Credit Card Companies Increasing "Excess" Interest Rates

A government report released by the Consumer Financial Protection Bureau (CFPB) reveals that credit card companies are raising interest rates to record highs, leading to increased profits, as reported by J.J. McCorvey for NBC News.

The share of annual percentage rates (APR) charged by credit card companies beyond their lending costs has nearly doubled in the past decade.

The analysis found that the share of annual percentage rates (APR) charged by credit card companies beyond their lending costs has nearly doubled in the past decade. This surge in rates has cost borrowers an estimated $25 billion in 2023 alone.

The average credit card APR has risen from 12.9% in late 2013 to 22.8% in 2023, reaching its highest level since data collection began.

Additionally, the average APR margin, representing the interest rates charged beyond the "prime" rate, has increased to 14.3% from 9.6% a decade ago. This rise in rates could push consumers into persistent debt and delinquency, according to the report.s

WEEKLY FEATURE : Jose Mari Chan And The Christmas Anthem