The minimum amount for credit card payments in Quebec will be increased to 4% of the balance starting August 1st.
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For Quebecers, the minimum amount required as a recurring payment on their credit card will therefore be set at 4% of their balance, half a percentage point more than at present.
This minimum amount will be gradually increased each year until it reaches 5% of the balance in 2025, the Consumer Protection Agency said in a press release on Tuesday.
These changes are part of the measures “to prevent debt problems” decided by the government in 2017. Since August 1, 2019, every new credit card contract must provide for a minimum payment that may not be less than 5% of the remaining amount.
Specifically, for a consumer who only pays back the minimum monthly amount on their credit card balance, the half-percentage-point increase for every $1,000 represents an additional payment of $5 per month.