Credit card debt is at record high as Fed weighs rate hike

As the Federal Reserve considers whether to raise interest rates again, credit card debt is already at a record high, and more people are carrying debt month to month. The Fed’s interest rate increases are meant to fight inflation, but they’ve also led to higher annual percentage rates (APRs) for people with credit card debt, which means they pay more in interest. And with inflation still high, people are leaning on their credit cards more for everyday purchases. Bankrate says the average credit card interest rate, or annual percentage rate, has reached 20.4%. That's the highest since their tracking began in the mid-1980s.