Credit Card Interest Rates Have Never Been Higher
May 20, 2019
Sluggish retail sales lately have shown that Americans are less willing to open their wallets. One possible reason may be the high interest rates on Americans’ credit cards. The average American now pays 16.9 percent interest on credit card purchases, according to the Federal Reserve. This is the highest interest level ever.
With unemployment at a historic low and wages seeing moderate growth, one would expect retail sales to be on the rise. The most recent data showed a decline in April however. The high rates on credit cards may be preventing consumers from making big-ticket purchases. Credit card delinquencies have also spiked recently. According to the New York Fed, the first quarter saw the highest rate of delinquencies in more than seven years.