Canadian planning guide · 2026
Debt repayment becomes more manageable when every balance is visible and the payment plan is realistic. The goal is not to find a clever trick; it is to understand the cost of each debt, avoid new high-cost borrowing and use a payment amount you can keep making.
Educational information · Last reviewed August 2026
Write down each balance, annual interest rate, minimum payment, due date and whether the rate is promotional or variable. This creates a true starting point and can reveal a balance that is costing more than expected. Continue making at least the required payment on every account to avoid late fees and damage to your credit history.
With the avalanche method, extra money goes to the highest-interest balance while minimums continue elsewhere. This can reduce interest cost. With the snowball method, extra money goes to the smallest balance first, which can create momentum. Either method can work when the monthly amount is sustainable; the important part is that every freed-up payment rolls to the next balance.
If minimum payments are no longer possible, contact creditors early and review trustworthy non-profit credit-counselling options. Be cautious about firms that promise to erase debt, ask for large upfront fees or tell you to stop communicating with lenders. A debt plan should leave room for essentials and a small buffer so the next surprise does not restart the cycle.
Put this into practice
This guide is for general education and planning. Confirm important decisions with the appropriate official source or qualified professional.