Follow the recommendations below to get out of debt:

  • Stop using credit cards except for emergencies. You don’t need more than one or two credit cards.
  • Draw up a list of all your debt and loans and then decide what needs to be paid off first. You should usually focus on credit cards (department store cards) because they have a higher interest rate.
  • Do you have any assets you could liquefy?
  • Make the minimum monthly payment on each of your credit cards and double the payment on the card with the highest interest rate. That way you can pay off your most expensive debt first.
  • Continue with this payment strategy (doubling the minimum payment) until all of your cards have been paid off.
  • If you have trouble meeting your monthly obligations, talk to your creditors to see if you can make other arrangements like reducing your interest or extending your payment period.

Combining your debt with one creditor could be beneficial:

  • It will be easier to monitor.
  • You could potentially get a better interest rate.
  • You might be able to extend your payment period or reduce your monthly payment.
  • Once you’ve paid off a credit card, cut it up and return it to the issuer.
  • In this step, you have to work hard to reduce your expenses. At the same time, don’t forget options that may help you increase your income. It’s hard to spend money when you’re working.
  • If you can’t get your debt under control yourself, talk to a credit advisor. There are a number of non-profits in your area that can help (e.g., ACEF Centre-Nord). An experienced advisor will sit down with you, go over your situation and options and help you develop an action plan.
  • Make sure you understand how you got into trouble and take steps to ensure it doesn’t happen again.