CHICOPEE, Mass. (WWLP) – Banks are still raising their interest rates even as the Federal Reserve signals future rate cuts.
Americans are facing quite the costs when it comes to credit cards. According to Bankrate, the average credit card interest rate reached 21.5% in May.
The company says this is the highest since the Federal Reserve began tracking the data in 1994. Trans Union reports that consumers are also carrying larger balances with the average reaching $6,300 in the second quarter. This is a 31% jump from 2021.
22News spoke with one Massachusetts resident about these high rates and this is what she had to say. “It is very hard for people who are struggling, especially fixed-income people or who have big families because food prices are so high so people are charging a lot more than before covid and they are putting everything on their credit card so it is very hard for them to pay it off and of course, it is very challenging to live in these days,” says Vilija Capistran.
Banks are implementing these new fees and higher rates in response to a proposed federal cap on late fees. This leaves many people concerned. The average credit card interest rate reached 21.5% in May And the Federal Reserve is talking about those future rate cuts, many Americans are really hoping that it will actually go down because things are already expensive as is.