Demystifying debt.

Why you should think about debt repayment now instead of waiting for that windfall.

“A part of me actually believed I would come into some money one day, and my troubles would be taken care of.”

We hear this a lot.

The burden of debt, combined with stressors like a pandemic, can make anyone want to wish it away. But avoiding those payment alerts may only contribute to more stress in the long run.

Out of sight, out of mind, right? Well, not really.

Although support systems like the government’s CERB program have proven to be helpful for many, Equifax has been seeing a continued trend of growing consumer debt.. And if these programs are reduced, Canadians may need to lean on other resources for support.

When the bills are piling up, a task as simple as signing in to your account to view your statement can feel overwhelming. But that feeling could be replaced by a sense of control. The first step may seem the hardest, but it often gets easier with time.

Know your numbers.

Once you’ve had a moment to take a look at things like your credit card statements, upcoming bills and your account balance, the next step is coming up with a plan. 

Set up a budget. 

Consider setting up a budget so you know where your money is going, and how much you can afford to put into a savings account at the end of each month. 

Sign up for online banking alerts.

And if you have a Capital One credit card, you can set up alerts that notify you when your payment is due, and when you’ve exceeded a certain limit you’ve set on your card.

While creating a mood board featuring yourself on a beach, debt-free and happy can provide temporary relief, it’s important to look at your financial situation first.

 We love the way Laurie Campbell, consumer credit and money expert, breaks things down:    

“Don't complicate it ... what you owe, what you're bringing in, and what you can afford to repay ... Once you get yourself out of debt, commit to financial goals ... paste them on your fridge.”

Now that’s the kind of mood board we can get behind.

If you’re facing financial difficulties and require support, we encourage you to visit Credit Canada Debt Solutions' website. They’re Canada’s longest-standing non-profit credit counselling organization, and we’re proud to continue to partner with them.

^* If Quick Check pre-approves a card, you can be 100% sure we’ll approve your application as long as:

a. There’s been no change in your credit file information, personal information or financial status from the time you receive your Quick Check results to the time you apply for one of our credit cards;

b. You’re at least the age of majority in the province or territory you live in;

c. Your application isn’t flagged for fraud prevention;

d. You don’t have an existing Capital One account; and

e. You haven’t applied for a Capital One account in the last 30 days or had an account with us that was not in good standing in the last year. In good standing means not past due, over limit, fraudulent, restricted, or part of a consumer credit counselling program or bankruptcy.

In some cases, we may not be able to open an account for you even though your application was approved. This can happen if we’re unable to verify your identity, or you don’t provide the required security funds if you’re approved for a Secured Mastercard^®.