Credit card debt hits $1.2 trillion as interest rates near 20 percent, driven by Federal Reserve inflation fights

Americans carry more than $1.2 trillion in credit card debt, with the average interest rate now close to 20 percent—nearly double the rate from 2010. The source argues that much of this debt stems not from discretionary spending but from essential expenses: car repairs, medical bills, and groceries. According to the analysis, Federal Reserve rate increases designed to combat inflation have contributed to the surge in credit card interest rates, creating a compounding effect where minimum payments leave balances growing for years.