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Episode Info: Episode 2 of TheMoneyGuide.ca Podcast is now live. In this podcast I discuss how to reduce your credit card interest rate and ultimately eliminate your credit card debt. Please remember to comment below and check out our YouTube page for more theMoneyGuide.ca videos. Don't forget to check us out on iTunes. Hello and welcome to another TheMoneyGuide.ca Podcast. I get a lot of questions about this email or comment and on the forum—or on the site rather. I thought it’d be a good topic to address, and that would be the topic of “how do I either pay off my credit card debt or how do I lower my interest rate on my credit card?” This is a very common problem. Debts are so readily available nowadays. It’s easy to get multiple credit cards, especially for young kids in universities. They seem to be handing them out like candies. Not only do you get out of the university with student loan debt often, you get out of a university with credit debt. That credit card debt, unlike student loan debt, can attract a fairly high rate of interest. So you might find yourself a couple of years out of a university just starting your career. You might not be making very much money. So your credit card is cumulated to a fairly significant amount, considering the interest rate. Now, you’re starting to make a little bit of money, and you’d like to really pay down that balance. How do you do that? If you are going to maintain a small balance or just use your credit card for everyday use, how do you get that interest rate down? First, let me just start off by saying, if you can avoid it, it’s always best maybe not to not have a credit card but to at least not maintain a large balance on a card. You might use it—there are a lot of people I know or clients I know that use their credit cards for Air Mile purposes, so they put everything on their credit, accumulate as much Air Miles as they can, which they can use for flights, and other purchases, but they tend to be fairly disciplined, and they do pay off their balances at the end of each month. Don’t kid yourself. If you don’t have the discipline to use a card like that and start accumulating a large balance, I would say, it’s not worth the added benefit of having these Air Miles—if you don’t have the discipline to keep the balance down. First, how do you pay down a credit card? Well, the answer to that question usually starts with “have you properly budgeted out your household’s expenses, your income andRead more »

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