As a credit card holder and regular user, you should be extra vigilant about your finances so that your debt doesn’t pile up. Once your debt starts accumulating, it can be extremely difficult to pay it off, especially if your credit card’s interest rates are high. If you have a secured credit card against collateral, you also risk losing the collateral if you’re unable to make the debt payments.

So what can you do to make your credit card a safer financial tool? The simple answer to this question is that you should learn ways to minimize your credit card debt and practice financial responsibility.

Here are some tried and tested hacks to help you achieve this.

1.     Pay More than the Minimum

Paying the minimum amount on your credit card is not enough. If you’re carrying an amount forward to the next month, you will be charged interest on it, and your debt will only increase. This is why it’s always a good idea to pay more than the minimum amount every month and ideally carry forward zero debt into the next month.

2.     Pay off Highest Rate Credit Card First

If you have multiple credit cards, you should make it a point to pay off the debt on the credit card with the highest interest rate. Once that debt is paid off, you can move towards paying off the credit on the relatively low-interest credit cards. This way, even if you carry the debt to the next month, you’ll get the lowest possible interest rate on it.

3.     Use Savings to Reduce Debt Levels

It might seem like a bad idea to withdraw money from a savings account to pay off your debt, but this is actually the best thing to do if you want to avoid interest charges. While you may lose out on the profit you could’ve made with the savings, the loss will be significantly lower than the interest amount you’d have to pay otherwise.

4.     Get a Balance Transfer Credit Card

Finally, you can also consider getting a balance transfer credit card. This type of credit card is the best way to reduce your interest payments and overall debt levels. Of course, before you do this, you should assess whether the application fee of this card offsets the lower interest payments.

Compare Major Canadian Credit Cards on Great Canadian Rebates

If you’re looking for ways to minimize credit card debt, you should make sure to start off with the ones that provide the most affordable annual percentage rates. You can get all this information and more to do a side-by-side comparison of all the credit cards on Great Canadian Rebates.

We have made this online platform to help you choose the best Canadian cash-back credit cards. By applying for the right one, you can not only reduce your credit card debt but also enjoy impressive rewards and discounts. The best part is you’ll also get a credit card rebate through us as soon as your application gets approved. Visit our website to learn more.