Here’s how much Americans are paying in credit card fees
As interest rates are rising, so are credit card rates.
According to Magnify Money, which analyzed data from the Federal Deposit Insurance Corporation, Americans paid about $104 billion in interest and fees over the past year, which is up 11% from the year prior. It is also up 35% from 2013, when consumers paid $74.6 billion.
Magnify Money expects the amount Americans pay in interest and credit card fees will rise by 10% in the year ending March 31, 2019, totaling more than $110 billion. The group also said credit card rates are the most sensitive to interest rate increases, rising twice as fast as mortgage rates.
Meanwhile, household debt levels rose by $63 billion in the first quarter of this year, to $13.21 trillion, according to data from the Federal Reserve Bank of New York. Credit card debt specifically totaled $815 billion, up $51 billion over the year prior.
The Federal Reserve has raised interest rates seven times since the end of 2015 and plans to do so two more times before January, by a quarter percentage point each time. Gradual increases are expected to continue through 2019.