Holiday Recovery

How can I pay down my debt sooner?

Christmas has come and gone but the credit card statement has arrived. If you cannot pay off the balance in full, here are a few things to consider:

Make a list of all your debts (credit cards, credit lines, vehicle and mortgage loans), and take note of each interest rate. Pay off the highest interest rate card first. Make minimum payments on lower rate balances and use the extra cash to pay off the high interest balances.

You need a credit card for emergencies and online purchases or bookings, but consider only keeping one card. You must be disciplined when making future credit purchases so that you don’t fall into the same dilemma again.

Make (and use) a budget because you will be able to understand where your money is going and where you can afford to make changes. You should always plan for the unexpected.

A consolidation loan could also help. The interest rate would be lower and allow you to pay off the credit card principal faster. You should be able to save for future purchases with the lower payment of the consolidation loan.

At Cape Breton Credit Union, we are concerned with your overall financial fitness. We utilize a checklist to help us assess your unique situation and develop a plan to put you on the road to achieving all your financial goals.

Drop in and talk to one of our friendly loan officers to discuss your options. New members are welcome and our Prince Street branch is open until 7pm on Thursdays.
 

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