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Marie Alcober
Updated Oct 31, 2025
At the end of 2024, the amount of money Canadians owed on their credit cards increased by 9% compared to the year before.
That’s according to a report by TransUnion, which also suggested that this growth in credit card balances was driven by higher revolving debt — an indication that more Canadians were paying down a smaller portion of their monthly balance or just making the minimum required payment.
And it’s not just credit card debt. Nearly three in 10 Canadians (29%) planning to retire in the next 12 months expect to continue making mortgage payments into retirement, based on a new survey by Royal LePage.
If you’re caught in a debt cycle, here are three simple ways that can help you crush your balance to $0.
Consolidate your debt
Managing multiple debts can feel like an uphill battle, but debt consolidation can help you streamline your finances and put you on the fast track to becoming debt-free.
By merging your debts into one single personal loan — often with a reduced interest rate — you can save on interest charges while paying one predictable payment each month.
The process of finding the right loan is fast and easy with Loans Canada.
You can shop for the most competitive interest rates on personal and debt consolidation loans, since Loans Canada specializes in comparing rates offered by various lenders.
You don’t need a minimum credit score or annual income to receive personalized loan offers.
If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to clear a significant portion of your debt.
You can get a free consultation with a debt relief expert who can work with you to help clear your debts and rehabilitate your credit with a plan tailored to your needs.
If your debt is only a couple of thousand dollars and you want to clear it as soon as possible, consider looking into Mogo.
You can get a line of credit of up to $3,500, and the online pre-approval takes only 3 minutes. If you fill out their pre-approval form, you have no obligation to sign up for a loan, and it won't hurt your credit score.
The entire process — from pre-approval to funding — is completed online in minutes, so there’s no waiting days to be matched with a lender.
You can easily chat with specialists on the app, and you'll get alerts to remind you of your payments.
Make a budget
Debt happens when you spend more than you earn. If you can’t earn more, you have to spend less. The easiest way to do this is to make a budget.
Your budget can be simple, outlining your total monthly income, expected expenses and variable expenses. When you subtract your expenses from your income, you’ll know how much you have left over for savings, leisure and repaying debt.
Budgeting can be a challenge when trying to track multiple accounts and factor in daily expenses simultaneously.
That’s where Monarch Money's expense tracking system comes in. The all-in-one money app seamlessly connects all your accounts in one place, giving you a clear view of where you're overspending. It also helps you monitor your expenses and payments in real time.
Whether you're looking to save, buy a car, pay off debt, or simply control your spending, Monarch Money brings together everything you need to manage your finances effectively. Plus, you can get 50% off your first year with code WISE50.
Use a transfer balance card
A balance transfer moves debt from one or more credit cards onto a new card with a low or zero interest promotional period. The keyword here is promotional.
Once that period ends, your interest rate jumps — quite often to double-digits. So the goal is simple: Use the 0% interest promotional period to pay off as much debt as possible.
Finding the right transfer balance credit card is important. Some cards offer 0% interest for a set period, while others offer low promotional rates with other perks.
If you consistently carry a balance on your credit card, you could opt to pay an annual fee in exchange for a lower interest rate overall.
The Scotiabank Value® Visa Card is perfect for this scenario. It offers a low intro rate of 0.99% for 9 months† — and the $29 annual fee is waived for the first year.
After the intro period, you can take advantage of the card’s lower-than-average interest rate for everyday purchases. A balance transfer card isn’t a reset button. It’s a tool — and like any tool, it only works if you use it properly.
More money moves to make right now
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Wealthsimple
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Marie Alcober
Content Strategist
Marie Alcober is a content strategist at Moneywise. She has worked as an editor, writer and producer for various media outlets, including MSN Canada, BNN Bloomberg, News UK, CBC Arts and Corus Entertainment.
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