The true cost of the minimum payment: what your card hides
What exactly is the minimum payment?
The minimum payment is the portion of your credit card balance you must pay each month to stay "in good standing." You avoid late fees, your credit score takes no direct hit… and that's about all it does for you.
Behind the scenes, the rest of your balance keeps generating interest — month after month, year after year. Quebec's Office de la protection du consommateur (OPC) puts it bluntly: paying only this amount means "in the end, it costs a lot and you repay your debt for a long time."
Let's look at the numbers. Not opinions — official, verifiable numbers. Once you see them, the right move becomes obvious.
The OPC's official example: $1,000 at 19.9%
On its "Minimum payment: maximum interest" page, the OPC shows what happens with a $1,000 purchase on a 19.9% card, depending on the share of the balance you pay each month:
| Share of balance paid each month | Total credit charges | Time to repay in full |
|---|---|---|
| 100% | $0 | — |
| 50% | $34 | 8 months |
| 5% (the legal minimum in Quebec) | $442 | 6 years |
Read that last row carefully: repaying $1,000 by paying only the legal minimum costs you $442 in interest and takes 6 years. You pay for your debt almost one and a half times.
And that's under Quebec's rule, already the strictest in Canada. It used to be worse.
Before: the 2.5% that lasted 14 years
Until 2019, the typical minimum payment in Quebec was around 2.5% of the balance. The OPC no longer publishes this example, so here is our own simulation using the same calculation method (monthly rate of 19.9% / 12, no new purchases):
- $1,000 at 19.9%, 2.5% minimum → about 14 years of repayment and ≈ $1,388 in interest.
Fourteen years. For a thousand dollars. That's why Quebec changed the law — and it's good news, even if your monthly statement went up.
Quebec's 5% rule: what the law says
Since August 1, 2019, every new credit card contract in Quebec must require a minimum payment of at least 5% of the balance. For contracts already in force on that date, the minimum rose from 2% to 5% gradually, by 0.5 percentage points per year — and since August 1, 2025, it's 5% for everyone.
In practice, on your card agreement you'll see something like: "the minimum payment is the greater of 5% of the balance and $10" (or $15, depending on the issuer). Outside Quebec, minimums are often lower — typically around 2% to 3% — which makes the trap even deeper.
The law's goal is simple: make you pay less interest and get free faster. But be careful — 5% is a floor, not a target.
Worked example: $5,000 at 19.99%
Take a very common situation: a $5,000 balance on a 19.99% card, with no new purchases. Here's what happens depending on your monthly payment (verified calculations, monthly rate of 19.99% / 12):
| Monthly payment | Total time | Interest paid |
|---|---|---|
| 5% minimum only | 9 years and 10 months | $2,384.96 |
| Minimum + $100 extra | 2 years and 5 months | $1,040.51 |
| Minimum + $200 extra | 1 year and 6 months | $706.17 |
Adding $100 a month means:
- 7 years and 5 months less debt;
- $1,344.45 in interest saved.
That's the real power of paying more than the minimum: every dollar above it attacks the principal directly instead of feeding interest.
Test your own situation with our [minimum payment true-cost calculator](/en/minimum-payment-true-cost) — enter your balance, rate and payment, and watch the difference live.
Why the minimum costs so much: interest works against you
Every month you pay only the minimum, two things happen:
- Interest gets added to the balance. At 19.99%, every $1,000 costs you about $16.65 a month in interest. On $5,000, that's over $80 a month going up in smoke before touching your debt.
- Your payment shrinks as the balance shrinks. Since the minimum is a percentage, the less you owe, the less you pay — and the longer it drags on. It's a gentle slope to… nowhere.
It's the same mechanism as compound interest on savings, but reversed: instead of growing your money, it grows your debt.
3 concrete steps to get out (without extreme belt-tightening)
- Pay more than the minimum, even a little. $25, $50, $100: any fixed amount above the minimum changes the picture radically, as the table above shows. What matters is that it's every month, automatically if possible — automation beats willpower.
- Stop adding purchases to that card. While you're paying it down, use a debit card or another card you pay in full. Otherwise it's like bailing out a boat with a cup while it's taking on water.
- Negotiate or transfer. A 10-minute call to your issuer asking for a lower rate succeeds more often than people think. And if you carry several debts, our [snowball vs. avalanche comparator](/en/debt-snowball-avalanche) shows you the cheapest payoff order.
And to know how much you can actually free up each month, start by knowing your exact net pay with our [Quebec paycheck calculator](/en/quebec-paycheck) — the foundation of any plan that holds up.
If it's overflowing, you're not alone
The OPC reminds consumers that consumer associations offer free budget counselling — advice for managing your finances and settling debts, without judgment and without fees. It's an official resource, not an admission of failure. Asking for help when the numbers stop working is exactly what a responsible person does.
The minimum payment isn't your enemy: it's a safety net for tough months. The problem is making it a strategy. Now that you have the numbers, you have a choice — and the cheapest choice is to pay more than the minimum, starting this month.
Frequently asked questions
What is the legal minimum payment in Quebec in 2026?
Since August 1, 2025, it's 5% of the balance for all credit card contracts in Quebec (with a $10 or $15 floor depending on the issuer). New contracts have applied the 5% since August 1, 2019; older contracts transitioned gradually.
Does paying only the minimum hurt my credit score?
Not directly, as long as you pay on time: no delinquency is reported. But a high balance relative to your limit (utilization ratio) can lower your score, and it costs you a lot in interest.
Why does it take so long with the minimum?
Because monthly interest (about 1.66% per month at 19.99%) gets added to the balance, and your payment shrinks as the balance shrinks. A large share of each payment just covers that month's interest.
Is it better to pay the minimum on two cards or more on a single one?
Generally, pay the minimum everywhere to avoid late fees, then concentrate all extra money on ONE debt — ideally the one with the highest rate. That's the avalanche method, detailed in our snowball vs. avalanche comparison.
Where can I find free help if I can't keep up?
The OPC points to Quebec's consumer associations, which offer free budget counselling. You can also talk to your financial institution: the earlier it understands your situation, the more options you have.