When could credit card interest rates become affordable again? Experts as hard as star-news.press/wp

Wearing any amount of debt on credit card is incredibly expensive, and that is in a large part How big credit card rates In today’s economic landscape. The average interest rate of the credit card in the US is currently 21.37%, only slightly lower than the embodied high of 22.8% at the end of 2023. years. Today’s high carton rates are almost twice the twice the rate of 12.9% in 2013. Years.

Of course, Larger credit card rates Having consequences for cardowners, namely in the form of higher balance sheets that are harder to fit into the already stretching budget. Credit card debt per household increased 3.5% in the third quarter of 2024, According to experiencedOn average reaching $ 6,730. Credit card Delinquency of payment over 90 days They also recently increased, an increase in 8.5% in the first quarter of 2025. years to hit 12.3%, the highest rate since 2011. years.

And, while cardholders probably hope the interest on their card debt will be soon accessible, decisive When credit card speeds can fall It can be a ticklish proposal. Federal reserves continue to maintain a cautious position on the reduction of interest rates, and after the federal funds at its encounter, Fed did not offer strong insight in the event that the speed reduction will take place. The Committee seems to be the intention of monitoring key economic indicators before it goes in any direction.

Without a clear signal from the FED, we asked the question of experts: When could credit card interest rates become favorable again? Here’s what we found.

Learn how you start in solving credit card problems today.

When could credit card interest rates become affordable again?

Federal reserve that cuts its reference rate could help reduce credit card rates, experts say. However, numerous other elements enter the game with the card setting speed.

“The interest rates of credit cards range a slower pace of the Federation price. Even if the FED starts the cutting rates, the borrowers, such as the risk of default margins,” says Craig Toberman, a partner in Tobermun Becker wealth.

In other words, even if the federal resources rate descend later this year or 2026. years, it will not automatically bring the APRS credit cards. Card publishers will see real improvements in delinquency and other metric rates before lowering ages on credit cards. It seems unlikely in the near future, given the recent jump in delinquencies and Inflation rates remaining above the target rate of Fed.

“Credit cards follow the short-term interest rates set by the Fed, but under the influence and consumer risk, lonnactic and default trends,” Christopher Sulpine, certified financial planner and founder Silicon Beach Finance. “In order to fell meaningfully, we should sustainably fall in the Fed Funds and improved consumer credit measurement measuring points that reduce the perceived credit risk.”

Soon lower credit card rates?

We will probably not see lower credit card rates, at least not for a while, experts say. Late card rates Absay could stay well raise well in 2026.

“We only expect a modest relief in the next six to 24 months,” Sump said. “Even if the FED-cut rates, the APRS credit cards can fly in the vicinity of the Consumer Debt and Tightened Levels and Tightened Credit Standards. For now they are high standards, especially for borrowers without excellent credit profiles.”

And with the power of the economy still vague, predicting when rates really fall can be in vain exercises.

“The only prediction is that our economy will remain unpredictable for many more months,” said Howard Castle, CPA and President Duga.com. “Until we understand again again over and over again and their influence, I wouldn’t count on rates fall.”

Explore the debt relief options for credit cards online.

How to deal with your debt while waiting for drops

If you struggle to make minimum credit card payments, the first thing you should do is call your card issuer to ask whether they offer a reduction rate of difficulty.

“If you were a good long-standing customer, you could just get a slight decline,” says the court.

Also, explore the debt repayment strategies such as debt and the snowball and debt method, which can help you to prioritize the cards first. A low interest Loans for debt consolidation and 0% of the interesting saldon of credit card transfer It can also help you reduce debt rate while cutting borrowing costs.

If you are backward or your balance continue to grow despite regular efforts to pay them, maybe it may be time to explore other debt mitigation options, such as Debt forgiveness for credit cards or a Debt consolidation program. They can help nor reducing what you owe or combine your balance in one payment, ideal with a lower interest rate.

Bottom line

Unfortunately, it does not look like credit card rates will fall in the near future. Even if the Fed reduces your reference rate, it could be a while before credit card companies follow the suit. If you are struggling to get debt on the controlled tab while you wait for lower credit card rates, focus on making debt by performing additional payments when you can keep in mind Lower costs of borrowingAlso.