If you’re looking to break free of personal debt once and for all, we can help. We provide debt and bankruptcy solutions that are life-changing and permanent, so you can erase debt from your life.
Our Life-Changing Debt Solutions are designed to permanently get you out of debt once and for all – so you can stop worrying and start living again.
Debt can be overwhelming. For that reason, our Licensed Insolvency Trustees are always here for you. let’s discuss the options available to you. Your debt-free future starts now.
Accessing and using credit is easier than ever. And that’s certainly convenient for some. But for others it means accumulating balances and interest charges faster than they anticipate — or can manage.
Do you feel regret, anxiety or panic arise when you see your debt balances growing, rather than shrinking? You’re not alone. If you’re tired of revolving cycle of debt and remorse, you could be ready to reduce, and potentially eliminate, the use of credit cards for good.
But remember, your credit card debt did not happen overnight. It will take a lot of time and focused effort to pay your balances down. Pairing a realistic plan and a lot of patience is the best way to make your debt management dream a reality.
Following is an effective, straightforward two-stage strategy you can begin using right away.
First things first, you need to get your credit cards back to a point where they no longer feel so overwhelming. But there is more you can do beyond just making your payments on time and in full.
You can also:
If your plan is to eliminate your credit card debt, the worst thing you can do is work against yourself. Commit to not using your credit cards while you’re paying them off. This might require something as simple as locking them on your online banking app, or as extreme as freezing them into a block of ice.
Your card provider may be willing to reduce your current interest rate over a negotiated timeframe, or help you switch to a new card option with a permanently lower interest rate. You just have to ask.
Even better, see if they’re offering any low or zero interest balance transfer offers. Even six months without paying interest will be a massive help in your debt reduction plan.
Just beware of any service fees or penalties for missed payments — and be sure to pay back as much as you can over the interest-free grace period to avoid large, unmanageable payments later.
Work backwards to create a realistic pay off schedule that eliminates as much of your balance(s) as possible before your reduced interest rate expires. A budget is super helpful here, as it will help you understand how much disposable income you have and prevent any shortfalls that may cause you to continue using credit.
Consider reducing your credit card limits as you pay down the balances. This will ensure you avoid working against yourself by unwittingly reusing any available credit you’re creating.
With that said,
don’t do this until your balances are well below the existing limit. You could damage your credit rating if your balances are more than half your available limit.
Once you’ve paid your cards off, you have a choice to make: You can keep the cards at low limits and pay new transactions off each month. Or, if you believe its likely you’ll reaccumulate debt, you can cancel the cards altogether.
Do some research first to find out how this may affect your credit score. For instance, it’s better to keep the credit accounts you’ve had the longest — especially if you have a good history. Cancelling a more recently obtained card likely won’t impact your credit as severely.
Once you reduce your balances and limits, it’s time to decide how you’re going to manage future credit card spending.
Set aside a designated amount for monthly credit card spending and stick to it. Keep a record of any transactions or subscriptions which charge to your credit cards and transfer those funds to the card before your monthly statement arrives.
For regular purchases or transactions, get into the habit of transferring money directly from your chequing account onto your credit card immediately after the purchase. If you cannot afford to pay for the item in cash, you cannot afford to pay for it on credit.
Not all your expenses are predictable from month to month. Things like your membership to a certain warehouse store, oil changes for your vehicle and even pet food might sneak up on you quarterly — even yearly — and that makes them easy to forget about.
And when they don’t make it into your budget, out comes the credit card!
The solution is to prepare. Create an itemized list of annual, semi-annual or quarterly expenses. Add them up and divide by twelve. Set this aside in a separate account every month. When one of the items comes up on your list, use these funds rather than a credit card.
It’s a challenge to forego credit in today’s world. But certainly not impossible. Changing your behaviour will take time, but thankfully there are options available to help you on that journey.
No matter which strategy you choose, be realistic and know that it will take time to stop using your credit cards as much. If you start implementing the strategies above to reduce and eliminate credit card use, you’ll be well on your way.
If you’ve tried all the steps above and you’re still struggling to manage your credit card debt, there are options to get the lasting relief you need. Reach out to a Licensed Insolvency Trustee for a no obligation Free Confidential Consultation today to see which one would work best for you.
During this initial meeting you will review your financial history, discuss your challenges and goals and uncover opportunities to defeat your debt for good. If you qualify for a Life-Changing Debt Solution such as
Bankruptcy or a
Consumer Proposal, you may be able to become debt free in as little as nine months. Licensed Insolvency Trustees can also help you connect with other financial and wellness resources to ensure you get the best advice and all the help you need to succeed on your journey to become debt free.
No matter the challenges you’re facing, there’s always a solution. Stop struggling with your debt in silence. Call today and get the help you need and the outcome you deserve.
Based out of Abbotsford,
Linda Paul is a Licensed Insolvency Trustee and Senior Vice President at MNP LTD. To learn more about how MNP Debt can help, contact our local office at 310.DEBT (310.3328) or toll-free at 1.877.363.3437.
Based out of Courtenay,
Selina Jacobson is an Assistant Estate Manager and Registered Insolvency Counsellor at MNP LTD. To learn more about how MNP Debt can help, contact our local office at 1.877.363.3437 or toll-free at 310.DEBT (310.3328).
Our team of Licensed Insolvency Trustees will help you
explore the debt relief options available to you and
together we will find the solution that best fits your
situation. Set up your FREE, no obligation consultation
MNP is committed to protecting your
privacy. We promise to keep all of the information you share
with us confidential.
*310-DEBT doesn’t operate in MB, NW ON and QC.
Contact a Trustee
Find a local Office