One of the most common forms of debt that American consumers have today are credit cards. Overall, more than 100 million adults across the country carry some form of credit card debt on a monthly basis. Of these people, the amount of people that are aware of how much they are spending on credit card interest payments each month is shockingly low (https://www.cnbc.com/2018/05/15/only-39-percent-of-balance-carrying-cardholders-in-the-us-know-their-apr.html).
According to a recently study, nearly 40% of all credit card balance holders do not know what their interest payment are on their credit cards. This is considered very problematic in today’s environment in which credit card rates are continuing to rise along with overall interest rates. Today, many people that carry credit cards will have interest rates that are in excess of 20% and some, especially those with high balances and poor credit scores, could be paying over 30%.
Overall, the amount of credit card debt is continuing to increase for the average person. Today, the average person across the country has an outstanding credit card balance of around $5,600 and the average interest rate is nearly 17%, which means that the average person is paying nearly $1,000 per year in credit card interest rates.
Due to the high interest rate, getting out of credit card debt is getting to be very hard. Those that pay the minimum payments will spend more than a decade getting out of debt and will spend thousands in interest over that period of time. The rising rates will only make this harder.