Skip to content
Client PortalContact(647) 946-2077
Litvack Group
Home›What We Do›Credit Card Debt
What We Do

Crush Your
Credit Card Debt
Once and For All

Trapped paying minimums on cards at 19.99% to 29.99% interest? A Licensed Insolvency Trustee can stop the interest, end the collection calls, and reduce what you owe often by up to 80%.

Book My Free Consultation
★ 5.0 Google Rating·99% Success Rate·Confidential·No Obligation
★★★★★4.9from 60+ reviews
Your Credit Cards
Visa — 19.99%$11,800
Store Card — 28.99%$4,300
Mastercard — 22.99%$6,900
Reduced To
One Monthly Payment$200/mo
Balances Reduced
Under Federal Law
Stop credit card interest
End collection calls
Reduce balances up to 80%
One affordable monthly plan
The Basics

Why Credit Card Debt Is So Hard to Pay Off

Credit cards are the most expensive form of consumer borrowing in Canada. Standard cards charge 19.99%, retail store cards 28.99% to 29.99%, and cash-advance rates can climb higher still.

Because the minimum payment is set so low — usually 3% of the balance or $10, whichever is greater — most of every payment goes to interest, not principal. The balance barely moves, even when you pay on time every month.

Add a few missed payments and the rate jumps to a punitive interest rate of 24.99% or more, and the cycle becomes nearly impossible to break without help.

Bank Credit CardsCash AdvancesBalance TransfersLines of Credit
Typical Credit Card Balances
Sample illustration
Visa — 19.99%$11,800.00
Mastercard — 22.99%$8,400.00
Retail store card — 29.99%$4,200.00
Annual interest charged+$5,200.00
Total credit card debt$24,400.00
In a Consumer Proposal~$8,000
All credit card debt is unsecured — it can be combined into a single Consumer Proposal with interest stopped on day one.
The Trap You're In

The Minimum Payment Trap

Paying only the minimum on a $10,000 balance at 19.99%interest doesn't get you out of debt - it keeps you in it.

$10,000 balance · 19.99% int · Paying only the minimum (3% / $10)
Years to Pay Off
25+
More than a quarter-century before the balance reaches zero — assuming you never use the card again.
Interest Paid
$12,200
More in interest than the entire original balance as every dollar paid by you, kept by the card issuer.
In a Proposal
~5 yrs
A Consumer Proposal finishes in five years or less, interest-free, at a fraction of what's owed.
A bank's minimum payment is designed to maximize interest revenue, not to clear your balance. The longer you pay the minimum, the more profit the bank makes.
If You Fall Behind

What Credit Card Companies Can Do

Missed payments trigger a predictable escalation.
Knowing what's coming helps you act before it does.

Penalty interest rate
After one or two missed payments, your rate can jump to a punitive 24.99%–29.99%, applied to the entire balance — not just the missed amount.
Non-stop collection calls
After 30 days, in-house collections begins. After 90 to 180 days, the account is sold to a third-party agency that calls daily — at home, at work, and to anyone on your contact list.
Credit score collapse
A single 30-day late payment can drop your score by 60 to 110 points. Maxed cards and collection accounts cause further damage that remains for six years.
Lawsuits & judgments
A collection agency can sue and obtain a default judgment — which then lets them apply for a wage garnishment or seizure of money in your bank account.
Other cards can tighten too
Card issuers periodically check your credit report — if they see a delinquency on another card, they may lower your limit or raise your rate on accounts still in good standing, even without a missed payment there.
Two-year statute of limitations
In Ontario, a creditor has two years to sue from your last payment or written acknowledgment. Any partial payment restarts the clock — which is why collection agencies push hard for "just $20".
How You Got Here

Credit Card Debt Isn't a Character Flaw

Almost no one sets out to carry a credit card balance. It starts after a life event: a job loss, a separation, a medical issue, a stretch of self-employment, or a few months where the cost of groceries and rent simply exceeded the paycheque.

The card was there for an emergency. Then it became the buffer between paydays. Then the minimum payment became part of the monthly bills — and the balance never went down.

By the time most clients reach us, they're paying $500 to $1,500 per month in minimums on debt that's barely shrinking. Filing a Consumer Proposal usually drops that to one-third the amount, with interest stopped and a finish line on the calendar.

$45minimum payment
$38 interest
Goes to interest$38
Comes off your balance$7
Minimums keep you
running in place
At 19.99% interest, more than 80% of a typical minimum payment goes to interest — only a few dollars touch the principal.
Your Options

How to Resolve Credit Card Debt

Four common paths. Which one is right depends onyour income, the size of the balance, and what you've already tried.

Four common paths. The right choice depends on your income, the size of the balance, and what you've already tried.

1
Balance Transfer Card
Move balances to a new card with a low promotional rate (often 0%–4.99% for 6–12 months). Useful if you can clear the balance in the promo period and you still have the credit score to qualify — usually 650+. Otherwise, the rate snaps back to 22%+.
2
Debt Consolidation Loan
Replace multiple cards with a single bank loan at a lower interest rate (typically 8%–12%). Reduces interest but not principal. Requires steady income and decent credit; most people behind on cards no longer qualify on their own.
3
Credit Counselling / Debt Management Plan
A non-profit credit counsellor negotiates with the card issuers to reduce interest (sometimes to zero) and consolidates payments. The full principal is still owed, and creditor participation is voluntary — they can refuse.
4
Consumer Proposal or BankruptcyMost Effective
A legally binding agreement under federal law. The moment you file, an automatic stay of proceedings stops collection calls, lawsuits, garnishments, and interest. Your balances are reduced (often by up to 80%) and rolled into one affordable monthly payment over up to five years.

Stop Working for Your
Credit Card Company

Schedule your free, confidential, no-obligation consultation today. In 30 minutes, we'll show you exactly what
your balances would look like reduced and what your new monthly payment could be.

Book My Free Consultation →
★ 5.0 Google Rating · $0 Upfront Fees · 99% Success Rate
Common Questions

Credit Card Debt Frequently Asked Questions

Quick answers to what we hear most from Ontarians struggling with credit card balances.

Q
Can credit card debt be reduced through a Consumer Proposal?
Yes. Credit card debt is unsecured and can be reduced by up to 80% through a Consumer Proposal filed with a Licensed Insolvency Trustee. Interest stops the day you file, and the remaining balance is repaid as a fraction over up to five years.
Q
Will making minimum payments ever pay off my cards?
At a typical 19.99% to 29.99% rate, minimum payments can take 20 to 40 years to clear a single balance — and you can end up paying two to four times the original amount in interest. Minimums are designed to maximize the issuer's interest revenue, not to get you out of debt.
Q
Can I keep one credit card if I file a Consumer Proposal?
No. All open credit cards must be surrendered when you file. You can apply for a secured credit card during your proposal to rebuild credit, and qualify for a regular unsecured card once the proposal is complete.
Q
Will the credit card company sue me?
They can. After 90 to 180 days of non-payment, accounts are typically sold to collection agencies, which may file a lawsuit and pursue a wage garnishment. Filing a Consumer Proposal or Bankruptcy stops the lawsuit and any garnishment immediately.
Q
Is a balance transfer card a good idea?
It can help if you can qualify and clear the balance during the promotional period. After the intro rate ends, interest typically jumps to 22% or higher. For most people who are already behind, the credit score required to qualify is no longer available.
Q
Will collection agencies stop calling?
Yes immediately. A federal stay of proceedings takes effect the day you file. Collection agencies are required by law to stop contacting you. Any further calls can be reported and stopped.
Q
How long will this affect my credit score?
A Consumer Proposal is rated R7 for the duration plus three years (typically around six years total). A Bankruptcy is rated R9 for seven years after discharge. Most clients see their score start recovering well before that — and many qualify for a mortgage within two years of completing the proposal.