Households Spend $904 a Year on Credit Card Interest Alone

By:
Chris Gaetano
Published Date:
Dec 14, 2017
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Data from the Federal Reserve Bank of New York and the U.S. Census Bureau finds that credit card interest costs the average American $904 a year, assuming a 14.87 percent rate, according to CNN Money. They also carry an average of $15,654 of total credit card debt. Although credit card debt is small compared to things like mortgage debt or student loans, it's much more widespread as many more people have credit card accounts. A major factor for the rise in credit card debt, according to CNN, has been the cost of living outpacing incomes. While incomes grew in 2016 by 3.2 percent, this gain has not been evenly distributed across the board. The bottom 80 percent of households had incomes in 2016 just at or below those of 2007; by contrast, those in the top five percent have incomes 8.7 percent higher than they did in the same time period. 

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