What To Do If You’re Falling Behind On Credit Card Payments

What To Do If You’re Falling Behind On Credit Card Payments

Written by Fairstone
Fact-checked by Caitlin Wood
Last Updated July 20, 2020

Sponsored by

Fairstone Canada

For this blog, we’ve teamed up with our partners at Fairstone.

Falling behind on credit card payments can happen faster than you think. Before you know it, you’re faced with late payment penalties and piling debt and are looking for a way to get back on track. We connected with our partners at Fairstone to put together some tips that can help you catch up on payments, and pay off your credit card debt fast.

Stop using your credit card – but don’t cancel it

You’ll never catch up on late payments and debt if you continue to rack up a credit card balance. Stop using your card until you’ve caught up on all your late payments. Tempted to cancel your card? If you’ve had the card for a while it shows that you have a long-established borrowing history, which reflects positively on your credit score. And if it’s your only card, getting back on track with your payments can help you rebuild your credit and demonstrate a positive payment history.

If the only way to avoid temptation is to cancel it, then go for it! Consistently racking up a balance and failing to make payments will leave you worse off. If you get a new card in the future, you’ll want to develop better money management habits.

Setup payment alerts or automated payments from your bank account

Automated payments help in two ways. First, you don’t have to worry about forgetting a payment – your credit card will be paid on the date you set it up. Second, it forces you to make bill payments before spending your money on anything else.

Tempted to spend your paycheque before paying all your bills? Setup your automated payments to come out the day you get paid. The money will go straight to your bills before you have a chance to touch it.

Reduce expenses to free up some extra money for debt repayment

If you want to pay down credit card debt quickly, it’s best to free up some space in your budget. Now is not the time for fancy dinners or shopping trips – sacrifice the fun stuff for a few months so you can make regular debt payments, and you’ll be back on track before you know it.

Looking for even more ways to reduce your expenses? Save money on gas by walking to work instead of driving (or carpool), cancel or put a hold on your gym membership, and pack your lunch at home. If you get creative, there are so many ways to reduce monthly expenses – then, put that extra money towards paying down your credit card balance.

Make debt repayment a priority over investing

Saving money is important. But if you’re behind on credit card payments, take the money you usually save and instead use it to pay down your balance. You’ll get back on track quicker, save money on interest, and will be able to begin investing again sooner than you think.

Talk to your credit card company

It can be nerve-wracking to ask your credit card company for assistance with repayments, but it doesn’t hurt to ask. And they’ll be a lot more receptive to supporting you if you’re showing an effort to pay down your credit card balance.

Payoff your credit card debt with a consolidation loan

Still overwhelmed by your credit card debt? It could be a good idea to consider a debt consolidation loan, especially if you’re trying to catch up on multiple credit card balances and other bills. A consolidation loan helps you pay off and combine all of your debts into one monthly payment, which is a lot easier to manage. And, it can help you save money on interest.

Whether you’ve fallen one payment or several payments behind, it’s important to remember there’s always a solution that can help you get back on track. Small changes to your money management will help you get back on track to financial freedom – that’s something to keep in mind to stay motivated!

Fairstone Financial is a leading alternative lender in Canada, they have been helping Canadians since 1923. Their mission is to provide Canadians, with fair to good credit, with an affordable alternative to payday loans.

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Make Smarter Borrowing Decisions

Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.

Save With Loans Canada

Special Offers

50 Free Trades Offer

50 Free Trades Offer
Ends August 31st, 2022

Almost $500 in commission-free trades. Code “50TRADESFREE”. Conditions apply.

View Offer
Borrow Today, Don’t Pay Till July

Borrow Today, Don’t Pay Till July
Limited Time

Borrow $500-$50,000 from Fairstone by May 31 and don’t pay until July.

View Offer
Build Credit With Refresh

Build Credit With Refresh

Build credit while spending money with the Refresh Financial VISA card.

View Offer
Build Credit For $7/Month

Build Credit For $7/Month

With KOHO’s prepaid card you can build a better credit score for just $7/month.

View Offer
Industry Spotlight

What's happening with Canada's credit industry?

addy ⎯ Making Real Estate Accessible To All Canadians

addy ⎯ Making Real Estate Accessible To All Canadians

Check out our interview with addy; a platform that allows Canadians to invest in different properties across Canada with as little as $1.

Read Post
Find The Best Rate
In Your Region
Best Personal Loan Provider by Greedy Rates

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Keep Track Of Your Credit Score

Subscribe with Credit Verify to monitor your credit rating and get your free credit score.