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For those of you who live in Quebec, your credit card laws tend to be slightly different when compared to the rest of Canada.
Offers from select issuers are different, you have no balance transfer fees, and how your credit card minimum payments are calculated is different too.
And starting August 1st, 2020, a change is coming to that last point.
Credit card minimum payments in Quebec to increase to 5%
Right now, Quebec residents have their minimum payment calculated as 2% of the amount they owe (for the rest of Canada, minimum payment is 2.5% of the balance owed, with a minimum payment of $10).
Starting on August 1st, it will increase to 2.5%, then will continue to increase 0.5% every year until it reaches 5%.
This gradual increase only applies to accounts that are already open. If you open up a new credit card account after August 1st, the minimum payment will be 5%.
You can learn more about this change here.
These changes are meant to decrease credit card debt by forcing cardholders to pay more towards their credit card balances.
What are your thoughts on the changes? Are they helpful or harmful?
Let us know in the comments below.