US credit card interest rates hit 25-year high

[RicHowe]

US consumers are paying higher interest rates on their credit card balances than they have in more than a quarter-century, and the Federal Reserve’s rate cuts are no guarantee that they will receive much relief.

Financial Times Article

[Anonymous]

Do these people not know about 0% BT offers? I just cannot fathom why a person would continue to pay such high interest rates on considerably high balances. And only pay the minimum payment on top of it.  

I understand the myriad of reason why people are forced to carry a balance, but at least be smart about it. Spending like there's no tomorrow, when there actually is. Doesn't work so well. And once you get bogged down in CC debt, it will be come even more difficult to get more credit.

Causing a cascade of events.

[Anonymous]

Day after the latest Federal Reserve Rate adjustment, my US Bank statement cut and they lowered the APR 0.25%! Was blown away and I will take it ...

[OmarR]

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@Anonymous wrote:

Do these people not know about 0% BT offers? I just cannot fathom why a person would continue to pay such high interest rates on considerably high balances.

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I think you answered your own question:

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@Anonymous wrote:

Spending like there's no tomorrow, when there actually is. Doesn't work so well. And once you get bogged down in CC debt, it will be come even more difficult to get more credit. Causing a cascade of events.

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Alot of these people are so far down the rabbit hole that they are hopeless. Either maxed out or almost maxed out on current cards, late payments, etc. so no BT offers with their current cards. Any new cards are a denial, or a toy limit SL.

[iv]

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@Anonymous wrote:
Day after the latest Federal Reserve Rate adjustment, my US Bank statement cut and they lowered the APR 0.25%! Was blown away and I will take it ...

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Well... yeah?

That's how standard variable-rates work... Prime+X%

Prime drops, they drop. Prime rises, they rise.

[Anonymous]

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@iv wrote:

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@Anonymous wrote:
Day after the latest Federal Reserve Rate adjustment, my US Bank statement cut and they lowered the APR 0.25%! Was blown away and I will take it ...

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Well... yeah?

That's how standard variable-rates work... Prime+X%

Prime drops, they drop. Prime rises, they rise.

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My purpose in writing this post was to call out the speed at which a lender implemented the change! I have been around the credit world long enough to more than understand fixed and variable rates. Comments in other posts around the Forum were in wonder of how some lenders would change the rates. I was following so people knew about one lender. Reminder that friendly, respectful posts are the standard on the MyFico Forum.

[Anonymous]

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@Anonymous wrote:
Day after the latest Federal Reserve Rate adjustment, my US Bank statement cut and they lowered the APR 0.25%! Was blown away and I will take it ...

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That's good to know. I just assumed it would always be  'quick to raise, slow to lower' with most banks.

I just checked my Citi Costco Visa card rate this morning, and it has been lowered from 17.49 to 17.24. I don't know exactly when that happened, but at least it didn't take them as long as 60 days, which they could do if they wanted.

[iv]

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@Anonymous wrote:

My purpose in writing this post was to call out the speed at which a lender implemented the change! I have been around the credit world long enough to more than understand fixed and variable rates. Comments in other posts around the Forum were in wonder of how some lenders would change the rates. I was following so people knew about one lender. Reminder that friendly, respectful posts are the standard on the MyFico Forum.

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My apologies - I read "blown away" by "0.25% drop" as sarcasm, not a comment on the timing of the drop.

Your point is a valid observation, sorry about that.