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Fed’s Latest Rate Hike Costs Credit Card Holders $5.1 Billion
Aggressive central bank tightening has piled on billions in additional interest costs, WalletHub finds.
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The Federal Reserve’s latest rate hike will cost Americans with outstanding credit card debt more than $5 billion in additional interest over the next 12 months, according to an estimate from personal-finance site WalletHub.
The company found that the Fed’s aggressive streak of rate increases this year has heaped about $25.6 billion in additional interest onto Americans’ yearly credit card bills. WalletHub’s calculation is based on an estimated $1.18 trillion in outstanding credit card debt for 2022, with 58% of cardholder accounts carrying balances.