Why now is a crucial time to pay off your credit card debt

For Americans who lacked savings prior to the pandemic, financial stress is rising. A combination of inflation, increased interest rates, and the end of pandemic-tied relief, such as the moratorium on student loan payments, has led to record credit card debt, experts say.

In the third quarter of 2023, Americans held more than $1.05 trillion on their credit cards, and the average interest rate on a given credit card is now roughly 21.5%, the highest it’s been since started tracking rates in 1994. A recent report from credit rating company Moody’s found credit card delinquencies are now well above 2019, or pre-pandemic levels.