Credit card minimum payment restrictions / by Jason Allen, Michael Boutros and Benedict Guttman-Kenney. : FB3-5/2024-26E-PDF

"We study a government policy that restricts repayment choices with the aim of reducing credit card debt. The policy requires the minimum payment on credit card balances in Quebec to be at least 2% of the statement balance for cards opened before August 2019 and at least 5% for cards opened after August 2019. The rest of Canada is unaffected. We estimate this policy's effects by applying a difference-in-differences methodology to comprehensive, Canadian consumer credit-reporting data. The policy causes a persistent increase in minimum payments. The policy has trade-offs: reducing revolving debt comes at a cost of reducing credit access, and potentially increasing delinquency"--Abstract, page ii.

Lien permanent pour cette publication :
publications.gc.ca/pub?id=9.942594&sl=1

• Format MARC XML
• Format MARC HTML

Demander des formats alternatifs