TD Canada Trust interest rate changes

[MomToTwoBoys]

I'm not sure how many TD Canada Trust members we have on the boards, and if anyone knows of what TD will be doing to their current card holders come December 1st, but here is what we just saw on the news:

As of December 1st, TD Canada Trust will raise the interest rate on many of their cards by 5%.

What does this mean? The current average TD Canada Trust VISA card holds an interest rate of 19.75%. We fall into that category because that is who our VISA card is through and it's DH's bank. If we miss two monthly payments, then the 5% raise will go into effect. Now is this a permanent effect? Only if you don't make your minimum payments. If you make them for two months, they will lower the interest rate back to where it was before.

Perhaps this will help people realize that relying on credit and not paying for the things you charge after the charge has been on there for 60 days is reckless and financially irresponsible. Even for a card that has a limit of 6k and the card is almost at that limit (like we are), if we don't make at least a $118.00/mo payment for two months then we end up paying more interest. We already pay more than the minimum because the minimum doesn't cover both balance protection and retail interest charges, which amounts to roughly $150/mo.

[mom2three]

Are any other cards following this practice as well?