Total credit card debt crossed $1 trillion mark
A new report reveals that Americans paid a total of $130 billion in interest and fees on credit cards in 2022. The report, issued by the Consumer Financial Protection Bureau (CFPB) also showed total credit card debt surpassed $1 trillion for the first time.
The federal regulatory body said it plans to take action to promote increased competition and reduce consumer costs in the credit card market.
“Last year, Americans paid $130 billion in interest and fees on their credit cards," said CFPB Director Rohit Chopra. "With credit card debt crossing the trillion dollar mark, we will be working to prevent bait-and-switch tactics when it comes to rewards and to increase refinancing activity so consumers can get lower rates.”
The report notes that the average Annual Percentage Rate (APR) for interest is 15.4%, well above what the CFPB says credit card companies need to charge to be profitable.
Additionally, the report notes that of total fees paid, $14.5 billion were paid in late fees.
The average card holder has a balance of $5300 in credit card debt.