--- title: I can’t pay off my credit card balance. What are my options? date: 2018-06-22T15:14:01-04:00 canonical_url: "https://grantthorntonlimited.ca/en/debt-help-resources/articles/options-for-getting-out-of-credit-card-debt" section: Articles --- [ Back to the hub ](https://grantthorntonlimited.ca/en/debt-help-resources/articles) # I can’t pay off my credit card balance. What are my options? ![Person holding a yellow card seeking solutions to deal with a credit card balance they can't pay off](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleHero/6547/What-do-I-do-if-I-cant-pay-off-my-credit-card-balance.webp) Credit card debt is one of the most common types of consumer debt in Canada. With the cost of living increasing, more Canadians are turning to credit, with the [average credit card balance](https://www.transunion.ca/lp/iir?utm_campaign=int-ca-23-f146520+canada+q2+23+ciir&utm_content=landing-page&utm_medium=press-release&utm_source=press-release) just over $4,000. Relying on credit to make ends meet can lead to a growing balance and high-interest costs, making it one of the most expensive forms of debt to manage. Understanding how credit cards work, your rights when receiving collection calls, and the debt relief options available to you can be a lot to navigate. Taking common questions from real clients, we’ve created a guide to help you understand all your options. ## Why’s it so easy to get overwhelmed by credit card debt? Accumulating credit card debt is easy. Your balance can quickly grow into an unmanageable amount because of a financial rough patch, [job loss](https://grantthorntonlimited.ca/en/debt-help-resources/articles/a-guide-to-managing-your-finances-for-the-newly-unemployed), emergency, or overspending. A large, unmanageable credit card balance can lead to the habit of making only the minimum monthly payment, resulting in high interest costs. What was once a financial tool to establish credit history and make certain transactions, can easily turn into a financial trap. ## What happens if I can only make the minimum payment? Let’s put minimum payments and interest costs into perspective. Say you have a $1,000 credit card balance that you make $10 minimum payments on at an interest rate of 18%. By only making the minimum payment, it will take you ten years to pay off your balance. This debt will cost you more money in the long run, as interest costs will leave you paying a total of $1,789. This example doesn’t factor in adding new charges to your balance, which would prolong repayment and increase interest costs. ## What happens if I miss a credit card payment? - **One missed payment.** If you miss one payment but have a good borrowing history, your creditors may send you a polite reminder letter. - **Two missed payments.** You will likely receive a strongly worded letter and possibly a call from your creditor asking for payment. - **Three missed payments.** Your creditor may enlist a collection agency to contact you for repayment. Collection agencies use a variety of tactics including frequent and pressuring phone calls. - **Court action.** Creditors may obtain a court judgement ordering you to repay your debt. If you’re unable to agree on a repayment plan, you may experience [wage garnishment](https://grantthorntonlimited.ca/en/debt-help-resources/articles/wage-garnishment-how-it-works-and-what-you-can-do) or asset seizure. - **Damaged credit score.** Your [credit score can be negatively affected](https://grantthorntonlimited.ca/en/debt-help-resources/articles/what-affects-your-credit-score) by a series of missed or late payments. ## How could a Licensed Insolvency Trustee help? The first step to taking control of your credit card debt is to [consult with a debt professional](https://grantthorntonlimited.ca/en/debt-help-resources/articles/what-happens-when-you-meet-with-a-lit). Based on your unique financial situation, all your debt relief options will be presented and described to you. This may include a consolidation loan to roll your debt into a single monthly payment at a lower interest rate or more formal solutions like a [bankruptcy](https://grantthorntonlimited.ca/en/bankruptcy/what-is-bankruptcy) or [consumer proposal.](https://grantthorntonlimited.ca/en/consumer-proposal/what-is-a-consumer-proposal) ## Can you file a consumer proposal for credit card debt? A consumer proposal is a formal debt relief program administered by a Licensed Insolvency Trustee. This process allows you to consolidate your unsecured debt, including credit card debt, and only pay back a portion of the total amount you owe through fixed monthly payments over a maximum period of 5 years. Once completed, unpaid balances are written off by your creditors if they’ve agreed to the proposed terms. A consumer proposal allows you to remain in control of your assets, so you don't need to worry about losing your home, car, investments, or property. Additionally, if you have collection agencies calling you about your credit card debts, filing a consumer proposal generates a stay of proceedings which stops all collection calls and wage garnishments. ## Who is responsible for joint credit card debt? A joint credit card remains the shared responsibility of both account holders until the debt is fully repaid and closed. A common misconception about joint debt is that you’re only responsible for your half, but this isn't the case. In the event of a divorce, both of you are still equally responsible for repaying the debt. If your spouse starts missing payments, creditors or collection agencies can come after you even if you didn’t incur any of the credit card debt. If one of you decides to file a [bankruptcy](https://grantthorntonlimited.ca/en/bankruptcy) or a [consumer proposal](https://grantthorntonlimited.ca/en/consumer-proposal), the other person will still be required to pay back the full amount of the joint debt. Essentially, if your name is on the agreement, you’re responsible for repaying the debt. ## What does it mean if my credit card is written off? There are a lot of misconceptions about what “writing off debt” means. When referring to a successful bankruptcy or consumer proposal, the portion of your debts that aren’t repaid are considered written off. Outside of an insolvency filing, if a debt is written off by a creditor, it doesn’t negate your obligation to repay the debt. In this case, writing off a debt is a strategy by credit card companies to remove unpaid debts from their books. Often, these debts are sold to a collection agency, that will collect the debt from you, often with significant interest and fees added. Although the debt has been sold to a different company, they can still call you for repayment or take legal action. Are you receiving collection calls for credit card debt? [Learn how to deal with debt collectors and stop collection calls for good.](https://grantthorntonlimited.ca/en/debt-help-resources/articles/stop-collection-calls-for-good) --- If you find yourself in a situation where you’re struggling to pay back your credit card debt, we’re here to help. At Doane Grant Thornton, [we offer judgment-free, consultations](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) to help you find the best path to debt freedom. Call today at 1-844-4GT-DEBT and start your path to a brighter financial future! ## Latest articles [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/67684/assets-CP-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [What happens to your assets in a consumer proposal? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/65155/recreational-vehicle-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [### What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/63555/influencer-survey.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [### Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ## Subscribe to our newsletter Get tips and tools to help manage your finances and live debt free. \*I agree to receive communications from Doane Grant Thornton. I understand that I can unsubscribe at any time. ## **Take the first step** to debt freedom Speak to one of our debt solutions professionals during a free, no-obligation consultation. [ Book a free consultation ](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) ## Related articles ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/67684/assets-CP-square.webp) ### [What happens to your assets in a consumer proposal? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) In most cases, a consumer proposal allows you to keep all of your assets while bankruptcy may require you to surrender certain non-exempt assets. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) ![Marina filled with sailboats and recreational boats along the Charlottetown waterfront on a sunny day.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/65155/recreational-vehicle-square.webp) ### [ What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) For many Canadians, recreational vehicles offer freedom, adventure, and unforgettable family memories. But if you’ve financed an RV, travel trailer, boat, ATV, snowmobile, or side-by-side, those monthly payments can become difficult to manage if life takes an unexpected turn. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) ![A woman in scrubs sitting on a park bench looking at her phone, with imagery of social media likes and spending surrounding her.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63555/influencer-survey.webp) ### [ Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) While social media may be free to use, the things it influences us to buy often come at a cost. As influencer marketing continues to grow, more Canadians are making purchases based on what they see online. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ![A woman sitting with papers and a calculator in front of her](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63201/cp-annulment-square.webp) ### [ What happens if you miss a consumer proposal payment? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) Missing a payment during your consumer proposal can feel scary—but it’s not the end of the road. This article explains exactly what happens if you miss a consumer proposal payment, how to avoid annulment, and what to do if your consumer proposal is annulled. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) ![A young woman sits with and supports an older woman holding a cane.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleThumbMedium/58677/caregiver-article-square.webp) ### [ Tips to avoid debt as a family caregiver in Canada ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) With the rising cost of living and long waitlists for long-term care, more Canadians are becoming family caregivers, but it can come with an emotional and financial cost. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) ![Person packing a box for moving](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/57664/adult-child-moving-home-square.webp) ### [ How to budget when your adult child moves back home ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) Adult children moving back home isn’t just a trend—it’s quickly becoming the norm. While the cost of living continues to climb across Canada, many Gen Z and millennial Canadians are packing up their apartments and returning to the nest as “boomerang kids.” [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) ![Person looking down at bills with head in hand, surrounded by paperwork and an open laptop.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/56923/utilities-square.webp) ### [ What happens if you don’t pay your utility bills in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada) If you’re worried about unpaid electricity, heating, or water bills, you’re not alone. But disconnection isn’t immediate, and you usually have options to protect your service while you get back on track. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada)