#CanadaFinance; #CanadaEconomics; #CreditCardRateRelief; #COVID19Pandemic
Ottawa, Apr 3 (Canadian-Media): As most Canadians pay an interest rate that's far higher on their credit cards than they do for other forms of debt, Canadians are questioning why credit card bills aren't included in the financial relief packages offered by the governments to homeowners, renters, small businesses and employees impacted by COVID-19 in these unprecedented economic times, media reports said.
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Canadians feel this could add another financial burden burden that they have to carry.
Credit on the credit cards, not being secured to any specific asset does not provide any collateral against the loan, make credit cards as unsecured debt. Higher rates on the credit cards serve to offset that higher risk.
At the end of last year, less than three percent of Canadians were more than 90 days behind on their credit card's minimum payment, said Credit monitoring firm TransUnion.
The federal government is working with credit card providers to to alleviate the burden on Canadians, said Prime Minister Justin Trudeau.
It was also conveyed by the Canadian Bankers Associations (CBA) big banks' willingness to work with their customers affected by credit card debt to find solutions.
But no specific details were provided by CBA.