When used properly, a credit card can be a useful tool. However, despite the good intentions of consumers, nearly 40% of Canadians do not pay off their credit card full balance each month.

This is particularly worrying when you consider that their interest rates are often high. If this is your case, don't panic. There are several ways to regain control and restore your financial health.

1. Review Your Budget

Take the time to effectively assess your income, but most importantly, all your expenses such as restaurant, cell phone, groceries and clothing. Make sure you focus on the essential expenses and set up a budget schedule. Also avoid impulsive purchases. Far too many people have the bad habit of living beyond their means. It is essential to get your act together and not spend more than you have.

2. Ask for a Lower Interest Rate

Since there is strong competition between credit cards, your issuer may very well lower its rate rather than risk losing you as a customer. In the worst case, they will refuse, but you lose nothing by trying.

3. Consolidate Your Debts

Debt consolidation makes it easier to manage money. It reduces your overall interest rate and allows you to pay down your debt more quickly. Once in place, you will only have to make one monthly payment.

4. Prioritize the Payment of Your Cards with the Highest Interest Rate

Start by paying off the most expensive card and beware of the temptation to pay the credit card with the smallest balance. Once you have paid the credit card with the highest interest rate, you can move on to the next one.

Also consider accelerating your payments and paying more than the minimum payment required to avoid having to deal with a debt for several years.

Don't know where to start? No problem! There are several solutions that can help you get rid of your debts. Contact us.