“U.S. consumers paid almost 50 per cent more in credit card expenses last year than in 2020, the year before President Joe Biden took office,” said the Financial Times in a report this week.
According to the New York Post, that figure is based off information provided by banks to the Federal Deposit Insurance Corp.
Earlier this month, WalletHub released data that found 59% of people say they have more credit card debt than they did 12 months ago. Most people (54%) said inflation contributed to their credit card debt.
In the wake of the COVID-19 pandemic, inflation has been up for some time in the U.S. Per the most recent report from the U.S. Bureau of Labor Statistics, inflation rose again just last month. While the Federal Reserve Bank aimed to conquer inflation with interest rate hikes, that method also made credit card payments more expensive for Americans.
“More than 4 in 5 people with credit card debt say they will try to lower the interest rate on their debt in 2024,” said WalletHub. Looking to the future, the personal finance website said that 84% of people with credit card debt aim to get rid of their debt this year.
President Joe Biden also said in early March that his administration would take new steps to get rid of credit card late fees. That move is projected to save families $10 billion annually.