As the necessities of life are getting dearer, an increasingly large number of Canadians are resorting to credit cards for their daily needs. With the ensnaring impact of the recession, not many people are having enough cash with which they can make ends meet and are therefore turning to their plastics. The Canadians are recently paying their rent, utility bills and food costs with the help of their credit cards. Though they’re getting an immediate relief, they’re gradually being caught in the vicious trap of consumer credit card debt. Even worse, if Canadians are even late with their payments by a day, they’re subject to an outrageously higher interest rate. It is not that the credit card debt cannot be dealt with as there are credit card debt consolidation options that can be resorted to by the debtor, but it’s always better to stay safe than sorry.
Some shocking credit card debt statistics show that the number of Canadians with bills more than 90 days due have increased by 55% from September, 2009 to September, 2010. Among all the major cities in the country, Toronto is seen to have the highest delinquency rate at 3.24% in the month of October, 2010. The Canadians have charged an average of $287 billion on their multiple credit cards and as per the Retail Council of Canada, an amount of $4.5 billion in a year is required as merchant fees to run this entire system. The Equifax, Canada says that the total credit card debt level in Canada has hit an eye-popping $80 billion in September, 2010, up from $77 billion during the same time in 2009.
How to tackle debt in Canada – Knowing your options
Though the financial meltdown has affected all sections of the world, the Canadians seem to pile on debt just as they used to previously. The Great Recession may not have a tough impact on the Canadians, as they may have on the Americans, but still everyone should take the certain steps that can eliminate their debt burden.
- Create a monetary plan: Irrespective of the place you live in, everyone needs to create a monetary plan and follow it in order to let go of their high interest debts. Without a plan, no one can work towards his goal and therefore you too should have a budget that can assist you in tracking your income, expenses and monitor your savings.
- Put your credit cards on hold: One of the best steps that you can take on your own to let go of your credit card debt is by putting your credit cards on hold. Restrict the usage of the credit cards so that you can stop yourself from accumulating further debt. Use cash instead of credit so that you can at least stop shopping when you exhaust cash.
- Pay off high interest debt first: Debt avalanche method is a wise way of dealing with your credit card debt. Pick out the account with the highest interest rate and direct all your financial sources towards clearing off that debt amount while making the minimum monthly payments on your other cards. After you clear off that debt, pick the one with the second-highest rate and follow the same method.
As Canada is gradually turning into a cashless society, Ottawa is closely scrutinizing the credit card industry in order to protect the consumers. Even after following the above mentioned steps, if you cannot control your debts, you must opt for credit card debt consolidation options to eliminate your high interest debts.
Related posts:
- National Bank of Canada Credit Card Payment Online
- Caisses Desjardins Credit Card Payment Online
- How to Manage Your Credit Card
- Canada Tire Options Mastercard Credit Card Payment
- Canada Credit Cards
