Just when you thought that credit card interest was as high as it could possibly be, it is going to go up! Shades of Shylock!

•    Bank of Nova Scotia – as of May 2008, the interest-free grace period for new purchases was reduced from 26 to 21 days.
•    The Toronto Dominion Bank - if you have a TD Visa and make a payment 30 days beyond the payment due date, the interest rate will be 24.75%.
•    Canadian Tire Corporation - is lowering credit limits for some inactive customers’ credit cards
•    Bank of Montreal – no changes to MasterCard this year
•    Royal Bank of Canada – no changes to Visa cards this year

These changes will affect many Canadians. There are currently about 64.1 million Visa and MasterCard cards in circulation in Canada, according to the Canadian Bankers Association. The Bank of Canada warns that any significant rise in interest rates could seriously impact the number of personal bankruptcies. A Credit Canada survey showed that:

•    30% of people from Ontario have 4 or more credit cards
•    40% of Canadians do not pay their credit card off in full each month
•    26% of Canadians do not consider the consequences of a rising interest rate when borrowing money
•    28% of Canadians do not know the interest rate on their credit cards
•    55% of Canadians have monthly expenses that exceed their monthly income at least once a year

The major injustice in all of this is that large corporations are getting tons of governmental assistance or in some cases, bailouts. But what of the individual who is drowning in debt? Instead of some relief, these bloated banks and financial instruments are putting the knife in and twisting it by raising interest rates and charging for services like ATM fees.