Americans are carrying more than $1.2 trillion in credit card debt, and for a lot of people, it’s not from splurging. It’s everyday stuff: car repairs, medical bills, groceries. And if you only make the minimum payment, that debt can grow exponentially, sticking around for years.
The average credit card interest rate today is close to 20%, nearly doubling since 2010. So what’s driving these high rates?
Part of it is the broader economy. When the Federal Reserve raises rates to fight inflation, credit card APRs usually go up too. But that’s not the whole story.
Credit cards are unsecured loans, meaning there’s no house or car to repossess if you don’t pay. And Americans have become more and more reliant on credit cards as wages stagnate and health care costs continue to rise.
Read more about how credit card interest rates are impacting everyone:
Why did my interest rate go up on my credit card? | Bankrate https://www.bankrate.com/credit-cards/news/what-to-do-after-card-apr-increase/
Why are credit card interest rates so high? | Nerd Wallet https://www.nerdwallet.com/credit-cards/learn/credit-card-interest-rates-high
Why is your credit card rate so high? | Wharton https://knowledge.wharton.upenn.edu/article/why-is-your-credit-card-rate-so-high/
This video is presented by Klarna. Klarna doesn’t have a say in our editorial decisions, but they make videos like this one possible.
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Got as far as 1:28 and had to stop. Lost all credibility with the sponsor.
lol this video is sponsored by… Klarna?? The predatory company with high interest rates?? lol
Dave Ramsey . . .
If Congress would cap their spending and thus our taxes, people wouldn't be putting so much on credit cards . . .
only got as far as the extremely tone deaf klarna ad
Like a video lamenting opioid addiction but sponsored by a pharmaceutical company
Wait. What the.. Presented by Klarna? Is this a joke?
In India APR is around 45%
No way this is sponsored by Klarna i thought it was a joke
If all Americans didn't have credit cards, we would see just how poor Americans would become, the capitalist system would collapse, basic wages wouldn't be enough to cover daily living expenses, and education would be no different from that of less developed countries. The "I owe you" system is like a band-aid to alleviate poverty.
Klarna?? Bruh..????
who greenlit the ad?