Because just paying the minimum can be very expensive.
The minimum payment is the minimum portion of the credit card balance that must be paid each month.
If you only pay that amount, you're in "good standing," but in the long run, it gets very expensive! You'll be reimbursing that debt for a long time. You'll pay a high cost in credit charges, including a lot of interest.
A $1,000 purchase using a credit card at 19.9% paid off in time with a monthly payment of:
100% of the balance
$0 in credit charges
50% of the balance
$34 in credit charges, over 8 months
5% of the balance
$442 in credit charges, over 6 years
4.5% of the balance (minimum payment required starting August 1, 2024)
$511 in credit charges, over almost 7 years
There are solutions.
You can turn to consumer associations. Some of them offer budget consultation services free of charge: tips on managing your personal finances, settling your debts, etc.
Find a consumer association (in French only)
It might also be possible to work out an agreement with the credit card issuer. Contact them.
The increase in the minimum payment aims to prevent debt problems. By reimbursing more of your debt each month, you pay less in credit charges.
The minimum payment provided for in your contract may not be less than 5% of the balance owing.
If the required minimum payment percentage for your credit card was set at less than 4.5%, as of August 1, 2024, the minimum payment to be made every month must correspond to 4.5% of the balance owing.
The credit card issuer may charge more than 4.5% if the contract already provided for that possibility, but not if the issuer amended the contract in order to charge more than 4.5% without your consent.
As of August 1, 2025, credit card issuers will have to charge a minimum payment of at least 5% of the balance owing.
Here is how the amount of the minimum payment affects the credit charges you have to pay.
A $1,000 purchase with a credit card at 19.9%
| Minimum Payment (percentage of balance) | Total Credit Charges | Time Required to Fully Reimburse |
|---|---|---|
| 2% | $3,001 | Nearly 26 years |
| 4.5% | $511 | Nearly 7 years |
| 5% | $442 | 6 years |
What if you only make the minimum payment? Paying off 5% of your credit card balance, rather than 2% as was possible prior to 2019, can save you over $2,500 in credit fees!
Take a look at your account statement! You will see an estimate of the time it will take to reimburse everything if you only make the minimum payment. You will also find your card's credit rate. Do you know how high it is?
Consult other resources offered by the Office de la protection du consommateur:
