i take care of my all reciepts and mailing.and also balance sheets.if you struggle to make a minimum payment, credit companies raise the interest rate, charge phenomenal fees, etc.At least you get paid for doing business with them.
============================================================
http//www.financehelpdirect.com

I feel very strongly that all lenders should pay back the creditor the interest they stole from them.
My reasoning is this, if i borrow 1000.00 i sould pay back 1000.00 and not another cent. because i did not borrow anymore than 1000.00. Also no company should be bail out with Tax payers Money, where are all those Millons they make before they the mismanagement begins?
I strongly believe wrongs don't go unpunish. God sees every evil and every deceit and reward the Lovers of money accordingly. Remember the Zacchaeus story? Lenders are like the tax collectors in Jesus' days on the earth. Make no mistake they will pay for taking more then their should in this life time and also in the judgement of God .Guarantee !!!

When applying for credit everyone knows the rates and fees.
They are clearly stated on the application and should not come as a surprise when you receive your statement.

If you don't have it don't spend it,...it is that simple!!!!!

When it comes to credit card use and fees, consumers need to remember that it is a case of 'Caveat Emptor' - Buyer Beware! As a consumer, when we use a credit card for purchases, we are purchasing the lending instute's services, so I would recommend we shop around no different than if we were buying a car, a pair of shoes or hamburger. Get the best deal possible. Remember that banks are NOT your friend ... they just LOVE the colour of your money. How many billions of dollars did they make last year?? Hmmmm ... and how many of us got a raise or were able to keep our jobs in this recessionary economy?? Unfortunately, the ones who pay the exhorbatant interest fees are the ones who can least afford to - they are our middle class working poor. Totally legal and so unethical.

I agree totally with Glenn Thibeault, NDP MP, finance critic. The banks' high interest rates are outrageous. I fully understand they are in business to make a profit but how do they expect common people to pay back when the interest charges are so extreme. I think lowering the rates will reduce the number of people to file for personal bankruptcy and, therefore, the banks will be able to recoup losses.

reply to Posted by: K Khan | 10/06/2009 at 05:16 AM
you must have a good job mr kahn or won the lottery, not everyone is as luckey as you are to have the huge incomes and job to support the things in life folks have to bear due to illness, handicap etc etc. Sound like you have been blessed by God, monetary wise , but are lacking in compassion and understanding of other human beings that have no alternative but to borrow, not everyone is making the 100,000 a year salary so they can pay for unforeseen things that might happen in the future.
Banks are what I call legalized thieves they alter contracts in a subliminal and almost sinister way that people get trapped by using the card especially in an emergency. Banks and card companies need to lay out the Charges and terms in a simple way, Also they need to reduce those rates to half of what they charge, this also applies to Oil and gas companies21%-28%, and retailers 22-29%, Banks 12-19% seems strange when they can borrow from the Bank of Canada at .25% and also They only pay the depositor.25% they are all userus rates and then to top it all off they have hidden fees. they are way out of line and are not doing much for serving people based on the fees they charge. I remember when you went to a bank and got real service now its for standing in line and waiting and when you use their mechanical tellers you pay a fee that is outragous. Just legal rip off thats all the bank system is so that those on top can write themselves a big bonus check after the annual shareholders meetings are over. BANKING is way to FAT ON FEES AND hidden CHARGES a complete revision of that system needs to be done.

People are responsable for their debts; it seems
to me that going after Credit Card Companies who
in the business of making money which is a given
Right, and then some organizations go after them
from their own self-interests. This is a Free Country
and we are all free to make money.

If you cannot pay your bills, then don't get a card!

Suck it UP!

Sorry they are a illegal license to print monay at super high rates when they can borrow for the BofCanada at .25% and they charge 19-28% on the cards they are legal thiefs. I believe that 1/2 of those rates would sufficient. The sneaky way they introduce services is just amazing and the government and the reugaltors just sit on their hands and do nothing. almost worst then the crime era of the Mafia and the shakedowns of merchants in the 1920-30-40 Legal Thiefs.

To Responsible

I doubt they make much of the fee the charge the retailer as that covers the cost of processing the transaction and what do mean hefty fees to use the card. Are you referring to the $10 a month you pay to enjoy the points, product protection, rental insurance etc? You used the money and paid nothing for its use because you were able to pay it at the end of the month. If there was no grace period more people would think twice about using a credit card, but then that wouldn’t work for the card companies. They are in the business of loaning money for profit so they do everything they can to get people into the position of paying. There is nothing wrong with making a fair profit but you can hardly call the rates and penalties they apply fair.

I was reading some of the comments where many people think that customers should get a discount when paying cash for their purchases... The funny thing is that instead of that, many businesses offer a discount when paying with a particular credit card such as a store credit card, on what they call a customer appreciation basis... So not only do they make money by attracting more customers with a discount, but they also make more money from having their own credit card, not to mention how high the interest rates often are on such credit cards, as high as 29 percent! How ironic is that?

Responding to John's comment about people who pay off their credit card balances monthly, who are you kidding? Banks make money from these people also, they charge hefty fees for the use of the card, they receive fees from vendors to name just two. There could be more.

Not everyone is reckless with credit cards and sometimes you just get stuck. How does it make any sense to raise interest rates and stack on fees which is going to force you into default? For those of who are so money wise that have funds to pay off your balance in full, you ought to be charged a fee each month. You use their money for a month and they get nothing from you for doing so they pass those costs for others to bear. Credit card companies lure people into using their cards by all kinds of means in the hope that you will not pay the balance at the end of the month. You would think that if anything those with the good credit ratings would actually be lousy for the card companies. For those who feel that companies should be allowed to charge what they feel, I take it you just happily pay all those bills that you are stuck paying.

I was offered my first credit card at 19 and I want to thank MBNA for taking that chance on me as a student.

Sure I got into debt. I also got hit by a drunk driver in the middle of the night and when I couldn't even get emergency EI to help me through until settlement 5 YEARS LATER!!!!!!!!! Guess who helped me to live. Ya them....the ones who would let me make such a small min on such a large debt.

I payed them first and when I came out of the hardest time in my life. I have the highest credit rating out of anyone I know! Including people that have had credit their entire lives!

That said,

The goverment needs to step in and cap it period. No one should be paying 25% interest on anything! It is highway robberly and it does no one good! And I had to teach myself how to make the system work for me! The schools should have Basic Finances 101 tought in grades 11 and 12. Everyone should know about compound interest and how to read a financial statement and that if they put 20% from every pay, 10% to RRSP and 10% to save for themselves that they have a hope of being 40 and able to live a balanced life.

thanks for sharing this great post!

People, its about YOUR SPENDING HABITS FIRST!!

If you have no source of income then do not use your credit cards.

Theres something childish about adults demanding government agencys for bailouts that would not be required if YOU curbed YOUR spending habits.

You spent more money then you could afford to pay off easily....

well then you tighten your belt and get to paying that bottom line down.

Dont go crying to the bloody nanny state to fix the mistakes you made, take responsibility for your own actions and PAY OFF YOUR DEBTS!!!

And before you start flaming that I am some upperclass....

I am a 31 y/o man- the sole provider for my family ,

I work 55 hrs a week and support my wife and toddler son!!

I have been saving for the past 2 years to afford a car.

I refuse to ask for nanny state legislation to pick up after me!!

If you cannot be responsible enough to have a credit card DO NOT GET ONE!!

I heard that some years ago when banks interest rates were high and credit card rates were lower, the credit card companies went boohooing to the powers that could change things and ask that they have a chance to make more money and got a temporary (I was told this by my loan officer)order to increase their interest rates. Well they did and have continued ever since. With prime being low like its is now the credit card companies should be lowering their rates to prime plus 2, 3, 4, 5..... In a world that is spinning so out of debt control all should be willing to make the proper adjustments when a crisis is at hand.

Personally there should be a cap on the interest a bank can charge for interest. I work in a remote region,ended up having to stay on a job longer than anticipated, missed paying my bills one month. The credit card company jacked my rate an additional 14% because payment didn't get received on time. Called them, rules are rules they said...read the fine print of your contract. So now I'm at 24% which is robbery/loan sharking in these times. I now can't wait to pay off the card and then never use it again. If the government is to help us people get out of debt, I agree that for a period of time the gov't should instate that the banks charge a small % on top of prime to quicken up the repayment process on existing outstanding credit card debt. It would get us out of the hole quicker and the banks would probably write off a much smaller amount of bad debt. Win win to me!

Hardly a surprize the Fed (which regulates banks) would shoot themselves in the foot by getting 'tough' with the very people lending money. Another way to think of it is with your RRSP plan. Would the government tell the banks to lower interest rates so more people could save? Perhaps with so much debt to creditors, it is no surprize people can not plan to retire.

The problem with credit cards is that in cases where you need to put a security deposit down, you need a credit card. When booking a hotel room for business or pleasure, a credit card is needed. When renting a car, a credit card is needed. In cases like these, cash is no longer KING.

Credit Cards are evil. Everyone pays for the convenience. The retailer pays the customer pays and society pays. The best thing to do with your credit card is burn it.

The next thing to watch out for is your debit card. Check out this link to a series on debit cards on PBS!

http://mikehassard.blogspot.com/2009/09/debit-card-financial-card-game-kelowna.html

I don't like the way banks work either as a lot of commentors seem to be saying, but we have to get real. They are a business and interest is the way they make their money. People know when they receive credit cards what it is going to cost them. Then when they get into trouble they cry that they are being ripped off. The problem is they don't know how to handle credit. You can't expect to have it all your way. If you can't stand the heat get out of the kitchen.

The name credit card is a missnomer: it should be "Purchase-card". I have a credit card with the "Super-store" and collect points wherever I use this card. As a rule I receive about $30.- discount on my monthly grocery shopping, sometimes more. That is besides the free turkey three times a year and the discount at the gas pump.
I do pay off my balance every month and therefore do "NOT PAY ANY INTEREST AT ALL !"
If I need to make a larger and / or unexcpected purchase I have a credit line with TD Canada Trust at one percent over prime.
One more thing, I live within my means, work only partime and manage just fine.

CHEERS !
WITT !

PS: The fact that I am single, semi-retired, have no outstanding bills, no dependance, a very small mortgage, receive only a Government pension (hence the partime job....) may make a differance.

My husband and I got into a stupid situation where we were always getting limit increases. Well, at first it was all well and good and we weren't holding any balances. Then, work dropped off for my husband and the cards got used more and payed less. We were just making the minimum payment and getting farther and farther behind. Finally enough was enough. We tried to negotiate lower interest etc but no one wanted to help us. In fact ,one thing that really boggles me is, if you struggle to make a minimum payment, credit companies raise the interest rate, charge phenomenal fees, etc. My beef is, if you can't pay the minimum as it stands, how do they expect you to pay even more fees etc. They set you up for failure.
Well, we fixed that situation and went on a debt relief plan. Best thing we have ever done. Credit cards will be paid in full in less than 4 years and most are not charging interest, We pay one amount to the Credit Counselor and they deal with the Credit card companies.
The thing is, your credit goes to an R7 for the time you are on the DMP but once all debt is paid in full, your credit goes back to as if you never had any credit ever. You get a clean slate to start again. Personally, I will NEVER have another credit card ever unless it is a prepaid one. We have learned to live strictly on a cash basis and life is so much easier. I would highly recommend credit counseling to anyone having difficulty.

Consumers should be encouraged to reduce spending by paying cash. They should be offered a discount when paying cash since merchants would not be required to pay the credit card companies any merchant fees. Quite a few people I know use credit cards only because it makes no difference whether one buys merchandise/products/services on credit or cash. Such people also use credit cards only to buy time to pay, but always pay the statement balance in full. Very few merchants have a surcharge on credit card purchases. While it is necessary to have certain mandated rules to protect the consumer, we also need to give consumers incentive if making purchase with cash.

High credit limit cards are a liability.

The new cards with a chip in them also came with a change in liability.

Under the old system the banks and not you were liable for unauthorized use......NOW with the cards with a chip in them you are liable for unauthorized use not the banks.
It may seem like a simple change but now the liability is on you to fix up any mistakes and I suggest the banks will be content to collect interest and fee charges rather than assist with helping you.

The game changed so you should play according to the new rules. Maybe consider lowering your credit limit/liability exposure. Maybe consider reporting your card "compromized" (stolen) and resetting passwords on a regular basis. This is particularily essential as so much information is sent electronically or over the internet.

It is necessary to realize the financial system has changed so electronic transfers are neccessary and reverting to cash has serious limitations.....BUT one must protect themselves and limit your liability.

Pereonally I think restricting yourself to a prepaid card with no credit limit/liability might be a wize choice for many. It is kind of like back to cash only with electrinic transfers. The possibilities of air miles and cashback etc are potential sources of benefit to you IF and only IF you know and play the game according to the rules set out by the banks.

Suit yourself OR shoot yourself.

First off it may seem like the bank gets a lot from the merchant fees, but most of these fees go to pay the intercharge fee that is requested from MC international, Visa international, and Amex. Where consumers may be helped is in the interest rates, this is where the bank is making their money. What I do not understand since I have spent most of life working for a credit card division in the bank, is why when the bank of canada decreases the interest rate is this not reflected in the rates we pay on all our debt, credit cards, loans and mtg. This should be decrease automatically when the prime changes, and I think 5% over prime is too much 3% over prime is what we should be charged on ALL DEBT.

Credit card companies have a monopoly on the credit market. Commercial vendors are charged increasing higher rates for allowing consumers to use credit cards for purchases. These rates vary depending on the specific card (ie rates charged to vendor are higher on money back cards). Rates vary between vendors depending on volume and average transaction size. Visa and Mastercard have consumers and vendors in their pocket and need some regulation. In the US, 7-Eleven stores are trying to get government regulation on these fees. When there is a monopoly, you need regulation. When there is more competition, the market regulates price.

Credit cards are the most profitable part of a banks product range. We still have them charging 19%-25% even when the prime interest rate is so low. It needs regulation to force the banks to charge no more than say 5% above prime.
Credit cards are a venus fly trap, you land on them use them and then the trap springs. It would take ages to pay off the balance what with interest and them changing the rules every 5 mins.Bets thing is not to have them in the first place,say no when the bank pushes them down your throat. Only way the banks can claw the cash back lost is to keep charging these insane interest rates.
People are getting caught in the rabbit snares.

This new bill does absolutely nothing for the average Canadian citizen with credit cards.... It truly is nothing more than a joke. The only people it helps are those who missed paying of their balance by a few days and are now stuck with a interest charge. Another regulation to help the rich! Bravo Mr. Harper, bravo! Make sure you give yourself a good bonus for that one!

what became of the the fees the retailers have to pay to the banks for accepting credit cards? And why is there no discount for paying with cash or cheque??

I like the credit card i have. it has the lowest interest rate you can get on any credit card. you should always shop around before making a decision on a credit card. don't apply for the first card you can think of. if you want something cheap then it pays to look around. the new rules don't effect me at all. sure it will show me on my statement how long it will take me to pay off the balance if i pay the minimum payment but i really don't care cause i always pay above the minimum anyway.

I agree with the majority of the comments, but I personally feel that it is the parents job to teach your kids that credit is something to be treasured and not abused. Yes, banks are happy to send a 19 year old a CC and encourage them to spend it all! It is a business that is very profitable to them. There was a time when we used our cards to live, due to bad times, and carried a balance. Once we were able, we paid it off and do every month since. So, if you can't afford to pay it off at month end, you can't afford it. Banks don't give out $2000 or $3000 loans anymore, they just give you a CC. Only way we can change it is to take charge of our own life and live within our means. I can't agree with the people who want to blame the banks because they have no self control.
Come on people! It is your life, take charge of it and think before you NEED IT right now.

I would like to know when Banks started to control us. They can only make these huge profits by using our money which we give to them willingly for next to no reembursement and by us using their high price services, which we seem to feel we can not live without. You do have control if you refuse credit cards when they are offered and you can refuse to pay those high rates. Deal with them as you would a car dealer. If you don't get the terms you want, walk away. I also suggest that more of you turn to Credit Unions for your banking needs. At least you get paid for doing business with them.

Hey Michael

I didn't know that grammer was being check next time I'll be sure to make all the dots you like geese its a Blog so bite me

I keep all my reciepts and check them off the statement that way tou know what your balance should be. I have my balance withdrew on the due date which is hassle free

If the credit card companies wanted to be fair then the existing credit card rate at the time of purchase should not be changed to a higher amount if not paid off, The government has done little to help those in a financial bine. Credit cards rates went from highest 18% to 29%. If they wanted consumer spending on track why would they facilitate the additional money spent, be paid in interest to credit card companies. How is that going to stimulate the economy. How does forcing people into bankruptcy with higher interest rates help.

I have an understanding with my credit cards and that is If I can't pay off the balance by the end of the month then I don't get it or charge it. As far as I am concerned there should no need to charge what you can't afford. The generation of today wants everything now.Set aside money out of the paycheck for emergencies like appliances etc. that need replacing.If you like charging then don't complain when you have to pay high interest rates. Thats the bottom line. Sorry but that's life.

people don't have to pay those high card rates at all,you can negotiate rates on their card,I did and if I kept a balance,I would pay 9.11%.It's like buying a car,do a little wheelin and dealin and you can get a much lower rate

I have a friend who is on government disability (ODSP). A couple of years ago she was sent a letter from the Royal Bank offering her a $10,000 line of credit. She has banked in the same bank for years and all that is deposited in her account is her ODSP cheque. Having suffered a couple of strokes some years back she is capable of understanding what this was but not able to realize the repercussions. She did not have to go through an interview at the bank and was granted the line of credit - all she had to do was sign her name. She bought a high priced electric wheel chair, a new bed, etc. etc. When she finally came to me, she had been enduring all kinds of calls from credit companies, some very nasty and very crude. There was no way that she could ever pay this money back and I took her for an interview so that she could declare bankruptcy. There was at least one other person in her building who took advantage of this deal? I cannot believe that the bank would send the letter to her in the first place. Is there no checking done concerning the client's ability to pay? This situation angered me so much and I wonder how many others got "the letter".

The only thing I can say is it hard today with all the bills people have accumalated and with the way jobs are...However my father always taught me if you cant' afford wait until you can...Yes I have a credit card or two and only use when necessary so when the bill does come in I am in a position to pay it off in full....My job is secure at this time but if it I was to be layed off then I would only have the regular bills that come with owning a house and no need to worry about the credit cards...

People just remember if you really don't need it then don't buy it, unless of course you pay cash..

One thing to be aware of is if you are close to your max limit near the billing cycle. What happened to me was I was near it, the company charged the interest which put me over the limit by 2 or 3 cents and then I got charged an over limit fee of $29. I called and got it fixed because I did not put myself over the limit, they did. If I did it to myself then fine I know the rules and pay the fee. I think that's an unfair set up that way because how are we to figure out the interest before our bill when all the rules are different?

The credit card companies always win. Case in point: I had a Sears card, but was informed several years ago that it would be changed to a Sears Mastercard. Since I have another credit card, on which I earn points, I only used the Sears MC to make Sears catalogue purchases. Well, because I returned some items, I ended up with a $164 credit on my account (I ALWAYS pay off all my credit cards in full). The next time I went into a Sears store, I requested payment of my credit. Nope, that's no longer handled by Sears, but by Chase bank (the issuer of the Sears MC). I was advised to just leave the credit for my next catalogue purchase. Well, I was out of the country for a year, and I hadn't made another purchase for about 14 months. I just got a statement from Sears MC and they had DEBITED my account $25. I phoned and was informed that "they aren't a bank". So, you have a debt and you pay (rightly so), and you have a credit (in essence, they have a debt to you) and you still pay! My biggest beef is that I wasn't informed of this in the weeks prior to the $25 debit ("it's in your credit card agreement"). Like I said, you can't win.

If you want a loan get a credit line. I put all of my purchases on my credit card & if I can't pay it all by the due date I pay my card off with my credit line. Credit cards were never designed to carry large balances for years. If you do have a large balance on a credit card & are only making minimal payments talk to your bank close down the card & get a consolidation loan instead.

I have read most of the comments and i find that everyone is entitled to their opinion and each has a point , but to those who would call people whiners and blame them for their situation is not right.If all of us stop to think about how business works we would find that companies employe the expertise of the best psycologists and human behavior experts to find the weaknesses of the human mind and body.These experts know how to get you addicted to almost anything.Lets say for example,tobacco,alcohal,coffee , coca cola ,sugar etc,I think you get the gest of things.These companies know the effects of these products and monopolized on it, glamourizing it on every avanue that was availble to them , tv, magazines, affordability and so on.These CEO's of companies are tyrants with no concience.The remedy(BOYCOT) the product,this will trully change things.

My Son went to Calgary in Oct and his hip went into spasm @ 3am swelling to twice normal size. He had been complaining of pain in his hip since an operation 25 yrs ago. Dr's said it was in his head. He had an operation in Jan to remove his hip bones which was unsuccessful and had it redone in Apr. because of the extreme pain he was in. During this time he paid no interest to his RBC Visa.
I took over the account when I realized he could handle both the pain and the pressure. At that time he was 2 payments (88 days) past due. We immediately brought the account up to date, but a week later recieved a letter advising the card was cancelled and the rate had been increased by 6%. They call for $100 minimum payment 92% of which is interest. Not only is this robbery it also shows how callious they can be.

Hey, Dave.

It's called PUNCTUATION: all those funny little dots and things... you know, the ones you probably use to make little smiley faces and such? :) Try using them sometime.

Banks and credit card companies are taking big profits; RBC made $632 million just in fees in 2007 & 2008(I use to work for RBC). I became a Sales Rep. and needed a credit card to do business and I was making fairly good money - THEN, it happen a drunk driver hit me, I am now disabled and unable to work(can happen to you or anyone is a flash of a second - life changes because of someone else). Guess what, I am now a low-income worker with a credit card balance; I make my payments but can only pay the minimum balance which 90% is interest.BUT did you know that if you make your payment after 3 p.m. on the last day due, it is considered late and is now a missed payment - come on this is robbery and do this twice they will jack up your interest rate to 24.6%!!!!! Again this is outright robbery. One credit card company charges a fee $53 per year plus I was only $3.00 over limit and they charged me $29.00 over limit fee on top of interest and annual fee - again this is outright robbery. GOVERNMENT MUST go further to stop these credit card companies from highway robbery and look closer at all fees from them and banks. REMEMBER IT WAS THE US BANKS AND INVESTMENT COMPANIES WHO WERE GREEDY AND SENT US INTO THIS RECESSION - these executives are still getting their big salaries while the average hard working person's are paying for it. I am only one example of how life can change in an instant and then a recession hits to boot - it must stop now!!!!!

Now about collections first off it is your right to tell the collection agency that they are to stop Phoning you and to only correspond with you by MAIL if they don't stop you will contact your phone company and charge them with harrasment and that means all communication because they do not have a problem with calling you at work either if they don't stop the phone calls then you can have them charged with Harrasment and I suggest you do so also during the phone call get the persons name(it will likely be false)and the companys phone number what will happen is likely they will end up selling your account to another collection agency who will phone again oh yes and they will get down right nasty when you tell them all future dealing must be by mail only laugh and let them ramble on because you do not have to take their garbage and threats you have rights but they are counting on few people knowing this also they will not Sue unless its a very large amount(there are a few who will)but generally it is not worth it too them so they will harrass you

As noted in the article, it is the 'parasitically' high interest rates that do not match the financial reality of the recession. When Prime is so incredibly low, credit card companies can certainly be likened to carpet-baggers.

The Conservative government can and should address the real problem - immediately.

Well All I can say is that I got a Card when I was young you get it when you don't pay a cent event at Leons/Brick well my advice first off is DON'T DO IT!!!!I lost my Job a Month before it was due and didn't have any money to pay it down it was 2000 bux well interest +ADMIN FEES!!!which are charged every month it racked up a month later I had a descent Job and was determined to pay it off with 300 bux a Month I was on my way right Nope After 10 months or equivilant to 3000 bux my ballance went from 2400down to 2000 original Ballance unbelievable but true they will Rob you blind and not blink about it I now carry a Visa with a very comfortable Credit Limit am older and wiser my interest rate is 11% and my ballance at the end of each month is 0 its a hard lesson learned but it shows that its too easy to be trapped my the fly by night credit people MBNA is one they reel you in with 4.9% offers and the person who said earlier that the interest rate is right there on the contract failed to mention the companies like MBNA hide it in very small writing about 1 onehundredth the size of the 4.9% rope in and in small letters its for a Very limited time very cheeky and sneaky but definately stay away from DON'T PAY A CENT EVENTS if you are not 100% sure you will pay it off on time because they will sink you

There are various card options
I have 2 Visas from the same bank. One is at 5-1/2% with no frills.
The other gets 'points' covers car insurance, and has other bells and whistles for 19%
For people who use cards responsably, there are good low-interest options for short-term credit. For those who do NOT manage their funds effectivly, there are higher rate options. Banks (and Dept Stores) set interest rates according to RISK. Cards should be a short-term convenience. Those who carry a max-balance for years on end deserve high rates

I rarely use a cc but realize people must, with low wages, families, and high costs,plus unexpecteded illness, job loss etc. I think Melanie's point is defintely very valid, there is no reason for that except greed. But the main thing that should have been done years ago is the capping of interest rates.Why should cc companies have the privilege of setting rates that are unreasonable and get away with it. It is comparable to phone rates when there was only one carrier. That has not been done so the rest won't help.

As with most topics there are several sides to this question. Generally I think that there is not enough education about money & debt. We need to have more ed. in school; the earlier the better.
E.G. is there 'good' debt? Yes there is. If the money borrowed is for an investment that makes more in interest than that charged for the loan! Hard to do that these days, and certainly not with a credit card! So an upper limit on interest rates would help. And ban all that fine print which is a recipe for gouging!
Pesonally I like the credit rating idea - the higher the rating,the lower the interest rate. And there almost certainly should be some flexibility in the Co.'s to accommodate 'good' debtors in the proven event of sickness or unemployment.
But let's face it folks, if the banks etc don't get their profits one way they'll get it another, such as bank fees: & if you're an investor in bank stocks you'll want the profits!!!

I think this is a beginning, however, not enough. What is absolutely necessary is to cap the interest rates. Right now the consumer is at a disadvantage no matter what way you look at it. This needs to change. Carrying a balance is sometimes unavoidable, however if the interest rates were lower, at least it would help.

We should all try to decrease our credit card usage. Spend a little bit less every week. If we all do that the collective impact will be significant enough to put the pressure on the lenders. I remember 30 years ago credit cards were a sign of wealth. Now the poor have more credit cards than ever. It is a predetory tactic.

If you don't like the interest rates, don't get a credit card!

There needs to be another provision as follows.
Many credit cards already don't charge you interest if the balance is paid in full within a given time period. However, there is a gray area that needs to be addressed. Suppose your balance is $ 101.58 and you make a mistake and submit only $ 101.53 i.e. a 3 and and 8 look pretty alike. Since you did not pay in full your are now liable for the 18% or more interest payment on the whole balance not just the $ 0.05. There has to be a rule that an error of say up to $ 10.00 can be made without having to pay interest on the whole balance.

Credit card rates should be regulated by the gov't and rates should be tied to the prime rate charged to the banks. The interest rates on credit cards used to be much lower before everything spiked in the early 80's and mortgage rates rocketed to 25% and Canada Savings Bonds were paying out 18%. Credit card companies followed suit out of necessity to cover their credit committments. Paying high rates seemed in tune as it was within a few points of prime. The problems started when interest rates fell, the companies did not follow suit. Most people I dealt with at the bank paid their balances each month and didn't notice the that the rates remained at their all time high. Also back then not as many people had credit cards and if so only 1. The problem nowadays is that people use thier cards as extended credit rather than a convenient way to pay for items you HAVE money for. Also it is way too easy to obtain a card. We regularly receive "preapproved" credit card applications from companies such as MBNA. In fact we still get apps for my father-in-law who passed in 1979!! Did you know that if you pay your bill in full each month your credit score is NOT as good as some one who makes partial payments! The cr companies don't make money from you! That's why my friend who is a single parent making $10.50/hr managed to rack up $50,000 in credit card debt.(How does anyone get a $20,000 limit on a Sears M/C with an income of $20,000?) The government needs to step in and regulate the rates and how cards are issued. Company shareholders will squawk but they are not the ones who are going to turn our economy around.

OK I tried to post a lengthy comment but received a messgage stating you could not accept my comment...what gives?

remember this. the road to bankruptcy is paved with credit cards

This is just another ploy to delay much needed changes. How can anyone in good conscience defend a govt policy that allows banks to charge 18/19 percent, sometimes ,at a time when prime rates are at historic lows. How does this grace priod help anyone? Those who are aplauding the changes are just trying to fool us. This is no reform. The banks are laughing; look at the killing they r making.

A credit card is necessary for many things (renting a car).There is a thing called a secured credit card. Get one, use it only when 100% necessary, and you won't have a debt to repay. And please, take responsibility for your own actions. That card wasn't forced on you, you took it voluntarily!

A credit card is not a personal loan vehicle. It should not be used as such by ANYONE, no matter what their circumstances.

The proper way to manage credit is to have a loan, ideally collateralised with a low rate and to pay debts from that if the cash is not available.

High interest rates on credit cards and foolish consumers who elect to carry balances because they spend more money than they ought to without doing ay financial planning allows me to profit from cash rebates offered by my card issuers. Capping rates will mean that those of us who do pay our bills will lose the perks from having done so.

I am getting tired of the government regulating our lives in accordance with some grand plan to protect those who are too foolish to protect themselves. Everyone is NOT created equal. What ever happened to Caveat Empotor - Let the buyer beware?

People who get scammed because they went to unlicensed financial advisors who promised higher than reasonable returns ought to suffer their own losses . . . no one compensated me what MY broker lost a whack of my money in spite of my gentle requests to get me out of the market.

Quebec dwellers (I hesitate to use the term citizens) will soon have the luxury of paying huge tax increases disguised as electrical rate increases because that provincial government spends money like a drunken sailor - overpaying for everything (and especially shoddily built civil works projects) so that their buddies can get rich.

Hydro Quebec already makes BILLIONS in profit and the consumer is theoretically the owner of the utility.

Now they're talking about billions for unneeded transit expansion - all of the beneficiaries of those improvments COMBINED will never contribute that much money in their lives to government coffers.

The government seems to have it backward . . . those who PAY for government should have a say in it's operation. Not the slugs who steal from it or those who drain it dry without contributing.

In California they are talking about banning certain big screen TVs because they are not energy efficient - only poor people will suffer from that ban - we do NOT need a nanny state. There is already too much regulation in our personal lives.

What we need are fiscally responsible governments who have the balls to cut services and the drive to maintain existing infrastructure BEFORE expanding and buying things that it can't afford.

And we need people to take responsability for their own actions.

Well I have a great suggestion. THe banks are collecting a lot of money on the credit card interest. They are also making huges profits.

Why dont the banks divide the profits among the credit card holders are the end of the year.

There is very little reason a company should have unusually high profits.

Be like a credit union -- at the end of the year you get a bonus based on the amount of interest you have paid for your loan. That way everyone is happy.

People, please don't confuse credit cards with personal loans. Many of you seem to believe this is free money or some special entitlement you have. If you are broke, you are broke. End of story. If you have no money, don't borrow from anyone and suggest that your situation is their problem. Interest rates can be whatever the companies choose to make them and that is the nature of business. If you don't like the rates, don't borrow. The whining about rates makes me laugh.

In response to Robert. Stop pontificating! You are in no position to judge others when you have no idea what their circumstances are. Hmmm lets see...did they lose their job? get injured on the job? get laid off? suddenly take sick? Have a sick child? It makes me ill to read your responses. If you are able to pay off your Cc's in full - good for you, but the majority of people are not so fortunate. There's the high interest rate issue but also the additional fees like charges added on by the Cc company if you have not paid off your balance. Who can win on that one! The average joe has been squeezed dry! I agree with Dennis that the maximum interest should never exceed 10%. What really burns my butt is when banks/Cc companies solicite students to get credit cards. What a way to start out in the world. Vera, keep your head up. It sounds like you have come a long way :)

I agree that interest rates are rediculous on all credit cards. 18-30% when prime is.025% would have been called long sharking in my younger days. 5% above prime is more than generous considering that they only will give you 1-1.5% on your investments.

I find it quite surprising that some people here are supporting the credit card companies. Sure, it's each persons responsibility to pay off the debt owed, but wouldn't you prefer having the interest decreased significantly? I don't think most realize just how much interest they're paying in the long run on a credit card at 24%.

I can not wait for this credit reform. It's about time the government steps in and helps us out. Canadians are drowning in debt!

In the old country you pay cash or safe till you have the money. 1967 when i came to Canada you need credit. what for. if i buy a house, fine. for a car i save. for everything else i save. now cant get gas in BC with out credit card . bummer

I understand some folks need to have a credit card and some folks can handle it. There are others who grew up without one, do not have the skills to handle the card and I think this group should have a cap for interest. It is like the card companies are preying on this lot. Those who have the money can pay it off in 21 days, others will not be able to. I personally have cut up all my cards as I am tired of paying large amounts back to the companies. I have also started to not give business such as hotels etc my business where I must have a credit card to book etc. I think the business world has some responsiblilty to accept here, as the card is promoted as being secure, only way to travel, book airlines etc. What did the world do when we had no credit cards? I remember in the 50's and onward, we survived very well with cash. I say let's go back to cash, we then would have less bankruptcy claims etc. The public pays for the mistakes not the companies who are losing. Each and everyone of us does. So why are we promoting credit cards, they are very easy to get when you are young. The banks almost beg the young ones to take a card.

Well this is going to be interesting on my Card.. It shows a minimum payment of 0$ on a balance of 4,000+$..
Go figure guess it will take me a while to pay this balance off... My father will roll over in his grave but I agree with the NDP MP Glenn Thibeault, there should be a cap on interest rates BUT based on your credit rating, the better your credit rating the lower the rate.. I have a perfect credit rating and 0$ in debt but my RBC Premium credit card carries an interest rate of 19.5% GO figure..Best advice I can give is PAY YOUR CARD OFF EACH MONTH and save a small fortune..

ull the plug on all credit card. Credit card are another ponzi scheme. Old days are good days, you can afford it don't think of buying it. at for the comment made by robert "Dont go crying to the bloody nanny state to fix the mistakes you made, take responsibility for your own actions and PAY OFF YOUR DAMN DEBTS!! " You can tell he is a bottom feeder collection agency"

Well they are in the business of lending money for profit the same goes to them lender you gamble you lose. The only people you should pay are those people who are your friend that do not charge any interest for lending money to me they are more important than those corporate ponzi credit card and lending institution.

Even if you pay off a total amount, on or before the due date and the card is not active (no purchases), the bank sends a statement 14 days later, claiming interest. It would be nice if everyone in business could charge interest on a zero balance.

I agree with Richard, however Jubbi makes an excellent point. The basic use of a credit card is so simple, yet so many are in debt due to their own stupidity!!! As Jubbi says,"What u can't afford, don't buy it!!!", and yet as I stated earlier so many stupid people in debt!!!
Folks u don't need to put cell phone bill pymnts, on ur credit card or other unecessary pymnt options on ur credit card and then go on to 'shop 'till u drop', only to realise at the end of the month on when ur pymnt is due u just can not affrod it!!! Be wise and think before u buy!!!!!!!!!

Cmon, ladies and gentlemen, Credit cards are OUR responsibility to pay off,

I know when I 1st received mine ALL the usurous interest rates were clearly marked on the application.

Its a unfortunate evil, but one we have to live with.

Its called personal responsibilty, you play....you pay.

Prending you are a innocent victim is just bull.

You spent more money then you could afford to pay off easily....

well then you tighten your belt and get to paying that bottom line down.

Dont go crying to the bloody nanny state to fix the mistakes you made, take responsibility for your own actions and PAY OFF YOUR DEBTS!!!

The article does not make it entirely clear but recently the grace period for credit cards were changed. No longer did you get an automatic grace period if you carried a balance. One had to "earn back" the grace period by paying off your balance in full, two months in a row. Now are we back to the way things used to be?
The banks snuck this change in without many noticing. Did you?

But, Bill, 'airmiles' are the second most contested item in a divorce. How would we replace that title?
(Children 'n Pets are equal at 1st!!!!!!!)

You think the banks are scaming the average cardholder. Policital party members holding office use credit cards regularly for daily \ monthly or any other so called acceptable expenses. The debt on those cards are paid by the taxpayer. Rarely are they paid on time so guess who pitches in and pays the interest. On the other side of the coin guess who ends up collecting Air Miles or other card user benifits. Why would our politicians want to correct a injustice inflicted on the average citizen when his pockets are being lined and hes able to enjoy paid vacations on the public. Wise up people

I am so glad jubbi is comfortable to take advantage of others. It is the 'ability' of the SOCIOPATH to find 'glee' in taking advantage of others. As, the only way to receive $150/yr. is to get it from someone else and to think it is from the 'company' is infantile.
To take advantage of the disadvantaged (due to any circumstances) is the definition of cruelty and an inexcusable.
I hope jubbi never gets the 'short end of the stick', although it sounds like jubbi has never made a mistkae except when 'he' thought 'he' was wrong!

Credit cards maximum interest should be taking care
of by Parliament once more, and should never exceed 10% .

Sorry, guys, that was I agree with the person following Richard...aka dee lanan.

Thanks for letting me blow off steam!
I'm back on track to get my Cc's up to date
and everything current...except for one exception!

I agree with Richard.

All of a sudden, the 1.9% interest rate climbed to 25+% and when the recession hit me square on, I paid a small amount each month, that would have been the equivalent of the interest based on the original rate. After a few months of my paying a nominal amount each month, the CC co. threw up their hands, ignored my pleas for leniency and placed my card into collection with a totally un-businesslike agent! Such a turkey. I'd use stronger language, but this is on the web!

They've tried intimidating me, threatening me, calling me unheathly names, shoved my nose in the catdung...and continue to call and harrass me at every turn, almost weekly.

I'm a pensioner, and on commissioned sales. This doesn't matter to the a**hole collection agent. Obviously he's never been there, done that...and as a result, is still getting his wages paid, regardless of how insolent he is towards the customers of the original company. There really ought to be a law against such pervasive collection techniques, and from credit card companies who
continue to use these very derogatory methods to collect the outstanding balance, at over 20% interest, that they can. If the rates were even capped at double the originally offered rates, say 3.8% interest, or double that, to 7.6%, life would not have become so complicated!

But to jump to 25+% interest with penalties...no bloody way anyone in their right minds can cope with that!

Sorry, but I'm really unhappy about the quality of service and the actions of the collection agency, after the accounts exec. could not relate and refused to acknowledge and appreciate that we were in a recession--about a year ago.
I've continually sent payments, and they are totally thank-less.
It is my understanding that negotiating the unpaid balance less a lot of the unpaid interest is what the government has tried to implement. Not the case with this particular company. They are above the laws of Canada.

I agree with Richard.

All of a sudden, the 1.9% interest rate climbed to 25+% and when the recession hit me square on, I paid a small amount each month, that would have been the equivalent of the interest based on the original rate. After a few months of my paying a nominal amount each month, the CC co. threw up their hands, ignored my pleas for leniency and placed my card into collection with a totally un-businesslike agent! Such a turkey. I'd use stronger language, but this is on the web!

They've tried intimidating me, threatening me, calling me unheathly names, shoved my nose in the catdung...and continue to call and harrass me at every turn, almost weekly.

I'm a pensioner, and on commissioned sales. This doesn't matter to the a**hole collection agent. Obviously he's never been there, done that...and as a result, is still getting his wages paid, regardless of how insolent he is towards the customers of the original company. There really ought to be a law against such pervasive collection techniques, and from credit card companies who
continue to use these very derogatory methods to collect the outstanding balance, at over 20% interest, that they can. If the rates were even capped at double the originally offered rates, say 3.8% interest, or double that, to 7.6%, life would not have become so complicated!

But to jump to 25+% interest with penalties...no bloody way anyone in their right minds can cope with that!

Sorry, but I'm really unhappy about the quality of service and the actions of the collection agency, after the accounts exec. could not relate and refused to acknowledge and appreciate that we were in a recession--about a year ago.
I've continually sent payments, and they are totally thank-less.
It is my understanding that negotiating the unpaid balance less a lot of the unpaid interest is what the government has tried to implement. Not the case with this particular company. They are above the laws of Canada.

I would like to see "0" limit credit cards, or pay as you go credit cards. It has become mandatory that people have credit cards in order to travel, make reservations, make certain purchases, or put up collateral. Even pay as you go credit cards make life difficult, when they are not recognized at many locations, or for many services. Even though they have master card, or visa on them, they still do not carry the power, even with huge amounts on them. Also with limited outlets they are hard to service. Why can't the banks be required to carry &/or recognize these in the same why that over charged credit cards are. If the money is not there, than it is declined. There is money to made with my service charges, but I guess it is not enough.

that is very good for people that low income like me.

I like it just the way it is. I put EVERYTHING on my credit card, but pay it off every month. I pay no fees, no interest and once a year I get about $150.00 cash back. The key is not to buy anything you cannot afford. This concept is so simple that if you do not understand it, you deserve to pay ridiculous amounts of interest.

Credit card companies charge way too much for interest rates. Capping them at reasonable amounts would benefit all. Increasing the interest rate for people having difficulties seems counter productive. Lowering them to allow pay off would be better for both the companies and consumers. Most people I know would rather pay them off than file bankrupcy. But in the end the best way to avoid interest is not to carry a balance.