If you carry a balance on a credit card, the interest you're paying right now is close to the most expensive it has ever been.
According to data tracked by Bankrate, the average retail credit card APR has climbed above 30%, while general-purpose cards sit near record highs in the low 20s.
For anyone who remembers double-digit rates as a worst-case scenario, this is a new world.
Credit card APRs are tied to the Federal Reserve's benchmark rate, and the Fed raised that rate aggressively to fight inflation.
Even as inflation cools, card rates have barely budged.
Unlike mortgage rates, which respond quickly to market shifts, credit card APRs are sticky—they rise fast and fall slowly, if at all.
A $5,000 balance at 24% APR costs you roughly $100 in interest every month if you're only making minimum payments.
That's $1,200 a year just to stand still.
Stretch that out over the years it actually takes to pay off a minimum-payment balance, and you can end up paying thousands more than what you originally charged.
Those 30%-plus retail APRs often come with a tempting 10% or 20% discount at checkout.
But if you don't pay the full balance before the promotional window closes, the deferred interest can hit you retroactively—meaning you get charged interest on the entire original purchase, not just what's left.
First, stop treating the minimum payment as a target.
Pay as much as you can above it, and if you have multiple cards, throw extra money at the highest-APR balance first.
Second, call your issuer and ask for a lower rate.
It sounds old-fashioned, but a short phone call still works often enough to be worth ten minutes of your time.
A 0% intro APR for 15 to 21 months can let you pause interest while you attack the principal.
Just do the math on the transfer fee—usually 3% to 5%—and make sure you can clear the balance before the promo ends, because the regular APR after that can be brutal.
Finally, consider a debt consolidation loan from a credit union or an online lender.
Personal loan rates for good credit can land in the single digits or low teens, well below what most cards charge.
You're trading revolving debt for a fixed payoff schedule, which is often the psychological unlock people need.
Nonprofit credit counseling agencies offer free or low-cost sessions and can negotiate lower rates with issuers on your behalf.
The worst move is letting a balance sit untouched while 25% interest quietly eats your budget.
None of this is glamorous advice, and none of it works overnight.
But with card APRs at generational highs, the cost of doing nothing has never been higher.
Final Thoughts
A single phone call or a balance transfer could save you hundreds this year—money that's a lot better off in your pocket than your issuer's.