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Top 5 Tips To Pay Your Credit Card Debt


Amongst the best line of credit, a credit card is one of the best ones that provides you a revolving credit that you can use for any purchases such as:

·         Grocery Payments

·         Cell phone Bills

·         Electronics and Appliances

·         Any other materialistic thing

According to a poll, nearly 43% of credit card users in Canada have pending credit card debt. Amongst them, the majority of people believe they can pay their debt in under six months, while others require more than six months to come out of this debt spiral.

Paying off your credit card dues or any other debt is essential for financial stability, credit history, and rating.

Delaying your bills will hamper your financial growth and your credit score, which is necessary for any loan or mortgage you might need in the future.

Here are five tips to pay your credit card debt.

1. Payment Automation.

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One of the simple steps that you can take to get out of the debt spiral is automating your payments.

You have three options for payment automation:

1.      Pay the minimum amount

2.      Pay the full amount

3.      Pay the amount according to your choice

In Canada, most credit card providers allow you to automate your payments, so you can choose this for paying your debt.

·         Automating your payment will make sure that you don’t ever miss a payment, as the payment you have chosen will withdraw automatically.

·         All credit card providers charge a late fee if their debt is not repaid, leading to a high interest later.

·         You cannot fathom the damage to your credit score if you skip a payment.

Automating your payments will pay your dues at the right time so your credit score will not be hampered, and you will get saved from paying the late fee dues.

2. Choosing To Pay More Than The Minimum Payment.

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A credit card’s minimum payment is the minimum amount you must pay to avoid extra fees and keep your account running smoothly.

·         A minimum payment sounds appealing but will keep you in a debt spiral longer.

For example, if Josh has a $5000 credit card balance that he can use and he pays only the minimum payment, it will take at least 21 years to clear the remaining balance.

This time period of 21 years can be decreased drastically by paying only $50 more than the minimum payment that Josh usually makes.

It is highly unrealistic that you will be able to make all credit card balance payments as only a few can afford it, but you should always aim to pay as much as you can, so you can come out of this debt spiral faster.

3. Consider Using A Low-Interest Credit Card.

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You can always consider opting for a low-interest credit card if you suffer from carrying a credit card balance each time.

·   Opting for a low-interest credit card will allow you to pay less interest than if you opt for a high-interest credit card.

·         Having a low-interest credit card will have a positive impact on your budget as you will pay less interest than usual high-interest credit cards.

There are also some low-interest and balance transfer credit cards that give you the benefit of transferring your balance from an existing card.

·         Sometimes, this comes with an offer, such as paying 0% interest for a year on a balance transfer that you can use to significantly decrease your balance.

·         After this offer ends, you have to carry on with your regular interest rate if the balance remains.

You must also note that balance transfers requires a one-time transfer fee.

4. Choosing A Line Of Credit.

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If you have an option to choose a line of credit, you should opt for it as it can help you consolidate a debt, as they typically have a lower interest rate than a credit card.

·         If a line of credit gets approved, you can use that to repay all your existing credit card debt. You’ll be left with only a single monthly payment.

·         However, choosing a line of credit is risky as it is still a loan. If you miss any payment, you will accumulate more interest leading to a debt spiral.

·         Knowing proper management of a line of credit may help you clear your debt as it has a low interest.

5. Using The Week Rule.

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Most people tend to pay their credit card debt on the last day of the month. Paying your credit card due at the end of each month will lead the debt to pile up which will strain your pocket.

·         Cutting down the time frame of the bill payment to weekly payments is one way to make your payments easier.

·         Using the week rule will slice a huge bill into small bills that will be easier than paying a humongous debt. It will also strengthen your mental state.

Having a stable mindset will help you repay your debt faster and efficiently.


There are no shortcuts to paying your debt faster and easier. However, there are some tips and tricks that you can use to manage your debt more efficiently to speed up the process of repayment.

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