<br><div><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Credit card late fees could be lowered by Biden ‘strike force’"/><p class="gnt_ar_b_p">The nation’s mounting credit card debt threatens to swamp its savings.</p><p class="gnt_ar_b_p">More than one-third of American adults — 36% — have<a target="_blank" href="https://www.bankrate.com/banking/savings/emergency-savings-report/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> more credit card debt</a> than emergency savings, according to an annual survey by Bankrate, the personal finance site. In more than a decade of polling, the figure has never been higher.</p><p class="gnt_ar_b_p">That is one of several recent reports that show consumers falling behind on their credit cards.</p><p class="gnt_ar_b_p">Roughly half of all credit-card holders now<a target="_blank" href="https://www.bankrate.com/finance/credit-cards/credit-card-debt-survey/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> carry balances</a> from month to month, Bankrate found in another survey, up from 39% in 2021.</p><p class="gnt_ar_b_p">The average borrower holds<a target="_blank" href="https://www.transunion.com/blog/q4-2023-credit-industry-insights-report" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> $6,360 in card debt</a>, TransUnion reports, an all-time high.</p><p class="gnt_ar_b_p"><strong>Learn more:</strong> <a target="_blank" rel="noopener" data-t-l=":body nav (cc)|e|auto spike click:5|${u}" class="gnt_ar_b_a" href="https://www.usatoday.com/money/blueprint/credit-cards/best-credit-cards/">Best credit cards of 2023</a></p><p class="gnt_ar_b_p">“It’s worrisome, because credit-card rates are at record highs,” said<a target="_blank" href="https://www.bankrate.com/authors/ted-rossman/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> Ted Rossman</a>, senior industry analyst at Bankrate. “Unfortunately, we’re moving in the wrong direction on a lot of this.”</p><figure class="gnt_em gnt_em_img"><img class="gnt_em_img_i" style="height:440px" fetchpriority="high" data-g-r="lazy" src="https://www.usatoday.com/gcdn/authoring/authoring-images/2024/02/22/USAT/72703260007-usatsi-11934623.jpg?width=660&height=440&fit=crop&format=pjpg&auto=webp" srcset="https://www.usatoday.com/gcdn/authoring/authoring-images/2024/02/22/USAT/72703260007-usatsi-11934623.jpg?width=1320&height=880&fit=crop&format=pjpg&auto=webp 2x" decoding="async" alt="Credit card balances and interest rates are rising hand in hand"/></figure><h2 class="gnt_ar_b_h2">Credit card balances and interest rates are rising apace</h2><p class="gnt_ar_b_p">Card balances are rising apace with interest rates: The higher the rate, the more you must pay to bring the balance down.</p><p class="gnt_ar_b_p">The average credit card now charges<a target="_blank" href="https://wallethub.com/edu/cc/historical-credit-card-interest-rates/25577" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> 21.5% interest</a>, according to a WalletHub index. That’s the highest rate on record.</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">On top of that, Bankrate found, 43% of cardholders with debt don’t know<a target="_blank" href="https://www.bankrate.com/finance/credit-cards/more-americans-carrying-debt-and-many-dont-know-apr/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> how much interest</a> they’re paying.</p><p class="gnt_ar_b_p">Credit-card debt is rising at a time when America is struggling to save.</p><p class="gnt_ar_b_p">The personal savings rate<a target="_blank" href="https://fred.stlouisfed.org/series/PSAVERT" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> stood at 3.8%</a> in January, according to federal data, meaning that consumers set aside only a smidgen of their income as savings.</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/2024/03/10/credit-card-debt-swamps-savings/72894537007/">Read more <span>➤</span></a> </div>
