How to Pay Off Credit Card Debt

Although credit cards are a convenient payment tool and common form of accessing credit, many people end up struggling to clear their credit card balances – sometimes for years or even decades. BC Consumer Debt Studies have shown that credit card bills are the number one driver of debt problems for individuals polled.

Whether you’ve made it a personal goal to pay off your credit cards or if you’ve long struggled to see a zero balance, there are a number of different strategies you could use to get your credit cards paid off. Read on to learn expert tips for solving credit card debt, including ways to pay off credit card debt, getting credit card payments lowered, and common problems to avoid when it comes to credit card bills.

Solving credit card debt can feel challenging, but it can be done!

4 Ways to Pay Off Your Credit Card Debt

Not paying your credit card balance in full each month can accumulate a high-interest debt that becomes increasingly difficult to pay off. Because of this potential for credit card balances to become unmanageable quite quickly, staying ahead of accruing interest charges while making monthly payments affordable are two of the biggest keys to successfully paying off your credit card debt.

1. Negotiate or Switch to a Lower Credit Card Interest Rate

Even a 2-3% drop in your interest rate can make paying off your credit card debt easier. If you’re comfortable advocating for yourself, your credit card balances are reasonably low, and you haven’t missed any payments in the past, consider the following actions:

• Contact your credit card issuer(s) and ask if they can give you a better credit card rate. Customers who make all their minimum payments on time and have been long-time customers may be able to negotiate a lower rate.
  • Be prepared before you call: Do some interest rate comparisons so you’re aware of what is being offered elsewhere and be straightforward and calm in your approach. 
• If one of your credit cards has a lower interest rate than the other (and is not maxxed out), you may want to take advantage of the lower rate by transferring the balance on the higher card over. If you opt for a balance transfer, be sure to clarify:
  • Whether you’ll be charged any balance transfer fees.
  • If there are temporary “promotional” terms such as a reduced interest rate that will expire.

5

Based on 4965 reviews

Review Us

– User 2026

I am incredibly grateful for the exceptional support I received from Mr. David Tang. He is highly professional, honost, and truly understanding professional. He guided me through every step of this process with the utmost care, dedication, and respect. His guidance made a huge difference for me, and I highly recommend Mr. David Tang to anyone needing assistance. He is truly a trustworthy person. – User 2026 – 3 days ago 

read moreread less

– Paul Chibanoff

The people at Sands and Associates were so very helpful. Zero judgment, very positive, and super friendly. Sandra Wolverton is very professional and knows just what each client needs. She is a wealth of knowledge in her field and I will be recommending her to anyone who requires assistance in this area. Thankyou to Sandra so much, my financial stress level has dropped to zero. – Paul Chibanoff – 3 days ago 

read moreread less

– Chris Boyd

Sandra was very friendly, knowledgeable, the process was straightforward and eased my financial stress swiftly. I would recommend highly Sands & Associates for your needs! – Chris Boyd – 3 days ago 

read moreread less

– Nadine

such a great help!!! – Nadine – 3 days ago 

read moreread less

– Alana Keller

I’d give six stars if available. I’ve had nothing short of great service. The patience Camille showed me made the stress of going through this financial crisis doable. With both Camille and Jennifer graciously giving me their advice and support I am able to move forward with a sense of relief. Amazing people working for an incredible organization. Thank you ladies!!! – Alana Keller – 3 days ago 

read moreread less

– Alicia Browne

I had a great experience working with Sands and Associates(specifically with Michelle Santos), they helped me every step of the way with my debt consolidation. Made it easy and painless. I’d recommend working with them for any debt relief. – Alicia Browne – 4 days ago 

read moreread less

– Kitty Isis Awen

I’m one of the biggest cheerleaders for all the amazing folks at Sands. If you ever find yourself in debt, even if it seems insurmountable, going with a trustee is the best way to protect yourself. They will have your back and give you all the tools you’ll need to get back on track. There’s no judgment, no stigma and no shame. They are all truly there to help

Thanks everyone ☺️ – Kitty Isis Awen – 4 days ago 

read moreread less

– KATHY HANES

Highly professional company. Selina, very easy to work with. Made a very stressful time easier to deal with. – KATHY HANES – 5 days ago 

read moreread less

– Richard Hanes

Very good pleasant informative easy to work with – Richard Hanes – 5 days ago 

read moreread less

– Samuel Harper

Marianne has been a great LIT to me – Samuel Harper – 5 days ago 

read moreread less

2. Prioritize Paying Off Credit Cards with the Highest Interest Charges First

If you want to stick to a do-it-yourself debt repayment plan and are dealing with multiple credit card bills, you may want to prioritize which card you work on paying off first, based on the amount of interest you’re being charged. For this strategy, consider the following next steps:

• Make a list of all your credit card debt, with the highest interest debt at the top.
• Decide how much you can pay each month over the minimum monthly payment requirements.
• Make all your monthly payments on each card, paying the extra money on your high-priority (highest interest) card.
• Once the first card is paid off, move the extra payments on the next one – rinse, repeat!

Or – some people find it easier to stay motivated with a build-up approach where you will instead Prioritize Paying Off Your Card with the Smallest Debt Balance First:

• List all your credit card debts, with the smallest balances at the top.
• Make all your monthly payments on each card but use the extra money to pay off just one card at a time, starting with the smallest debts balances first.

If you’re juggling multiple debts, you may find it helpful to consolidate the balances into one combined monthly payment, and there’s more than one option to consider for consolidating your credit card debt.

3. Use a Line of Credit or Consolidation Loan to Refinance Your Credit Card Balances

Turning to a bank will generally offer you two solutions: a line of credit or a debt consolidation loan.  These options can help you pay down your credit card debt if:

• You can qualify for a loan with an interest rate better than you’re currently being charged on the credit cards you’re consolidating.
• The loan’s monthly payment is lower than your current combined monthly payments.
• All (or most of) the debts you owe can be covered in the consolidation.
• You can avoid accumulating new debt (through the credit you’ve freed up, or otherwise).
  • Avoid the temptation of taking out a line of credit with a limit higher than what you need to pay off your credit card debt.
  • Ask your credit card providers to lower your credit card limits to avoid carrying too high a balance again – and if you can do without a card once it is paid off, close the account.

Understand the Pros and Cons of Debt Consolidation

4. Lower Your Credit Card Payments and Cut Your Debt by Filing a Consumer Proposal

If you want to substantially lower your monthly credit card payments and reduce your debt-load, a Consumer Proposal is a unique and powerful debt solution to consider.

A Consumer Proposal is a non-borrowing option available through a Licensed Insolvency Trustee, where you can pay off your consolidated debts without any interest or borrowing charges, and also only repay the portion of the debt you can afford – credit card lenders (and other creditors) will agree to write-off the rest.

Here’s how a Consumer Proposal works in brief:

• Most people offer a monthly payment for a set period (of up to five years), and your total debts can often be reduced by up to 50-80%.
  • Almost every type of debt can be included in a Consumer Proposal – from credit cards to income taxes, payday loans to student loans and more.
  • You have the option to keep making the payments for secured debts like your vehicle loan or mortgage if you want to retain those specific assets.
• There is no borrowing, credit check, or co-signer required to do a Consumer Proposal and your creditors will not be allowed to continue charging you interest.
• Monthly payments are usually substantially lower in a Consumer Proposal compared to bank-based consolidation that requires you to repay all your debts in full with interest – and lower than credit counselling plans that charge fees for services (yes, even non-profit plans) and still require you to repay 100% of your debt, with an interest-freeze on certain debts.
• There are no added fees or hidden costs in a Consumer Proposal. All you pay is what you’re offering to your creditors.

Is Your Credit Card Debt a Problem?

For many people, the major challenge with credit card bills is that every time you don’t pay your balance in full by the due date, you are going to be charged interest. Even for a small balance, interest charges mean the cost of everything you’ve purchased has just increased.

If you regularly carry a credit card balance, here are some warning signs that your credit card debt is (or is becoming) a problem that you should address immediately:

• You’re carrying a balance month after month on your credit card
• You use your credit card for cash advances
• You can’t get through the month without relying on your credit card
• Your balance keeps getting bigger (especially if you’re making payments at the same time)
• You only make the minimum payment required, or just slightly more than
• You’re close to hitting your credit limit
• You are also using payday or ‘fast cash’ instalment loans
• You feel stressed about your credit card balances

Expert Tips for Paying Off Your Credit Cards

As you tackle paying off your credit card debt it’s important to think about how it accumulated in the first place so you can take steps to prevent the same thing happening again (where possible). For example:

• Were you overspending because your budget isn’t aligned to your actual income and expenses?
  • In this case you’ll want to take the time to sort out your budget (being sure to account for funds to pay off your credit cards) and regularly track your incoming/outgoing money.
• Making sure your budget is in check and controlling spending will be a key step in any strategy to getting – and keeping – your credit cards paid off.

Here are some more debt expert tips to consider when it comes to credit card debt.

The ‘Rule of 60’ Math and Credit Card Payments

To move forward with a plan to pay off your credit cards, start by understanding where you’re at. Do a quick ‘Rule of 60’ calculation: Add up your total unsecured (i.e. non-mortgage) debt then divide that number by 60.

• Is the resulting number a monthly payment you can consistently afford to pay off your debts in the next five years (60 months)?
• If not, or if you feel payments may not be sustainable, a plan such as a Consumer Proposal that can cut your credit card payments and overall balance significantly is an ideal debt solution to explore. 

Compare Your Debt Options

Enter your total amount of debt (excluding mortgage and car loan) and we’ll show you a list of options.

Always Pay More Than the Minimum Payment Required on Credit Card Bills

Making only your required minimum monthly payment is often only keeping your account from falling into delinquency, and it won’t be enough to curb mounting interest charges and pay down your principal balance efficiently.

If you can only afford to make minimum payments, or your debt payments create a constant gap between your income and expenses, understand that these are signs of a debt problem that needs action. Talk to a Licensed Insolvency Trustee right away to understand your options.

Learn More About the Minimum Payment Trap

Stop Using Credit and Be Cautious Using Credit as a Debt Solution

You may not be able to avoid new interest charges, but you must stop using credit and incurring more debt if you want to get your credit cards paid off.

• If you use your credit card, only do so for purchases you have the cash on hand to pay back right away, and pay the balance as soon as the purchase is made.
• Consider using a secured credit card instead of a regular credit card and implementing a ‘cash-only’ spending rule for yourself.
• Proceed with caution when using balance transfers, consolidation loans, or other types of borrowing to deal with debt. Some common pitfalls to these solutions can include:
  • Unaffordable (or lengthy) monthly repayment terms.
  • Borrowing conditions like pledging an asset as collateral or bringing in a co-signer.

Learn More Do’s and Don’ts for Credit Cards

Think Twice Before Accepting Funds from Family or Friends

Family or friends may offer to help you financially, either by lending you money to pay off your creditors, or by co-signing a consolidation loan for you. Though this might seem helpful,  many debt help professionals caution against this, and for good reason:

Accepting a personal loan or legally involving a family member or friend in your finances can backfire financially and has the potential to strain your most important relationships at the same time.

• If you have someone that wants to financially support you in dealing with debt you can’t afford to repay on your own, talk with a Licensed Insolvency Trustee before taking any action.
• There are many ins and outs when it comes to the laws and resources around consumer debt, and knowing is not owing.

Don’t Procrastinate or Delay Seeking Professional Debt Help

Dealing with a debt problem, or bills that seem never-ending can feel stressful, overwhelming, and paralyzing. It’s important to understand that the problem is not going to resolve itself – you need to act, sooner rather than later.

• Be honest with yourself about your situation and know that you are not alone.
• Talk with a Licensed Insolvency Trustee about your situation and all of your options. From there you can make an informed decision about which strategy will work best for you.
  • You don’t need to be facing a financial crisis to seek free, confidential advice from a Licensed Insolvency Trustee.

Free, Professional Advice and Solutions for Credit Card Debt

Licensed Insolvency Trustees are Canada’s official government-approved debt help professionals, and we help people with a range of needs, financial challenges, credit scores, and debt situations.

• Licensed Insolvency Trustees offer free, confidential debt consultations to talk about your situation and explore all of your options – in just 30 minutes you will be able to get a debt-free plan that’s right for you, and a clear outline of your next steps.

Sands & Associates serves all of BC and our caring, non-judgmental experts make it easy to get debt help. We believe everyone deserves to live with dignity, and without the overwhelming stress of debt.