A recent report from Equifax showed that half of Canadians improved their credit scores in 2020. Credit card spending fell which led to lower balances from paying down debt.
Consider a balance transfer credit card
A ballooning credit card balance can be daunting for consumers. Sometimes, it can seem like an insurmountable hill. For those in this predicament, you may want to explore a balance transfer credit card.
This allows you to switch from a credit card with high-interest payments to one with low or even no interest in the opening months. This can help you put a significant debt in your balance and pave the way to zero debt.
This is another option for those struggling with credit card and other forms of debt. Some lenders can offer you the chance to pursue a debt consolidation loan at a lower interest rate. This is another method to escape the potential treadmill of carrying over a high balance on your credit card.
Many Canadians may find it a challenge to secure financing. In this instance, it may be time to construct a strict budget and stick to it. This is an arduous but often rewarding process that will lead to lower debt going forward.