Forbes: Americans paid $104 BILLION in credit card debt interest in the past year [View all]

[ansible]

Credit card debt is not cheap. At 15.5%, the average interest rate is up 300 basis points over the past five years. Despite the increasing cost of credit card debt, American consumers continue to borrow. Total revolving debt is now at $1.04 trillion, surpassing the 2008 peak. MagnifyMoney (where I work) ran the numbers, and credit card borrowers have paid $104 billion in credit card interest and fees over the last twelve months alone. That is up 11% from the prior year, 35% over the last five years and shows no signs of slowing.

Debt will only become more expensive as the Federal Reserve continues to increase interest rates. Most credit card contracts have variable interest rates tied to the prime rate. The prime rate is almost directly correlated to the federal funds rate, as this data from the St. Louis Fed demonstrates. Interest is calculated daily on most credit card contracts, which means that when the Federal Reserve increases its target federal funds rate, people with credit card debt will feel the consequences almost immediately.

https://www.forbes.com/sites/nickclements/2018/08/16/americans-paid-104-billion-in-credit-card-interest/#7aa63f1b611a