Nearly half<\/a> of American households have credit card debt and pay more than 20% in interest, on average, on their revolving balances \u2014 making credit cards one of the most expensive ways to borrow money.<\/p>\n\u201cFor millions of American households, credit card debt represents their highest-cost debt by a wide margin,\u201d said Ted Rossman, senior industry analyst at Bankrate.\u00a0<\/p>\n
Since most\u00a0credit cards\u00a0have a variable rate, there\u2019s a direct connection to the Fed\u2019s benchmark. When the Fed cuts rates, the prime rate lowers, too, and the interest rate on that credit card debt is likely to follow within a billing cycle or two.<\/p>\n
And yet, credit card APRs aren\u2019t falling much at all.<\/p>\n<\/div>\n