As Canadians, we have a complicated relationship with credit cards. On one hand, they offer convenience, security, and rewards. On the other, they can become a financial trap—one that’s all too easy to fall into. If you’re struggling with credit card debt, you’re not alone. The good news? There are solutions.
The Benefits of Credit Cards
Used responsibly, a credit card is a powerful financial tool. It allows you to shop online, book travel, and manage day-to-day expenses without carrying cash.
In the early days, credit cards were mostly a convenience—an alternative to cash when shopping in stores. Today, they are practically essential. Online transactions, streaming services, and even some bill payments require a credit card. While there are workarounds, such as prepaid cards and digital wallets, nothing beats the ease of using a credit card.
Many credit cards also offer rewards—cash back, travel points, or store discounts—making them an appealing option for everyday purchases. Others provide valuable perks, such as travel insurance, rental car coverage, or extended warranties.
But these benefits come at a price.
The Downsides of Credit Cards
While credit cards offer flexibility, they can also be one of the most expensive ways to borrow money.
- Annual Fees: Some credit cards charge an annual fee, often in exchange for better rewards or enhanced benefits. Whether these fees are worth it depends on your spending habits—will you earn enough in rewards to offset the cost?
- High-Interest Rates: This is where credit cards can become a serious financial burden. If you pay off your balance in full each month, you avoid interest. But if you carry a balance—even if you make the minimum payment—interest starts piling up. And with interest rates often exceeding 25%, that balance can grow quickly.
- The Debt Trap: The biggest risk of credit cards isn’t just the fees or the interest—it’s the easy access to credit itself. With just a swipe or a tap, you can make purchases you wouldn’t have considered if you had to pay with cash. Before you know it, you’re carrying a balance that seems impossible to pay off.
This is how many Canadians end up in a cycle of credit card debt—using one card to pay off another, relying on payday loans to cover the payments, and watching their balance grow despite making monthly payments.
Breaking Free from Credit Card Debt
If you’re feeling trapped by credit card debt, the worst thing you can do is ignore it. The sooner you take action, the more options you have.
At LCTaylor, we are Licensed Insolvency Trustees—the only professionals in Canada legally authorized to help you restructure or eliminate debt through a Consumer Proposal or Bankruptcy.
Ask yourself:
- Are you struggling to pay off your balance each month?
- Are you using one credit card to cover payments on another?
- Are payday loans becoming part of your budget?
If any of these sound familiar, it’s time to talk to a professional.
Your Path to Debt Relief
Many people believe that making the minimum payment on their credit cards means they’re financially stable. The reality? Most of that payment is going to interest—not the principal. It could take decades to pay off your balance at this rate.
The people we help often say the same thing: “I wish I had reached out sooner.” Don’t wait until your financial situation worsens. A free, no-obligation consultation with a Licensed Insolvency Trustee can help you explore your options and put you on the path to financial freedom.
Take the first step today. Call us at 204-925-6400 or email questions@lctaylor.net to start your journey to a debt-free future.
Leigh C. Taylor, LIT
