Several financial institutions are planning to increase interest rates on credit card purchases, news that could hurt inflation in these times.
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Each year, 1.2 million Quebecers have an average monthly balance on their credit card of $5,800.
A rise in interest rates could have a significant impact on Quebecers’ wallets.
To date, Desjardins is the only financial institution in Quebec not to increase the interest rate on card purchases, which has been fixed at 19.90%.
The interest rate for credit card purchases in Quebec can be found in the tables below.
Taxpayers interviewed by TVA Nouvelles wanted to talk about their use of the credit card.
“I always pay the balance the same day I put the money in because I refuse to pay the big companies,” says one man.
“The increases are exaggerated. It’s not interesting. In an ideal world, making the payment in full is […] Today, it is no longer clear how much food costs!” explains one consumer.
A regretful gesture
Debt specialists regret the banks’ decision, which is unrelated to the Bank of Canada’s actions
However, there are tricks to offsetting these costs, which will hurt many taxpayers. Here is a summary of those by Sylvie de Bellefeuille, Lawyer and Budget and Legal Advisor at Option Consommateurs.
1. Create a budget
2. Avoid using credit cards as much as possible
3. Plan one-time expenses (driver’s license, Christmas presents, etc.) into your budget