Christmas was magic! Now, how do I pay the debt racked up on my credit cards?

Monday January 15th, 2018

Christmas was magic! Now, how do I pay the debt racked up on my credit cards?

It’s January, cold and dark, and here you are, faced with a pile of debts and credit card bills that reflect your over-spending on holiday celebrations! You’ve received one or more bills? Can you pay them all off? If this is the case, congratulations! If not, take a few minutes to do the following exercise. List all your debts and their respective interest rates (car, house, cottage, line of credit, credit cards, RRSP).

Debts

Balance

Interest Rate

Minimum Payment

Ex.: TD Visa card

$20,000

18%

$300

       
       

Did you know that a $20,000 credit card debt at 18% interest will cost you a $1,000 a month if you want to pay it off in two years? Worst is if you make only the minimum payment (around $300), it will take you 30 years to pay it off completely.

The purpose of this exercise is to enable you to find out which debts are the most costly and how you can finance them at a lower cost. One available solution is to refinance your property with a mortgage with a current interest rate between 2.21% and 3.74%*.

The second exercise is to contact us so we can take a look, free of charge, to see if this solution is a realistic option in your situation. 

*Rates available on January 15th 2018