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Credit Card Debt

Fact Checked

Credit card debt.

Credit card debt is the most common type of unsecured debt in Canada.

Thousands of Canadians have turned to the help of credit card companies, and often several credit cards, to cover the cost of day-to-day life as well as unexpected payments.

While credit cards can play an important part in a financial emergency it’s important to stay on top of what you owe to avoid problem debt.

Does a credit card affect my credit score?

Having a credit card itself doesn’t affect your credit score but how much you borrow and how well you pay off your credit card, or credit cards, every month will reflect on your credit score.

Your credit card company will share details of your account activity with credit reference agencies. This allows them to update your credit score.

This then allows other lenders to determine your ‘creditworthiness and decide how much of a risk it is to let you borrow money from them.

It’ll also be noted on your credit report. This shows your credit history, including how much you owe, how many payments you’ve made, if you’ve missed any payments and details of your credit limit.

How credit card debt can affect everyday life

Credit card debt affects everyday life, not just your bank balance. Whether you’re struggling with one credit card or have borrowed from a number of credit card issuers, it’s important not to ignore how much money you owe.

Mental Health

Living with debt can, understandably, have a serious impact on your mental health. In fact, according to industry statistics, the likelihood of having a mental health issue is three times higher amongst people living wit debt, with a recent Forbes article suggesting that financial stress can cause similar feelings to PTSD. Financial distress can also be an isolating experience, with many people not knowing where to turn for support and internalizing feelings of stress and failure.

Social Life

This probably seems obvious but living with credit card debt can have implications on your social life. Hiding debts from friends will mean that won’t give your finances a second thought. Invitations to dinner or to grab after work drinks can often seem too tempting to give up but struggling with debt can make it hard to keep up with.

Happiness

Money can’t buy happiness but there is a direct link with financial security. Living a life worrying about how you’re going to make your next bill payment can be daunting and stress-inducing and lead to anxiety, depression and a host of other psychological problems.

Worried about credit card debt?

If you’re worried about credit cards, our debt experts can help you become debt-free. They can offer advice about the best way to deal with all your credit cards and outstanding debt to help you regain control of your finances. Call 877-375-6558 to find support today.

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Frequently Asked Questions

What information do you need from me on the call?

We’ll ask you about your income and outgoings, as well as who you owe money to, so that we can get the full picture, and give you the best possible advice to find a solution that’ll save you money, and make life much easier!

What if I don’t have all the information you need?

It’s okay, we can still help. If you’re not sure of all the people you owe money to, or you haven’t got an exact amount for each payment, we can discuss this, or suggest steps you can take to get us the information while you’re on the call.

How much will it cost me to get advice from you?

You won’t pay anything for the advice our debt specialists give you on the call. If you do qualify for a debt solution, the fees will be taken from the monthly amount you pay to your creditors. Everything’s covered, and we don’t take any money upfront. The last thing we want is you getting further into debt.

How do you know which solution is best for me?

Our debt experts will take it step by step, so we can understand your concerns, and which of the available solutions would be the right fit for your situation. We’ll only proceed if you’re completely comfortable to go ahead.

I’m a bit nervous about speaking with someone about my debts

That’s completely understandable, but be reassured, we’ll do everything we can to put you at ease. We don’t use complicated jargon, and we treat every customer as an individual, taking their unique circumstances into consideration before sharing our impartial advice. There’s nothing we haven’t dealt with; we speak with hundreds of customers every single day. We’re here to have an open and honest chat and try to build a picture to see what help and support we can give you.

Other types of debt

How we can help you with your debt

You’re on your way to resolving your debt problems, this is what will happen next.

Fill out the form and arrange a call back with one of our debt experts.

We will then run through all of the options available to you and advise you on which is the best option for you.

We will then help you put the debt solution in place that will help you get back on track.

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