The Fastest Way to Pay Off Credit Card Debt in Canada

At 20% interest, a $10,000 card balance costs about $167 a month in interest alone. Paying only the minimum can take decades. Here's the order that works.

Step 1: Stop the balance growing

Take the card out of your wallet and remove it from online stores. Switch everyday spending to debit until the balance is gone.

Step 2: List every debt

Write down each balance, rate and minimum payment. Our debt payoff planner does the math for you.

Step 3: Pick a method

• Avalanche — extra money goes to the highest rate first. Cheapest overall. (debt avalanche)
• Snowball — extra money goes to the smallest balance first. Quicker wins, slightly more interest.

Either beats paying minimums. Choose the one you'll stick with.

Step 4: Lower the rate

1. Call your card issuer and ask for a lower rate. It costs nothing to ask.
2. Balance transfer card — some offer a low promotional rate for 6–12 months, usually with a transfer fee of a few percent. Only worth it if you can clear most of it before the promo ends.
3. Debt consolidation loan — replaces several card balances with one fixed payment, often at a lower rate. Compare using the loan calculator and check lenders that offer debt consolidation.
4. HELOC — the lowest rate, but it puts your home on the line. See HELOC payments explained.

Step 5: If the numbers don't work

If your payments are more than you can cover, a non-profit credit counsellor can set up a debt management plan. A consumer proposal through a Licensed Insolvency Trustee is a legal option that can reduce what you owe. The Financial Consumer Agency of Canada has free guides on both.

Protect your credit while you pay

Keep paying at least the minimum on every card each month. Late payments stay on your report about six years. See how to build credit.