Make a list
Write down every debt, what you owe, the interest rate and the minimum payment.
Pick a method
- Highest interest first. Pay the minimum on everything, and put any extra money on the debt with the highest interest rate. This usually saves the most money.
- Smallest balance first. Put extra money on the smallest debt. Paying one off quickly can keep you motivated.
Either way, when one debt is paid off, roll that payment into the next one.
Habits that help
- Always pay at least the minimum, on time.
- Try not to add new debt while paying off old debt.
- Ask your lender about a lower rate, or look into whether combining debts makes sense for you.
- If you feel stuck, reach out for help early. The Government of Canada lists places to get help managing debt.
Learn more from the Government of Canada
This guide is general education, not personal advice. Rules can change, so check the official sources above.