What is the minimum payment on credit cards in Canada?

In Canada, the minimum payment is typically 2–3% of balance or $10 floor, plus any overdue amounts. At 19–23% APR, most of this goes toward interest rather than reducing your balance.

How long to pay off a credit card with minimum payments in Canada?

With 19–23% APR and minimum-only payments, it can take 10–20+ years to clear a credit card balance in Canada. You could end up paying 2–3x the original amount in total.

The Minimum Payment Trap in Canada: Why Paying Minimum Due Keeps You in Debt

Every credit card statement in Canada includes a "Minimum Amount Due." It feels manageable, but this number is designed to keep you paying for as long as possible. With APR rates of 19–23%, the math is not in your favour.

What Is the Minimum Due in Canada?

Typically 2–3% of balance or $10 floor, plus any overdue amounts. Plus any overdue amounts, fees, and charges. Major issuers like TD Bank, RBC, Scotiabank follow similar structures.

Why the Minimum Payment Is a Trap

At 19–23% APR, here's how your payment is applied: late fees and charges deducted first, interest charges deducted next, and whatever is left goes toward your actual principal. With Canada's APR rates, very little touches the principal.

The Real Cost of Minimum Payments

On a C$4,000 balance at 21% APR paying only the minimum: after 2 years, your balance may have barely moved. It can take over 10 years to fully clear, with total interest exceeding 2x the original balance.

How to Break Free

Look into low-rate credit cards (some Canadian banks offer cards at 8–13% APR)
Consider a debt consolidation loan through your bank or credit union
Contact Credit Counselling Canada for professional advice
Check if your bank offers a balance transfer promotion
The standard 19.99% rate makes the avalanche method particularly effective for multi-card holders

Frequently Asked Questions

What is the minimum payment on credit cards in Canada?: Typically 2–3% of balance or $10 floor, plus any overdue amounts. At 19–23% APR, most of this goes toward interest.
How long to pay off a credit card with minimum payments in Canada?: With 19–23% APR, it can take 10–20+ years. You could end up paying 2–3x the original amount.