See how fast you can get debt-free — and how much interest you save by paying extra each month.
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The average Canadian carries significant credit card and line of credit debt, often at interest rates of 19–29%. Even small extra payments can dramatically reduce the time and total interest paid.
The debt avalanche method targets your highest-interest debt first — mathematically optimal, saving the most money. The debt snowball targets your smallest balance first — psychologically powerful, giving you quick wins to stay motivated. Research shows the snowball method leads to higher debt payoff completion rates despite costing slightly more in interest.
On a $10,000 credit card at 19.99% with a $250/month minimum payment, you'd pay over $6,800 in interest and take 6+ years to pay it off. Adding just $100/month extra cuts the payoff time nearly in half and saves over $3,000 in interest.
Many Canadian credit cards offer 0% balance transfer promotions for 6–12 months. Transferring a $5,000 balance from a 19.99% card to a 0% promotional card and paying it off during the promo period can save hundreds in interest. Watch for transfer fees (typically 1–3%) and the rate after the promo ends.
If you're overwhelmed by debt, non-profit credit counselling agencies can help negotiate with creditors and set up a Debt Management Program (DMP). Look for agencies affiliated with Credit Counselling Canada or the NFCC. Beware of for-profit "debt settlement" companies that charge high fees.
This calculator provides estimates based on fixed interest rates and regular monthly payments. Actual payoff times may vary. Not financial advice — consult a credit counsellor or financial advisor for personalized guidance.