America’s debt load continues to rise. According to the latest Quarterly Report on Household Debt and Credit from the New York Federal Reserve, our collective debt is $13.54 trillion as of Q4 2018.
While the vast majority is mortgage debt, credit card debt topped a trillion dollars recently, and we’re compounding the problem by paying more in interest and fees on our credit card accounts.
According to MagnifyMoney, Americans paid $113.3 billion in credit card interest and fees in 2018. That’s a 12% increase over the $101 billion paid in 2017 and a 49% increase from the $76.3 billion paid in 2013. Credit card interest and fees are expected to top $122 billion in 2019.
Increased average annual percentage rates (APRs) on credit cards are partly to blame. Federal Reserve data shows that the average interest rate hit 16.86% in 201…