Record High Retail Credit Card Rates: How to Choose the Best Interest Rates and Avoid Carrying a Balance

The average annual percentage rate (APR) for retail credit cards has reached a record high of 28.93%, making it more expensive for shoppers who plan to use store cards during the holiday season. This rate is well above the national average of 20.71%. Opening a store-only credit card can be beneficial if you can pay off the balance in full and on time, especially if the store offers perks or discounts. However, carrying a balance on these cards can lead to high interest charges. Americans are drowning in credit card debt due to rising borrowing costs and practical reasons such as emergency expenses and day-to-day expenses outpacing their paychecks. It is important to prioritize spending, calculate take-home pay, and consider credit counseling if struggling with credit card payments.