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> historically high APRs Interest rates are NOT historically high. In fact they are basically right at "average". The rates for the last five years were histor
by vidanay 2y ago
> historically high APRs
Interest rates are NOT historically high. In fact they are basically right at "average". The rates for the last five years were historically LOW.
- jeffbee 2y agoI think credit card APRs specifically are off the charts. Other forms of credit (mortgages etc) not so much. Credit card issuers are commanding a 15% margin over prime rate, while charge-off i.e. the risk to the credit issuer is around 3%, near all-time lows. In other words credit issuers are raking in record unearned profits. This FRED series only goes back 30 years but if you look at the Fed Statistical Abstract consumer credit tables, APRs in 1985 were < 19% and in 1980 were < 18% so 21% and higher are very exceptional. https://fred.stlouisfed.org/series/TERMCBCCALLNS https://fred.stlouisfed.org/series/TERMCBCCALLNS
- washedup 2y agoCredit Card APRs, specifically, is what I was mentioning. They are historically high.
- vidanay 2y agoHoly shit...I hadn't realized credit card rates have become that high!