Basic InvestorModule 09 · Make borrowing visible
Compare the cost of the debt, not only the payment.
A lower monthly payment can still mean more interest, more time or more conditions. Build a clear comparison before changing a loan or relying on new credit.
The decision framework
Five questions to ask before choosing a strategy.
- What is the balance? Include every account, not only the one that feels most urgent.
- What is the rate and how can it change? Record fixed, variable, promotional and expiry terms.
- What does the minimum payment achieve? Check the time and interest cost, not just affordability today.
- What fees or penalties apply? Include transfers, annual fees, late charges and prepayment rules.
- What prevents new borrowing? A payoff plan needs a realistic cash-flow and emergency plan.
Using credit is not a character judgment. The useful question is whether the cost, timing and repayment plan fit the goal and the household’s essentials.
If debt payments are crowding out essentials or you are missing payments, consider contacting a qualified, not-for-profit credit counsellor early.
Private comparison workbench
Estimate payoff cost
Use rounded values to compare a balance and payment. Nothing is sent or saved.
Private estimate
This is an educational estimate. Rates, fees, payment timing and lender rules can change the result. Confirm terms with the lender or a qualified counsellor.
Applied action plan
Leave with one useful next step.
Primary references: Financial Consumer Agency of Canada: Managing debt and FCAC: Credit reports and scores. Reviewed July 23, 2026.