Credit card debt at record high as US Fed Reserve raises rates again
As the Federal Reserve raises 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.
The Fed announced Wednesday that it would increase rates another quarter of a point.
With inflation still high, people are leaning on their credit cards more for everyday purchases.
It's the economy, inflation, gas prices, and food costs, said Lance DeJesus, 46, kitchen manager at the Golden Corral in York, Pennsylvania.
A year ago, you could go to the grocery store with a hundred bucks and come out with a bunch of bags. Now, I come out with just one bag.
DeJesus said he carries a credit card balance of roughly $2,600 from month to month over several cards, which have interest rates from 16.99% to 21.99%.
Early in the pandemic, when DeJes