American Credit Card Debt Soars to Record Highs in 2022 as Interest Rates Surge

American cardholders paid a record $130 billion in interest and fees in 2022, per a CFPB report. This was the highest amount ever recorded.

With rising debt and interest rates, more Americans struggled to pay down credit card balances. Nearly 10% faced "persistent debt."

Average APRs on credit cards jumped over 2 percentage points in 2022 due to Fed rate hikes. Minimum payments also increased.

Those with the lowest credit scores were least able to keep up with higher fees and rates.

To provide relief, the CFPB has proposed rules to lower late fees and make it easier for consumers to switch banks.