How Interest Rates Affect The Average American Credit Card Debt
One reason that the average American credit card debt has been increasing over the past 10 years is the interest rates and penalties that many credit card holders are subjected to every year. The rising rates, along with additional fees, has added billions to the bottom lines of the major credit card companies.
The average interest rates on credit cards is 18.9% and rising. Some cards have introduction rates of as high as 23% and as much as 30% for those with damaged credit. 23% of Americans have maxed out their credit cards, 13% are at least 30 days behind on payments, and 11% have had their debt go into collection.
In addition, the penalty fees that credit card companies have begun to charge have endangered so many consumers that they are near the brink of claiming bankruptcy.
