By Jasmin Brown - Licensed Insolvency Trustee

BDO First Call Debt Solutions

One Financial Resolution to Make Right Now: Tackle Your Credit Card Debt

Sep 17, 2019 | 9:07 AM

September feels like a new year for many of us.

It’s a month full of changes – families have returned to a more predictable routine, younger children and university students are back in school, and the weather is beginning to cool off.

Even as adults, we have that feeling of a fresh start or turning over a new leaf when September comes along.

That’s why September is an ideal time to make a financial resolution or two for the remainder of the year. Setting a financial goal at this time of year gives you the opportunity to get a head start on your 2020 goals, or to revisit a promise you made to yourself back in January. You might be surprised at how much progress you can make between now and the end of the year.

Resolve to tackle your credit card debt

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With the ease of digital payments and the abundance of online shopping, it can be tempting to accept that credit card debt will always be a part of your life.

However, decreasing your reliance on credit cards can increase your ability to afford everyday essentials and save for the future.

If you have resolved to erase your credit card balances, start by making a list of what you owe. Are you carrying credit card balances month after month? Did your balances grow over the past few months due to summer spending? (About three-in-10 Canadians were worried about summer spending, according to a May 2019 survey from CPA Canada.)

Perhaps the main benefit of being credit card debt-free is avoiding all those monthly interest charges. Paying off your credit card balances is also a good strategy to help you prepare for leaner times ahead.

You may have noticed predictions in the news recently about a possible recession on the horizon. One of the best ways to survive a tough economy is to pay off high-interest debt before the storm arrives. When money is tight there can be less room in your budget for debt repayment, so lingering credit card balances can quickly become expensive.

Look for a debt repayment plan that works for you and your budget. You can find a simple explanation of debt snowball vs debt avalanche on the BDO First Call Debt Solutions website. Or visit the Government of Canada’s site for debt management tips from the Financial Consumer Agency of Canada.

Finally, if you’re having a tough time tackling credit card debt on your own, speak to a Licensed Insolvency Trustee (LIT) for advice and assistance. The role of an LIT is to assess your financial situation, make sure you understand all available debt solutions and help you choose the one that is right for you.

Have you made a September financial resolution? Share it with us on Twitter or Facebook.