Key facts
- Credit card APRs are at a record high.
- Debt becomes more expensive even when payments are made.
The cost of debt is increasing for consumers, particularly through credit cards, even when they are actively making payments. Annual Percentage Rates (APRs) on credit cards have reached unprecedented levels. This situation implies that the interest accumulating on outstanding balances is growing at a faster rate, making it more challenging for individuals to reduce their debt principal and potentially leading to a cycle of increasing financial burden.