Credit Card Debt Hits $1 Trillion as Lawmakers Debate Rate Caps

Total credit card debt topped $1 trillion in Q2 2023, the highest ever. Average interest rates are over 21%, also a record high.

Some lawmakers have proposed capping rates at 18% and lowering fees to provide relief to consumers. But it's unclear if these measures will pass.

Consumers have leaned more on cards for purchases as inflation has risen. There are 70 million more open card accounts now vs 2019.

Past legislative proposals have tried capping rates around 15-36%. Industry resists federal caps, citing potential to restrict credit access.

Advice Pay bill in full each month to make your rate 0%. Minimum payments mean debt and interest can linger for decades.