Credit Card Debt

We Can Help!

Are you only making minimum payments or not making payments at all on your credit cards? Is the balance on your credit cards increasing each month? Don’t worry we can help!

These days it is easier than ever to get multiple credit cards, from walking into your favorite retail store to being offered a new card or increased credit limit at your local bank branch to applying online. Credit card debt can easily spiral out of control and take over your life if left unaddressed, and credit card companies are making their money on unpaid balances. However, if you are struggling to make your credit card payments or are unable to build momentum and pay down your debt, you do have options.

What primarily gets people into trouble with their credit cards?

Overspending: The overuse of credit and living on credit is a fast track to financial distress. The more you spend on credit, the more you are required to pay back each month and the less you have in your pocket at the end of the month. Unfortunately, credit card debt is a slippery slope and it is all too easy to fall into the pattern of spending for today and being unprepared for the unexpected expenses or financial emergencies that may come tomorrow.

High interest: Accumulating high-interest debt means that future interest and required minimum payments reduce your future cash flow and spending power. Even though credit cards were helpful during that emergency or to pay for things when cash was tight, it can be a daunting task to pay them off.

Paying minimum balances: Getting minimum balance payments each month is how credit card companies make their money. Most credit card companies charge compound interest daily. As a result, every single day the interest and payment you owe on your credit card grows because the interest is compounding on top of the balance and the old interest. There is a reason the minimum payment is such a small percentage of your balance. Credit card companies want you to take your time paying them off, but do not fall into that trap!

Can a Trustee help me deal with my credit card debt?

Yes, we can help. Under the Bankruptcy and Insolvency Act, filing a consumer proposal can provide relief from the struggle to pay all of your debts because it creates a new legal contract between you and your creditors. Filing a consumer proposal will also stop the interest on your debts. A proposal may allow you to compromise the amount of debt you owe and provide you with an extension of time to pay the debt. Once accepted, a consumer proposal is binding on all of your unsecured creditors, including credit cards, and you make one monthly payment to the Licensed Insolvency Trustee. In this way, a consumer proposal can help alleviate the financial stress caused by mounting credit card debt.

You may also wish to explore another option under the Bankruptcy and Insolvency Act. A bankruptcy filing can provide you with relief from the struggle to pay all of your debts because it immediately terminates the obligation to pay most creditors.

As an alternative to struggling with your minimum payments and credit card debt, a Licensed Insolvency Trustee will apply experience and knowledge of bankruptcy and insolvency legislation to assess your situation and provide you with options to begin a fresh start.

If you are unsure how to move forward and struggling with mounting credit card debt, call us today. Our associates will listen to you, review options with you, and explain to you how we can help you get out from under the burden of debt.

Let’s start solving your problems today!

Request a Free Consultation