Credit Card Interest and Fees Reach Record High of $130 Billion

released Tuesday by the Consumer Financial Protection Bureau was part of the government watchdog’s biennial report to Congress. The breakdown: Credit card companies charged consumers more than $105 billion in interest and some $25 billion in fees last year. Overall, it was the "highest amount" recorded in the CFPB’s data history.

According to the report, the average cardholder carried $5,288 in total credit card debt at the end of 2022, up 24% from 2021 lows and marking a return to late 2019 levels. Cardholders withAmong major credit card issuers, 82% of total debt was revolving — meaning that consumers were carrying a balance into the next month in 2022. Only 18% of consumers surveyed said they were able to pay off their full balances by their due date, the CFPB noted.

Nearly 10% of credit card users found themselves in "persistent debt," the CFPB said in the release, meaning they were charged more in interest and fees each year than what they paid toward their principal.The minimum payment for revolving accounts increased to $102 for general purposes cards, up from $95 the year prior. Meanwhile, folks with private-label cards faced a minimum payment of $69, up from $66 in 2021.

Companies currently charge up to $41 for each missed payment. Under the proposed rule, late fees would be lowered to $8 and the automatic annual inflation adjustment would be eliminated. The proposed rule would also ban late fees above 25% of the consumer's required payment.

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