By Tony Freanisco, Personal Finance Writer at BorrowNow.ca · Published August 18, 2026 · Last updated August 18, 2026
Want to pay off credit card debt faster and pay less interest? This guide covers the proven payoff methods, when consolidating helps, and how to compare a lower-rate loan in one 60-second application.
At a glance: Pay more than the minimum · Target the highest rate first · Consolidating can cut interest · A fixed payment beats revolving debt · Comparing won’t affect your score
Credit cards charge compound interest at high rates, so when you only pay the minimum, most of your payment goes to interest and the balance barely moves. To pay off credit card debt, you need a plan that puts more money against the principal and, ideally, lowers the rate you’re paying.
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If you’re juggling several balances at high card rates, a debt consolidation loan can replace them with one fixed monthly payment – often at a lower rate. Because a personal loan charges simple interest over a fixed term (instead of revolving compound interest), more of each payment goes to the principal, and you get a clear payoff date.
Compare the total cost of borrowing, not just the monthly payment, and choose the shortest term you can afford. See debt consolidation for how it works, or compare a personal loan – comparing on BorrowNow won’t affect your credit score.
Pay more than the minimum and target the highest-rate card first (the avalanche method). Consolidating several balances into one lower-rate loan can speed it up further.
Often yes. A personal loan charges simple interest over a fixed term, so you get one predictable payment and a clear payoff date – usually at a lower rate than a credit card.
Avalanche saves the most money by tackling the highest rate first. Snowball gives quicker wins by clearing the smallest balance first. Pick the one you’ll stick with.
Comparing options on BorrowNow doesn’t affect your score. Taking a consolidation loan and paying it on time can actually help your credit over time.
BorrowNow matches Canadians with loans from $20 up to $50,000, depending on your income and ability to repay.
Usually no – keeping them open can help your credit utilization. Just avoid running the balances back up.
Income-based lenders consider fair and poor credit, so you may still qualify for a consolidation loan. See our guide to getting a loan with bad credit.
Ready to tackle your card debt? One 60-second application. No obligation. No impact to your credit score to compare.
Disclaimer: BorrowNow.ca is a comparison and education service, not a lender or card issuer. Card features, rates, and approval are set by issuers and can change; figures above are typical ranges, not offers. Interest applies only to balances carried past the due date. Spend only what you can afford to repay.
