According to a new report from WalletHub, average interest rates for Credit cards currently exceeded their maximum reaching 20.92% one of the highest figures since the Federal Reserve boosted its monetary policy to reduce inflation and bring it to 2%.
Although maintaining a credit card debt is never advisable, currently due to the high prices of food, services, medicines and rent, consumers are getting more indebted every daysince they use these cards to pay their basic needs.
According to the study, today’s offers made by banking institutions for interest rates on credit cards are 22.15% compared to 18.32% the previous year, it’s quite a high figure that makes it even more difficult for customers to pay off their debts.
For WalletHub analyst Jill Gonzalez, “the problem is that credit card companies insist on raising rates that are already high,” she said. Therefore, she noted that “there is no limit to how high credit card interest rates can get, and they are making the most of the situation consumers are in right now,” he said.
The specialist explained that due to the constant increase in interest rates, consumers can literally owe more on their credit cards overnight without even incurring new debt. “If you don’t have excellent credit, you may not be approved for the lower rate. So that is a way in which the consumer is being scammed without knowing it,” Gonzalez said.
Source: La Opinion