Retail credit cards, once a shopper’s delight, have turned into a financial predicament. Bankrate’s latest retail card survey reveals that in 2023, the average annual percentage rate (APR) on these cards has reached an all-time high of 28.93%, up from 26.72% in 2022. This figure significantly surpasses the overall credit card APR average of 21.19%. The root of the problem lies in the Federal Reserve’s ongoing interest rate hikes, indirectly increasing borrowing costs for consumers and emboldening credit card companies to push their rates higher.
Retail credit cards are often issued by specific retailers or in partnership with major banks to offer rewards and discounts for shoppers. However, they can quickly become a financial burden for those who carry balances.
To illustrate the real impact of these soaring APRs, Ted Rossman, Senior Industry Analyst at Bankrate.com, provides an alarming example: If a cardholder finances a $1,000 purchase with an average retail card APR of 28.93% and pays only the minimum, they’d owe $715 and remain in debt for an astonishing 50 months.
Amidst these growing APRs and rising credit card debt, McCarthy Law steps in as a solution. They focus on negotiating with unsecured creditors, securing significant debt reductions and consolidating payments into one manageable sum. As a law firm, they can also provide legal defense when clients face creditor lawsuits, ensuring comprehensive protection and expertise.
In a world of skyrocketing APRs, McCarthy Law combines compassion with knowledge to help individuals regain their financial stability. Their mission is clear: to be a fierce advocate against creditors and a trusted ally for clients seeking financial freedom. Don’t let high APRs hold you back; take the first step toward financial recovery by contacting McCarthy Law.