If you have zero credit card debt, move along. (Also, kudos to you.) But if you do have credit card debt, whether it’s massive or small, the amount weighs on you. In honour of Credit Card Reduction Day on March 21, we spoke with John Shmuel, managing editor and senior writer of LowestRates.ca and Alyssa Furtado, CEO of Ratehub.ca to get the low down on how to cut down. If you want that money-sucking monkey off your back, these are the steps you can take to eliminate your debt, and how you can take action so it doesn’t happen again.

Getty Images
1 / 18
Commit to cutting your spending
"For some people, spending is an impulsive habit," so in order to curb that spending, Furtado suggests focusing on only buying things that are needed, not the things that are merely wants. Here's some great tips for curbing your online shopping addiction, for starters.
For inspiration, Furtado recommends Cait Flanders' book, The Year of Less, which chronicles the author's vow to quit shopping for a year to pay off $30,000 in consumer debt.
For inspiration, Furtado recommends Cait Flanders' book, The Year of Less, which chronicles the author's vow to quit shopping for a year to pay off $30,000 in consumer debt.

Getty Images
2 / 18
Make a budget
"There's no 'get quick rich' scheme with paying off credit card debt," says Shmuel. So if you're putting all your hopes on winning the lottery, think again. That means you need to get a budget going. "Allocate as much as you can every month to paying off your bill, because credit card interest rates are among the highest of all financial products."
YOU MIGHT ALSO LIKE:the 10 best cash back credit cards in Canada for 2019
YOU MIGHT ALSO LIKE:the 10 best cash back credit cards in Canada for 2019

Getty Images
3 / 18
Get another job
Taking on additional sources of income will get you to your goals quicker, says Furtado. Anything you can do on the side, be it freelancing, tutoring, babysitting, working at a clothing store, whatever, it all adds up. Every little bit helps.
YOU MIGHT ALSO LIKE: jobs with the best starting salaries in Canada
YOU MIGHT ALSO LIKE: jobs with the best starting salaries in Canada

Getty Images
4 / 18
Use some of your savings
"If you have any savings set aside, you may want to use part of them to pay down your debt, depending on your circumstances," suggests Furtado. Sure, you may not want to dip into this but it can save you in the long run.
YOU MIGHT ALSO LIKE: This is how she does it: Vancouver millennial became a homeowner before 25.
YOU MIGHT ALSO LIKE: This is how she does it: Vancouver millennial became a homeowner before 25.

Getty Images
5 / 18
Eliminate the things you don’t need
"You'd be surprised at how much money you're spending on things you don't even use," says Shmuel. That gym membership, the magazine subscription, the clothes you never wear, by paying more attention to where your money goes will change how you spend.

Getty Images
6 / 18
Use the Debt Avalanche method
"Do an inventory of all your credit cards and figure out which ones have the highest interest rates," advises Furtado. "Then put as much money as possible towards those cards to pay them off as quickly as possible, while just paying the minimums on the other cards." By reducing the amount of interest will clear your debts off as quickly as possible while paying the least amount of interest.
YOU MIGHT ALSO LIKE: finance lessons your parents should have taught you (but expect you to know anyway).
YOU MIGHT ALSO LIKE: finance lessons your parents should have taught you (but expect you to know anyway).

Getty Images
7 / 18
Use the Debt Snowball method
This is the opposite of the Debt Avalanche method, as you're paying off your card with the lowest interest first. "You get a sense of achievement and become more motivated to pay off your other cards," says Furtado. "Paying off one credit card can be really empowering, so this may be the right method for people who are trying to figure out where to start."
YOU MIGHT ALSO LIKE: the stupidest things we spend our money on.
YOU MIGHT ALSO LIKE: the stupidest things we spend our money on.

Getty Images
8 / 18
Use a balance transfer card
"Balance transfer credit cards can help you consolidate your debt from several cards onto one card, which can make it easier to pay off and help you avoid paying higher interest rates on some of your cards," says Furtado. She does warn that if you do get a balance transfer credit card, don't use that card to make additional purchases as the low promotional rate only applies to balances that you transfer. The whole point is to get out of debt, not pile on more.

Getty Images
9 / 18
Use a low-interest card for your everyday spending
If you're going to continue using your credit card, finding one with low interest for everyday purchases "can still be helpful if you carry a balance."
RELATED: Things Canadian pay less for.
RELATED: Things Canadian pay less for.

Getty Images
10 / 18
Choose the right financial products
While making your own coffee instead of stopping at a shop on the way to work will save you money, it's the big things that are messing with your finances. "So many people pay a monthly fee for their chequing accounts," says Shmuel, who suggests to switch to a free chequing account.
As for insurance, he recommends using comparison websites to research prices. "Your quoted rate can differ significantly from provider to provider.
Banks and insurance companies charge all kinds of fees that you can rid yourself of if you head online and compare your options."
As for insurance, he recommends using comparison websites to research prices. "Your quoted rate can differ significantly from provider to provider.
Banks and insurance companies charge all kinds of fees that you can rid yourself of if you head online and compare your options."

Getty Images
11 / 18
Don’t limit yourself to one place
You don't need to go to one place to solve all your debt issues. "There are so many online tools that allow you to quickly aggregate financial products, compare interest rates and offers," urges Shmuel. Find the ones that work best for you.
RELATED: 11 habits of successful people.
RELATED: 11 habits of successful people.

Getty Images
12 / 18
Work with a financial planner
If you require direction and don't think you can stick to a plan all on your own, seek out someone "who can provide advice and guidance on paying back your debt," recommends Furtado. It's their job to help you with your money (and why they get paid the big bucks). Why wouldn't you turn to them?

Getty Images
13 / 18
Steer clear of predatory lenders
"Being in debt makes you vulnerable, is stressful, it can lead to poor decisions and people can take advantage of you," cautions Shmuel. "Stay away from financial products that offer interest rates that will worsen, rather than improve your situation."

Getty Images
14 / 18
Create an emergency fund
It can be tempting to use your credit cards when unforeseen expenses arrive, be it home renovations or car repairs. "Personal finance experts often recommend that you keep three to six months' worth of your salary available in your emergency fund," says Furtado. "The exact amount in your emergency fund is up to you; the important thing is to have enough in there to keep you afloat." And not have to turn to your credit cards.

Getty Images
15 / 18
Set up automatic savings
"Prioritize your savings by creating an automatic deduction or transfer into a high-interest savings account," encourages Furtado. So every time you receive your paycheque, the money you've allocated is gone, as is that temptation to spend it. The best part? "You never even have to think about it."

Getty Images
16 / 18
Avoid lifestyle inflation
Just because you get a promotion or a higher paying job does not mean you should be spending more. "There's nothing wrong with treating ourselves, but if you start spending by getting a bigger house or buying a new car, you reduce your ability to save any of your new income," cautions Furtado. "Instead, put away that money towards your debt or your savings goals. Financial freedom is one of the best gifts you could ever give yourself."

Getty Images
17 / 18
Don’t ignore your debt
"Credit card companies can structure payments in a way that make it seem manageable, but rope you into paying off that debt for a long time," says Shmuel. "If you have credit card debt, don't just pay off the minimum balance. Work toward paying off a meaningful portion of the principal amount and the interest rate every month."

Getty Images
18 / 18
Invest in yourself
"Remember, the earlier you start saving, the more you'll have when you retire," says Furtado. "Compound interest works against you when you owe credit card companies money, but it can work in your favour when you invest it in a high-interest savings account, or in other products like GICs, TFSAs, or RRSPs." So once you've got your debts eliminated or significantly decreased, don't go back to spending; instead, invest! It's your future.
YOU MIGHT ALSO LIKE: why women need to save more than men for retirement.
YOU MIGHT ALSO LIKE: why women need to save more than men for retirement.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT