Rising credit card interest rates are pushing Americans deeper into a long-term debt trap.
Americans now owe $1 trillion in credit card debt, with an average monthly balance of about $9,600 for borrowers who don’t pay their cards in full each month.
A year ago, a credit card holder making only minimum payments shelled out about $1,185 in annual interest, on average, said Ben Woolsey ofCreditCards.com.
After three quarter-point hikes by the Federal Reserve — a cost that banks pass on almost immediately to card holders — credit card borrowers are now forking over $1,254, or $69 more a year, in interest, on average.
Two more rate hikes are on the table for 2017, which would bring the total to $1,301, or $116 a year in interest.
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5 comments:
Agter 8 years of wanna be King Obama, what did you expect....???
One would expect that people would live within their means 8:23.When I have less money I do fewer things & go fewer places.Obama didn't cause people to lose their fiscal sanity.
AFTER 8 YEARS OF OBAMA.....
Don't be silly. People were overextending on their credit cards long before the Obama administration. Easy refi loans bailed out many homeowners...who then found themselves owing more than their homes were worth. Put the blame where it belongs; people who for whatever reason weren't living within their means.
I LOVE credit card debt! I get 30-60 days float on my debt (interest free) and pay it off every month. And then I get a rebate on my spending. Cheaper than paying cash cash! What's not to like? Just don't use a card to buy anything you can't afford to pay for now. Never use one for a loan for something you can't afford. Use it in place of cash, and it can be a money maker / saver. Use it when you can't afford what you're charging on it, and it will cost you dearly. When you do that, it makes everything 18-36% higher than paying cash for the same purchase.
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