Credit Card Debt-Help & Advice

Credit card debt is the most common unsecured debt type in Canada, however, problems can arise when people turn to the plastic to cover the cost of day-to-day life as well as unexpected payments.
Credit Card Debt Canada
Share

Overview

There is no denying that credit cards come with a wealth of benefits. No matter how prepared you think you might be, the reality is life is unpredictable and there will come a time when your finances won’t stretch to cover unexpected expenses such as emergency home repairs.

However, if you find yourself reaching for the plastic to manage your finances month to month that credit card debt can become unmanageable.

According to industry figures only 25% of Canadians pay off their credit card debt in full, with the rest accruing interest on the remaining balance which could amount to thousands of dollars every year.

Overview

According to industry figures only 25% of Canadians pay off their credit card debt in full

Warning signs

Credit cards understandably come with a wealth of benefits, almost acting as a financial safety net at times when unexpected payments pop up. However, it can be all too easy to become complacent about repaying what is owed to credit cards meaning and that’s when debt can start to wrack-up. Knowing the warning signs to look out for can help stop bills from becoming unmanageable and saving you from the stress of dealing with financial insecurity.

  • Not paying credit cards in full: Only making the minimum payment on your bill will mean that you will accrue interest on the balance you carry over each month which can make managing payments much more difficult.
  • Reaching your credit limit: Is your credit card nearing its maximum limit? Reaching the credit limit on one or more of your credit cards is a sign that your debt may be out of hand.
  • Paying one credit card with another: Using a balance transfer from one credit card to clear another is a slippery slope and can be one of the clearest signs that your credit card debt has become unmanageable.
  • Unsure of interest rates: Understanding the interest rates on all credit cards is vital if you are to manage regular payments and clear the debt you owe.
  • Using advanced payments: Another sign you could be struggling with credit card debt is if you’re using advanced the advanced payment checks often offered with a range of credit cards.
  • Budget doesn’t stretch: If you find yourself regularly using your credit card to manage day-to-day finances it could be a sign that you’re living beyond your means each month.
  • You’re missing payments: The minute you miss a payment on your credit card or other debt is a sign that you’re struggling with debt and when you can’t handle the amount of money you owe.

How credit card debt can affect everyday life

Living with credit card debt can have an impact on everyday life, not just your bank balance. Here we shine a light on a number of ways living with credit card debt can affect day-to-day living.

  1. Mental Health

Living with debt can, understandably, have a serious impact on your mental health. In fact, according to industry statistics the likelihood of having a mental health issue is three times higher amongst people living wit debt, with a recent Forbes article suggesting that financial stress can cause similar feelings to PTSD. Financial distress can also be an isolating experience, with many people not knowing where to turn for support and internalizing feelings of stress and failure.

  1. Social Life

This probably seems obvious but living with credit card debt can have implications on your social life. Hiding debts from friends will mean that won’t give your finances a second thought. Invitations to dinner or to grab after work drinks can often seem too tempting to give up but struggling with debt can make it hard to keep up with.

  1. Happiness

Money can’t buy happiness but there is a direct link with financial security. Living a life worrying about how you’re going to make your next bill payment can be daunting and stress-inducing and lead to anxiety, depression and a host of other psychological problems.

  1. Relationships

Finances can be the leading cause of stress in a relationship. Whether it’s your relationship with your spouse, partner, family or friend money troubles can cause a strain with tempers often at breaking point when times look particularly bleak.

  1. Opportunities

Living with unmanageable debt can have a negative impact on your credit score which can obviously have an impact on your ability to borrow further credit but did you know it can also prevent you from certain job and apartment opportunities?

How credit card debt can affect everyday life

Living with credit card debt can have an impact on everyday life, not just your bank balance.

How we can help you with your debt?

You’re on your way to resolving your debt problems, this is what will happen next.

Fill out the form
Fill out the form and arrange a call back with one of our debt advisors.
Fill out the form
We will then run through all of the options available to you and advise you on which is the best option for you
Fill out the form
We will then help you put the debt solution in place that will help you get back on track

Why choose us

We’ve helped thousands of people get out of debt

helped-peoples

Expert team of debt specialists here to help you

customer-exp-1

Confidential advice on all debt matters

office-locations

Convenient offices staffed with friendly local advisors