InCharge Canada – Simple Strategies to Help Eliminate Credit Card Debt ‐ page 1
Simple Strategies to Help Eliminate Credit Card Debt
Managing debt takes persistence and dedication but once you rein in your debt, you'll be
glad you did, and you'll be much better off financially and emotionally.
Here are a few ways to get you started toward eliminating your debt:
• Pay more than the minimum payment each month. Did you know the minimum
payment amount is usually 2 to 3% of your balance? On a $2,500 credit card
balance with a 2 percent minimum payment, you would pay only $50 toward
decreasing that debt and the majority would be applied towards interest and not
principal. Pay a little more than the minimum payment required each month and
you'll be surprised at how fast that credit card balance decreases.
• Stop using all your credit cards except for the one that gives you the lowest interest
rate. Don’t use that credit card unless absolutely necessary. Cancelling your credit
cards may negatively impact your credit score, so lock them up but don’t cancel
• Gather all of your most recent credit card statements, sit down with a pencil and
paper, and write down the balance of each debt and the interest rate charged.
Beginning with the lowest interest rate debt(s), pay only the minimum amount due.
• On your highest interest rate debt, pay the minimum payment plus any additional
amount you can afford. Once this debt is paid off, go to your next highest interest
rate debt and apply the money you were paying toward the first debt towards the
second debt. Also add the minimum you were paying on the second debt and keep
paying the minimum due on the others.
Continue to do this until all of your debts are paid off. This may take a few years, but don’t
get discouraged. The feeling you get from being debt-free is priceless!
1. Pay more than the minimum due.
2. Lock up your credit cards.
3. Don’t get discouraged.
4. Stay motivated!
InCharge Canada – Simple Strategie