Credit Card Interest Rates Should Be Capped
Eye-popping APRs of close to 30% at some merchants take advantage of the most financially vulnerable consumers.
Consumers who find themselves in heavy credit card debt are often just trying to get by financially.
Photographer: Angus Mordant/Bloomberg
Holiday shopping is on the horizon, which for some Americans means piling on the credit card debt. Nearly 40% of consumers will use a credit card to pay for their holiday shopping, according to TransUnion’s latest Consumer Pulse Survey. And one-fifth of credit card shoppers say they are struggling with paying their balances.
The average consumer balance has increased 11% since 2022 to $6,088, the highest level in the last 10 years, according to TransUnion. Beyond earning interest from credit card debt, banks take in an estimated $12 billion in late fees on credit cards annually, according to the Consumer Finance Protection Bureau.