Credit card interest rates continue to rise for consumers, even as loan rates to small businesses and mortgages fall. The rates affect 381 million consumers and are expected to continue to rise. This is due primarily to the new rules that limit banking fees, and rates are now the highest in nine years, reaching 14.7%. Banks are also trying to recover losses from delinquent borrowers.
The slow economy continues to be a huge burden on the American consumer. Before the financial crisis, banks would raise rates without warning, and use many other deceptive practices to make money. New federal regulations were supposed to make it fairer for consumers, but it looks like banks have just found another way to make money. Consumers need to have more confidence in the banking industry to help the economy. As long as they feel they are being charged unfairly, or whether they believe interest rates are too high, things will not likely improve.
Simon, Ruth. “Credit Card Rates Climb.” The Wall Street Journal. 23 Aug. 2010.
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