Another Fed Rate Hike Could Cost Credit Card Users $1.7 Billion Over Next 12 Months: Report
Another interest-rate hike by the Federal Reserve could cost credit card users at least $1.7 billion in added interest charges over the next 12 months, according to a new report from WalletHub.
The report, published on May 1, found that consumers will pay around $31.7 billion in extra interest charges over the next year due to the central bank’s 475 basis points in rate hikes between March 2022 and March 2023.
In addition, consumers are set to take a bigger hit to their pockets if the Fed raises interest rates by another 25 basis points on May 3, which it is widely expected to do.
Another interest-rate hike would bring the annual cost impact on consumers to $33.4 billion in total, according to WalletHub….