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Tips on Reducing Credit Card Debt After Summer


Woman sitting on a chair happily managing her credit card debt thanks to D. Thode & Associates Inc.

Summer is a time of fun and relaxation, with lots to do outdoors and so many places to visit. It’s common to go over your budget and charge more on your credit card. Often, trips over the weekend, summer camps for kids, or just daily living expenses can result in higher credit card balances than expected by the end of the season. 


It’s ok. 


Recognize your budget and get a handle on your accumulated credit card debt with some practical tips from D. Thode & Associates, Licensed Insolvency Trustees. 



Wallet with credit cards showing and FAQ from D. Thode & Associates Inc. that asks - What is the most effective way to pay off credit card debt?


1. Evaluate Your Financial Situation


The fall season is a good time to assess your finances. Look at your current balances on your credit cards and their interest rates, then calculate how long it will take to pay off your debt with minimum payments. From there, a budget review will be performed to establish how much beyond minimum payments can be designated monthly towards repayment of debts.


2. Avoid Further Credit Card Use


The best way to pay off your debts is by not using any more credit cards until you have things under control. If you find yourself in a position where you need to pay bills or buy groceries using a credit card shortly after making a payment, then consider contacting a Licensed Insolvency Trustee for advice.


3. Focus on Your Credit Card Payments


If there’s extra money available for debt reduction, use it wisely.


  • Single Card Debt: If all your debts come from one card, make sure that particular card is paid off first.

  • Multiple Cards: If your debts come from more than one card, pay only the minimum due on all others, then choose where else to allocate extra funds.


When it comes to allocating extra funds, two popular strategies can make a significant difference in how quickly and efficiently you reduce your debt. 


  • Highest Interest First: Start by paying off the high-interest card since this reduces how much interest you are paying.

  • Smallest Balance First: Pay off the shortest balance first to quickly eliminate one debt and gain a sense of accomplishment. 


By choosing the right strategy, you can either minimize the interest paid over time or achieve smaller victories that motivate you to continue reducing your debt.


4. Plan Ahead For Future Expenses


Create a budget that takes into account extra costs throughout the year like holidays, celebrations, and summer fun. By doing this you can steer clear of debt relapse and be better prepared for future financial challenges.


5. Transfer Balance(s) to a Low-Interest Card


If you qualify, consider a 0% APR balance transfer card. This can give you a period of no interest to focus on paying down the principal. Be mindful of balance transfer fees, and aim to pay off the balance before the promotional period ends.


Man cutting up his credit card after paying off all his credit card debt using a plan developed by D. Thode & Associates Inc., Licensed Insolvency Trustee.

Reducing credit card debt after the fun of summer splurging requires a strategic approach to manage and pay down your balance effectively. Using these tips in collaboration will help you get your finances back on track. If your debt feels overwhelming, a Licensed Insolvency Trustee can provide guidance and help develop a manageable plan for long-term financial freedom.


If you live in the Interior or Lower Mainland of B.C. and are struggling with debt, contact D. Thode & Associates Inc., Licensed Insolvency Trustees. Book your FREE consultation, and we’ll help you understand your options. We want to help you become Debt-Free!




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