According to the Federation of American Consumers, the national average for all credit card rates is 14.15, and typically ranges from around 12 percent for consumers with great credit ratings to somewhere between 16 and 21 percent for those with the lowest possible qualifying scores. However, even the average interest rate can be problematic for cardholders, FACT reported.
"Let's say that you have $5,000 in credit card debt, that your interest rate is 14.15 percent, that you cancel the card today and make payments of $75 a month," said Vicki Rolens, FACT's managing director. "It will take you nearly 11 years - 130 months, to be exact - to pay off your balance."
However, in recent months, consumers seem to have reduced the amount they've spent on their credit cards, and simultaneously increased the total amount they've paid into their balance in an attempt to reduce the stresses that come with debt.
