.jpg” alt=”A couple budgeting together to manage their credit card debt.” align=”center” _builder_version=”4.22.0″ max_width_last_edited=”off|desktop” max_height_tablet=”none” max_height_phone=”none” max_height_last_edited=”on|phone” custom_padding_tablet=”||50px||false|false” custom_padding_phone=”||50px||false|false” custom_padding_last_edited=”on|phone” animation_style=”slide” animation_direction=”right” animation_duration=”2000ms” animation_intensity_slide=”5%” border_radii=”off|200px|20px|200px|20px” box_shadow_style=”preset2″ global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”4px||11px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}” theme_builder_area=”post_content”]How to Create an Emergency, Bare Bones Budget<\/a><\/p>\n Your aim is to have enough funds to pay at least the minimum payment on your credit cards without continuing to use them on an ongoing basis. If you can\u2019t do this, you may face additional fees, a higher interest rate, a hit to your credit score, and growing debt as interest accumulates.<\/p>\n If it looks like you can afford to make regular payments, set up a direct debit from your bank account to your credit card before the due date each month. This ensures you won\u2019t face any late or missed payment charges.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.22.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”11px||50px||false|false” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.24.2″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||0px|||” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n If you\u2019re struggling to keep your head above water with the minimum payments and ballooning debt, it\u2019s time to contact your credit card company to explain your situation. Rehearse what you\u2019ll say and create point form notes that include:<\/p>\n Contacting your credit card company shows accountability and initiative. Instead of letting your account go into arrears, you\u2019re explaining why you\u2019re facing financial difficulty and providing potential solutions that work for both parties.<\/p>\n How to Deal with Debt Collectors & Communicate with Creditors<\/a>Perhaps you\u2019ve been laid off, have to pay for an emergency home repair, or you\u2019re grappling with a medical emergency. Informing your creditors gives them an opportunity to help you. They may do so by:<\/p>\n If it feels overwhelming to deal with your credit card company directly, or if you\u2019re in arrears already, keep reading; you might need professional help.<\/p>\n Signs That You Need Professional Help with Your Debts<\/a><\/p>\n If you could really use some help with your debt, there are a number of debt consolidation options that are available to help you pay off your credit card debt. Each one has its pros and cons, so it\u2019s important to speak with a qualified credit counsellor before you make a decision about what to do.<\/p>\n An avoidable trap that some consumers fall into is a balance transfer, which means you\u2019re moving the debt on your credit cards onto a new card with less interest. In some cases, you may qualify for a credit card with zero percent interest for the first three to six months, giving you time to get your finances in order. You must watch out for any fees tacked on with the transfer and make sure that it\u2019s a lower interest rate beyond the short-term promotion.<\/p>\n Credit card balance transfer promotions<\/a> often look great up front. However, it can be hard to pay off what you owe before the promotional interest rate expires. If a low rate doesn\u2019t continue, and if you don\u2019t stick with high monthly payments to pay off what you owe, you might just end up with another credit card you can\u2019t afford to pay.<\/p>\n If you need more help, seek professional financial assistance<\/a> through organizations such as ours. One of our credit counsellors will meet with you either in person or by phone and review your situation with you. They\u2019ll answer your questions and provide you with guidance. It\u2019s free, confidential, and helps you decide how best to get back on track.<\/p>\n1. Figure Out How Much You Owe<\/h2>\n
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<\/p>\n2. Assess Your Budget<\/h2>\n
3. Call Your Credit Card Company<\/h2>\n
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4. Consider Credit Counselling<\/h2>\n