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8 Suggestions to Effectively Manage Your Credit Card Debt


As a small business owner, balancing your finances is a large component of being successful. Borrowing through credit cards and effectively managing debt is crucial to having the financial flexibility you need without inhibiting the future success of your business. It can be challenging, and there’s no need to panic if you fall behind on your payments. If you use the following 8 suggestions, you should be able to effectively manage any credit card debt that you accumulate.

  1. Set a financial goal, and make it S.M.A.R.T.

When setting a S.M.A.R.T. goal, ensure that it is specific, measurable, attainable, realistic, and time-sensitive. Your goal should pertain to your business finances specifically, and have smaller goals so that you can track progress. Be realistic about how much you’re able to pay off at a time, don’t overdo it. Stay mindful of the goal you’ve set, and make adjustments on finances as needed.

  1. Stop overspending, or cut down spending as part of a monthly spending plan

In an ideal world, you’ll be able to put-away your credit cards when debt gets bad and focus on repayment. However, if your business requires that you continue to spend, check your finances and identify where spending can be trimmed down or borrowed from. Make a plan that highlights your limits and goals so that throughout the term you can track progress and adjust spending accordingly.

  1. Start with the highest debt/interest rate

Starting by paying off the debt with the highest interest rate is a great way to tackle debt efficiently so that you limit the amount of money that you spend on interest. Focusing the largest debts first also provides some relief as you try to balance all debts simultaneously.

  1. Pay off more than the minimum

Creditors are sneaky, and they purposely set low monthly payment amounts so that you take longer to pay, and ultimately pay more interest. Keep this in mind when you decide how much you want to pay back per month. It may be tempting to make minimum payments, but by making payments above the minimum, you will eventually save money.

  1. Find ways to enable cash flow

Juggling multiple credit cards and bills can be difficult for a small business owner, especially if you have a limited background in finance. Freeing up some extra cash is a basic strategy that allows you a bit more freedom when allocating your payments. To do so, identify the areas of overspending and make the tough decision to cut back.

  1. Talk to a credit counselor

Being a financial expert doesn’t come automatically to small business owners. That’s why credit counselors are a great resource. They’re the pros that you may need, and their advice comes free. As a small business owner, your credit is highly important for future business including loan applications and borrowing, so it’s crucial that you get properly educated and know which steps to take. A great first-step here can be a sit-down with a credit counselor.

  1. Stop missing payments & pay on time

This is a big one. Credit card debt problems can be inflated very quickly if you fall behind on payments and get stuck paying a lot of interest. There’s no easier way to make tough credit card debt worse. Trying making a note or schedule of your credit card payments. When your payments are on time, you’ll find that you don’t get dinged with extra charges and ultimately have a higher take-home at the end of the day.

  1. Source a low-rate small business loan

Consolidate your debt with a flexible, low-rate small business loan so you can pay down your credit card debt immediately and repay your loan on your own terms. Online lenders like Lendified specialize in Canadian small business loans and offer an instant decision and access to funds as early as the next business day
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About the Author



Lendified is Canada's premier online lender for small businesses. The company was founded by former bank executives dedicated to provide businesses with fast, easy, and affordable financing. The Lendified team regularly produces blogs and guides to help small business owners succeed.

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