5 Tools to Get Out of Credit Card Debt Today

It’s been a difficult year for many, but hope is just around the corner. Millions of people have struggled since the coronavirus pandemic as they’ve lost income and relied on debt to keep going. As things go back to normal and the economy recovers, people are feeling hopeful.

They’re getting back on track, but they’re not free and clear. They still have to deal with the debt they wound up in.

If you relied on credit cards, payday loans, or other types of debt to get by, it could seriously hurt your budget even once you’re back to work. Getting out should be your number one financial priority, and these five tools can make it happen.

Financial Assessment

When you’re deep in debt, it can be hard to see the way out. You may not even realize how big the problem has grown. That’s when it comes time to get help. A certified Credit Counsellor from a non-profit credit counselling agency can review:

  • Your total debts, expenses, and income,
  • Your credit report and score,
  • Your options for finding debt relief and stopping collection calls.

You can get a free financial assessment from Credit Canada, a non-profit credit counselling agency where a certified Credit Counsellor can help you decide the best way forward.

Debt Consolidation Program

The secret to quashing high credit card debt is interest rates. Interest accumulates on your credit card balances every month, and you have to pay it off before you even touch the principal. It keeps you paying as much as possible, for as long as possible.

That’s how a Debt Consolidation Program (DCP) makes a huge difference. In a DCP, a certified Credit Counsellor from a non-profit credit counselling agency negotiates with your creditors to reduce or eliminate the interest they charge on your debts. It will also stop collection calls, which will be a huge relief.

When you don’t have to pay interest, every dollar you put toward debt repayment is progress.

Budget Calculator

Once you’ve received relief from interest rates, you want to maximize the amount you put toward it. Using a budget calculator will help you plan out your finances and maximize the amount of money you can put toward credit card debt each month.

A budget calculator can also help you identify spending items you want to eliminate from your lifestyle, such as too much takeout or too many impulse purchases.

Spending Tracker

Do you worry about every single thing you buy? When you’re trying to stay on a budget, a spending tracker app is a convenient way to keep yourself honest. In all likelihood, you’re not going to be able to keep up with writing down all your daily expenses in a notebook or spreadsheet at home. A tracker app can connect to your bank account securely and track debit card payments, so you always know whether or not you’re on track.

Financial Goals

Last but not least, you need a goal. Getting out of debt takes motivation. The next time you’re feeling too tired to cook, and you’re scrolling through a delivery app, you need a goal if you’re going to fend off temptation. Whether it’s a dream vacation or a down payment on a house, you can rely on your goals to keep you on track.

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