At Credit Canada we can get a little obsessed about getting rid of debt... okay a lot, but it’s who we are and what we do!
Our certified credit counsellors are professional debt experts. They speak to people every day who are affected by debt, seeing first-hand the consequences of living with debt that you can no longer manage, including the stress it can sometimes cause families and relationships. It’s no surprise that if there’s a way to get out of debt our counsellors know about it. Plus, they can sniff out savings from some very creative places.
In this week’s blog we’re going back to our roots and giving you our 20 best get-out-of-debt hacks, put together by none other than our in-house experts and counsellors.
20 Credit Canada Debt Hacks
1. Pay high priority bills first.
2. Always pay your bills on time.
3. Always pay more than the minimum payment on your credit card bills—pay the maximum you can afford.
4. Get Credit Canada to negotiate with your creditors—call 1.800.267.2272 and we’ll tell you how.
5. Create a realistic Budget.
6. Use a Budget Calculator to see what expenses you can cut that will help pay off your debt.
7. Have a certified credit counsellor review your budget for free. Call 1.800.267.2272 to book a free appointment.
8. Don’t use one credit card to pay for another.
9. Use cash for day-to-day spending.
10. Write down your financial goals to stay motivated.
11. Keep Post-It’s in your wallet to remind you why you’re cutting costs and saving.
12. Use a Budget Tracker to track your spending every month.
13. Unless it’s an emergency, DO NOT USE your credit card if you cannot pay off the full amount by the time you receive your statement.
14. Always keep the minimum required amount in your bank account so you don’t get charged service fees.
15. Use a credit card with no annual fee. There are lots of no-fee cards out there.
16. Use an Automatic Savings Program (ASP) to help save for a vacation, wedding, or down payment on a house instead of taking on more debt.
17. Shop around for the best insurance rates, cell phone plans, gym memberships, etc.
18. If you absolutely must go over budget in one area of your expenses, such as food, spend less in another category, such as entertainment, to stay on track.
19. Ditch the car and get a transit pass and/or Zipcar account to save on car insurance, parking, car repairs and gas.
20. Don’t spend to impress others.
Getting out of debt is possible with the right help and support, and not falling back into debt is easy if you complete a Debt Consolidation Program with Credit Canada. In fact, less than 1 percent of our clients who complete our Program run into debt troubles again, so you know it works! If you need help give us a call at 1.800.267.2272 to set up a free appointment — all of our counselling is free! — or fill out our Free Debt Assessment. It's 100% confidential and 100% non-judgement, because debt affects us all.
Frequently Asked Questions
Have a question? We are here to help.
What is a Debt Consolidation Program?
A Debt Consolidation Program (DCP) is an arrangement made between your creditors and a non-profit credit counselling agency. Working with a reputable, non-profit credit counselling agency means a certified Credit Counsellor will negotiate with your creditors on your behalf to drop the interest on your unsecured debts, while also rounding up all your unsecured debts into a single, lower monthly payment. In Canada’s provinces, such as Ontario, these debt payment programs lead to faster debt relief!
Can I enter a Debt Consolidation Program with bad credit?
Yes, you can sign up for a DCP even if you have bad credit. Your credit score will not impact your ability to get debt help through a DCP. Bad credit can, however, impact your ability to get a debt consolidation loan.
Do I have to give up my credit cards in a Debt Consolidation Program?
Will Debt Consolidation hurt my credit score?
Most people entering a DCP already have a low credit score. While a DCP could lower your credit score at first, in the long run, if you keep up with the program and make your monthly payments on time as agreed, your credit score will eventually improve.
Can you get out of a Debt Consolidation Program?
Anyone who signs up for a DCP must sign an agreement; however, it's completely voluntary and any time a client wants to leave the Program they can. Once a client has left the Program, they will have to deal with their creditors and collectors directly, and if their Counsellor negotiated interest relief and lower monthly payments, in most cases, these would no longer be an option for the client.
