Credit card holders in Quebec will be required to pay at least five per cent of their monthly balance starting on Aug. 1.
For purchases of $1,000, this represents a minimum payment of $50.
It’s an increase of 0.5 per cent, up from 4.5 per cent, which takes effect annually. It applies to all credit cards with a contract that took effect before Aug. 2019.
Quebec’s Office of Consumer Protection wrote in a press release that “this latter percentage already applied following a credit card application in the last six years.”
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The annual increase of 0.5 per cent was established in 2019 to help combat debt — but the measure ends this year with a final increase reaching five per cent. In 2019, the minimum payment was two per cent of the monthly credit card balance.
The Office says “Whenever possible, paying off your credit card balance in full each month is ideal: no credit fees apply. For those who maintain this habit, the upcoming 0.5 per cent increase is of no consequence.”
They also encourage Quebecers who find it difficult to make the minimum payment to turn to consumer associations to receive free budget consultation services.
The Minimum Payment: Maximum Interest page on the Quebec government’s website offers a credit cost calculator, with examples showing the benefits of making more than the minimum payment.
