Several financial institutions are planning to raise the interest rate on credit card purchases, news that might hurt in these times of inflation.
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Each year, 1.2 million Quebecers carry a month-to-month balance on their credit card, valued on average at $5,800.
A rise in interest rates might have major repercussions on the wallets of Quebecers.
For now, Desjardins is the only financial institution in Quebec not to have increased the interest rate on card purchases, set at 19.90%.
See the interest rate on credit card purchases in Quebec in the tables below.
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Taxpayers interviewed by TVA Nouvelles wanted to talk regarding their way of using the credit card.
“I always pay the balance in full the same day I put the money in, because I refuse to pay the big companies,” testifies a man.
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“The increases are exaggerated. It is not interesting. In an ideal world, it’s to make payment in full […] it’s not obvious with groceries today how much it costs!” explains a consumer.
Debt specialists regret the decision of the banks, which does not tie in with the actions of the Bank of Canada
However, there are tricks to offset these costs, which will hurt many taxpayers. Here is a summary of these developed by Sylvie de Bellefeuille, lawyer and budget and legal advisor at Option consommateurs.
1. Make a budget
2. Avoid using credit cards as much as possible
3. Include non-recurring expenses (driver’s license, Christmas gifts, etc.) in your budget
