Overview
- Average credit card rates sit in the low-to-mid 20% range, with Fed data showing roughly 21% and other measures near 22% despite easing in some other borrowing costs.
- Balances have grown to roughly $1.23 trillion, and delinquency rates have climbed from about 1.5% in late 2021 to nearly 3% recently.
- Experts note that issuers raised rates quickly and have lowered them slowly, citing profit strategies and higher risk from lower scores and greater utilization.
- Daily compounding magnifies costs for those carrying balances, turning even modest debt into faster-growing obligations.
- Consumers can seek relief through nonprofit debt management plans that may cut APRs into single digits, issuer hardship programs, 0% balance transfers for 12–21 months with 3%–5% fees, negotiated rate reductions, and making payments twice monthly to reduce interest.