Record High Credit Card Rates Reach 'Loan Shark' Territory, Warns Advisor

Credit card interest rates have reached record highs, with the average APR hitting 20.68% in May, according to Federal Reserve data. While some argue that rates are not yet in "loan shark" territory compared to payday loans, credit cards still charge significantly higher interest rates than other mainstream consumer debts. The rising rates can have a devastating snowball effect, especially for those carrying balances from month to month. Total credit card debt has surpassed $1 trillion, and delinquency rates among cardholders have stabilized. However, the resumption of federal student loan payments in October, combined with high credit card balances, will pose financial challenges for many households.