Credit cards: Would a rate cap help your household?

The NDP has said it would cap credit card rates and extend powers to federal regulators to control "excessive fees on credit cards."  (Bobby Yip/Reuters)

NDP Leader Jack Layton says he will cap credit card rates and fees as a way to control the household debt of Canadian families - if he is elected prime minister.

Layton announced the party's first platform plank at a news conference Tuesday in Brantford, Ont.

The NDP proposal would cap credit card rates at five percentage points above the prime interest rate (currently at three per cent), and extend powers to federal regulators to control "excessive fees on credit cards."

Layton also said he would make compulsory what is now a voluntary code of conduct on transaction fees implemented by the Conservative government.

"It will allow banks to recoup a profit while keeping family debt loads manageable," Layton said in his speech.

Increased household debt means many Canadians families are turning to credit cards to pay for basic needs, he said.

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How significantly do you think a cap on credit card rates would help your household manage its finances? Are you having to turn to credit cards to pay for basic needs? Share your stories and thoughts in the comments field below.



(This survey is not scientific. Results are based on readers' responses.)