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America’s Dependence on Credit Cards is Growing. The Fed’s Rate Hike Will Make It More Painful

As prices continue to rise, Americans are becoming increasingly reliant on credit cards to make purchases. And now, with the Federal Reserve’s latest three-quarter-percentage point hike, many of them will be paying more for the debt they’ve been accumulating. At a little over 18%, the average annual percentage rate on new credit cards is within a percentage point of its all-time high of 19% set in July of 1991. TransUnion found that there are more credit cards today, and there is more debt on those cards. TransUnion said 161.6 million people in the US—roughly half of the total population—had access to a credit card in the second quarter, a jump from 153.3 million a year earlier. In that same time frame, the average debt per borrower rose from $4,817 to $5,270. [CNN]

Keep reading this article on Forbes Small Business.

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