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Managing your debt

It pays to reduce your debt

Where to start

If you often find yourself short of funds before payday or unable to make more than the minimum payment on your credit card, you may need a debt strategy. Here are some tips to help you get out of debt faster.

Draw up a balance sheet

Take a look at your finances to figure out how much debt you're actually in. This will only take a few minutes.

Draw up a balance sheet

Put money away or pay down your debt?

4 steps to take control of your debt

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Make a realistic budget

Once you have your balance sheet, make a list of your income and expenses. You need to know how much income you can put towards your debt.

Did you know that transactions are now grouped into categories when you view your accounts online?

Make a budget

Prioritize your debts

Determine which of your debts are an investment (like a mortgage) and which ones are not (such as credit card debt or a car loan). You should generally pay off the second type first.

Address debts with higher interest rates first. If the interest rate is the same, start by paying off smaller debts. Having fewer debts helps your credit rating.

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Young woman looks at her tablet in front of a large sunny window
Young woman looks at her tablet in front of a large sunny window
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Have a plan

Ensure you always make your minimum payments to maintain a good credit score. You can negotiate a payment plan with your creditors if you find yourself falling behind.

If you have more than one credit card, save on interest by consolidating your balances to the card with the lowest rate. Put extra cash towards your debts rather than spending it.

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Tip

Reduce your monthly payments by consolidating your credit card debt to a low-interest card such as the Mastercard® SyncroTM,1.

Speak with an advisor

Don't forget that your advisor is always there to help. Using the balance sheet you've drawn up, they can recommend solutions to manage or consolidate your debts. For example, you could pay off your debts with a fixed-rate personal loan1 to enjoy fixed monthly payments.

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Young professional man explains something by making a hand gesture
Young professional man explains something by making a hand gesture
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Legal Disclaimers

™ Syncro is a trademark of National Bank of Canada.

® Mastercard is a registered trademark of Mastercard International Inc. Authorized user: National Bank.

1. Subject to credit approval by National Bank.

Learn more about debt

Need advice?

Meet with an advisor to build a debt repayment strategy.

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