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I don't know if the article references credit card interest rates, but I think it's worth also including in the discussion. The graph on this page illustrates

I don't know if the article references credit card interest rates, but I think it's worth also including in the discussion. The graph on this page illustrates how consumer credit card interest rates have skyrocketed, and how obscenely high it is relative to the Prime rate. https://wallethub.com/edu/cc/historical-credit-card-interest-rates/25577 https://wallethub.com/edu/cc/historical-credit-card-interest... I seem to recall that some years back the credit card interest rates were capped at a much lower rate than they are now. Where this would lead us shouldn't be a surprise to anyone. And at a general level, many current systems in the US are on a clearly unsustainable trajectory. However this collapses, it's going to be really messy.

standardUser 2y ago
Were standard credit card interest rates ever much below 20%? I think 20-25% has been the normal range for 20+ years (since I've had credit cards), though laws like the one passed under Obama do reign in the banks a little in terms of how brutally they can destroy a delinquent customers livelihood (like limiting default rates and banning other creditors from charging default rates when you default with one creditor). I always check out the balance transfer offers I receive and use that as a gauge for how cheaply creditors are willing to extend credit. Even with the prime rate jumping up in recent years, you can still get the same 12 months at 0% interest with a 4-5% transfer fee. There was a time during the low-rate era where the average was closer to 18 months and 3% fees, whereas the last few years have leaned towards 9 months and 5%. But the variance has been pretty tame.
- bobmcnamara 2y ago
  Yes. They were lower on average: https://www.consumerfinance.gov/about-us/blog/credit-card-interest-rate-margins-at-all-time-high/ https://www.consumerfinance.gov/about-us/blog/credit-card-in...

standardUser 2y ago

Were standard credit card interest rates ever much below 20%? I think 20-25% has been the normal range for 20+ years (since I've had credit cards), though laws like the one passed under Obama do reign in the banks a little in terms of how brutally they can destroy a delinquent customers livelihood (like limiting default rates and banning other creditors from charging default rates when you default with one creditor). I always check out the balance transfer offers I receive and use that as a gauge for how cheaply creditors are willing to extend credit. Even with the prime rate jumping up in recent years, you can still get the same 12 months at 0% interest with a 4-5% transfer fee. There was a time during the low-rate era where the average was closer to 18 months and 3% fees, whereas the last few years have leaned towards 9 months and 5%. But the variance has been pretty tame.

bobmcnamara 2y ago
Yes. They were lower on average: https://www.consumerfinance.gov/about-us/blog/credit-card-interest-rate-margins-at-all-time-high/ https://www.consumerfinance.gov/about-us/blog/credit-card-in...