Canadian credit cards have carried 19.99–20.99% APR for decades. Enter your balances and monthly budget to see exactly how much interest each strategy costs — and when you'll be debt-free.
Take three common Canadian debts: CA$5,000 credit card at 20.99% APR (CA$100 min), CA$2,000 retail card at 28% APR (CA$40 min), and CA$10,000 line of credit at 8% APR (CA$80 min). With CA$450/month and the avalanche method, you clear the 28% retail card first — saving roughly CA$380 versus the snowball approach.
Both strategies start the same: pay the minimum on every debt each month. The difference is where any remaining budget goes.
Avalanche piles the surplus onto the highest-rate debt. In Canada, that's often a retail store card or a high-rate Visa. Clearing these first minimises total interest.
Snowball piles the surplus onto the smallest balance. Quick wins keep you motivated, but if the small debt has a low rate (e.g. a line of credit at 8%), you leave expensive debt compounding.
Many Canadian banks offer lines of credit at 6–9% — significantly cheaper than credit cards. If you have both, the avalanche is especially powerful because the APR gap is wide.
For the full math and behavioral research, see our guide to the debt avalanche method.
Both methods pay minimums on all debts, then direct extra budget at one target. Snowball targets the smallest balance first; avalanche targets the highest APR first to minimize total interest.
Avalanche is always mathematically optimal — it minimizes the rate at which interest accrues across your portfolio.
Research suggests many people stick better with the snowball because eliminating individual debts provides visible progress. Choose whichever method you'll actually follow through on.
Canadian minimum payments are typically 2–3% of the balance or CA$10, whichever is greater. Paying only the minimum on CA$5,000 at 20.99% can take over 20 years to clear. Even an extra CA$50/month dramatically cuts the timeline.
Canadian credit cards typically charge 19.99–20.99% APR. Retail and store cards can reach 28–30%. Low-rate cards are available at 8–12% but often have annual fees. Check your cardholder agreement for the exact rate.
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