Money

Your Minimum Credit Card Payment Is About To Increase In Quebec

And it will keep increasing until 2025.

The Office de la protection du consommateur (OPC) put out a reminder on Tuesday that the minimum payment on Quebec credit cards is set to jump to 3% of consumers' balance as of August 1 — an increase of 0.5%.

The minimum payment will continue to increase every year until it reaches 5% in 2025. The change is "part of the government's efforts to prevent debt," according to the OPC, measures that came into effect in 2019.

"Paying more than the minimum on a credit card allows consumers to save significantly on credit fees," the office said in a statement.

"For example, on a $1,000 balance on a card with a 19.9% credit rate, a consumer making a minimum payment of 2.5% would pay off the debt in 14 years and 7 months, paying a credit fee of $1,443.99. For a minimum payment of 5%, he would pay off his debt in 6 years and have to pay $441.87 in credit fees."

The OPC also encourages people who have trouble making minimum credit card payments to seek out free advisory services from a consumer association.

Since 2019, new Quebec credit cards all have minimum payments set to at least 5% of the card balance.