Credit and debt in Canada: pay it down for less
Minimum payments, penalty rates, balance transfers and cash advances, worked out with real card terms so you can see the cheapest way out.
Edited by Krish Paul Updated October 21, 2026 4 guides
Minimum payment or a fixed payment?
Compare a minimum of $10 plus interest with a fixed amount you choose.
Minimum formulas differ by bank. Read how Canadian banks set the minimum.
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- What Happens If You Only Pay the Minimum on Your Credit Card in Canada?How your bank calculates the minimum matters more than the rate: on a $10-plus-interest card, $5,000 at 21.99%...
- Is a Balance Transfer Worth It in Canada? The Fee Math, Worked OutIn a hypothetical $5,000 example at $300 a month, moving a 21.99% balance to a 0% offer cut...
- What Happens If You Miss a Credit Card Payment in Canada?At TD, RBC, CIBC and BMO, one missed credit card payment costs you the interest-free grace period, and...
- Credit Card Cash Advance Cost in Canada: Fees, Interest and the MathA credit card cash advance has no interest-free grace period, so a $500 advance with a $5 fee...
All credit and debt guides
Costs and penaltiesWhat Happens If You Miss a Credit Card Payment in Canada?At TD, RBC, CIBC and BMO, one missed credit card payment costs you the interest-free grace period, and a second miss within 12 months raises the purchase rate to 25.99%...
Costs and penaltiesCredit Card Cash Advance Cost in Canada: Fees, Interest and the MathA credit card cash advance has no interest-free grace period, so a $500 advance with a $5 fee at 22.99% costs about $14.45 if repaid in 30 days.
Paying it offIs a Balance Transfer Worth It in Canada? The Fee Math, Worked OutIn a hypothetical $5,000 example at $300 a month, moving a 21.99% balance to a 0% offer cut total cost from $1,021 to about $210 to $226 including fees, but...
Paying it offWhat Happens If You Only Pay the Minimum on Your Credit Card in Canada?How your bank calculates the minimum matters more than the rate: on a $10-plus-interest card, $5,000 at 21.99% takes over 41 years, while a fixed $250 a month clears it...No guide matches that search yet. Try a shorter word.
Common questions
Why does paying the minimum take so long?
On a card whose minimum is $10 plus interest, only $10 a month goes to the balance. That is why $5,000 at 21.99% takes over 41 years, while a fixed $250 a month clears it in about two years. Read the guide
Is a balance transfer worth it?
In our $5,000 example paying $300 a month, moving a 21.99% balance to a 0% offer cut the total cost from $1,021 to about $210 to $226 including fees. One late payment on the MBNA offer raised it to $633. Read the guide
What does one missed payment cost?
At TD, RBC, CIBC and BMO, one missed payment costs you the interest-free grace period. A second miss within 12 months raises the purchase rate to 25.99% or 26.99% for about a year. Read the guide
Should I use a cash advance in a pinch?
Only if you can repay it fast. Interest starts on day one, so a $500 advance with a $5 fee at 22.99% costs about $14.45 over 30 days, and more every month after. Read the guide
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General information, not financial, tax or legal advice. Figures come from the linked Gizly guides, each checked against official or provider sources on the date shown in the guide. See how we check the numbers and our affiliate disclosure.