BOSTON—Credit card interest rates hit a 25-year high in 2019 as lenders increased their rates.
Mercator expects momentum to continue through 2023 with interest rates on plastic averaging 17.10%. At 17.10% and with a prime rate at 6.5% -- the interest spread will likely be 10.6% in 2023, noted the Payments Journal.
Revolving debt hit historic highs at $1.03 trillion in 2019. Revolving Debt by year: 2004—$781 billion, 2008—$988 billion, 2011—$815 billion, 2019—$1.03 trillion.
Mercator expects revolving debt to climb to $1.117 trillion by 2023, Payments Journal noted.