4. Credit Card and Debt Payments: Still Near Record Highs

Borrowing costs are another area where Americans continue to feel pressure. Credit card interest rates surged during the Federal Reserve’s aggressive rate-hiking campaign in 2022–2024, and while rates have begun to edge downward, they remain historically high.

According to the Federal Reserve’s G.19 consumer credit report, the average interest rate on commercial bank credit cards is near 21%. For accounts that accrue interest, rates are closer to 23%. These figures are only slightly below recent record highs.

This means that consumers who carry revolving balances are still paying heavily for the privilege of borrowing. Even with small decreases in rates from 2024 peaks, interest charges remain painful, especially for households relying on credit to cover essential expenses such as food, medical bills, and car repairs.

LendingTree reports that while average APRs have dipped slightly as the Fed has signaled possible rate cuts, relief is moving slowly through the financial system. Many cardholders have seen marginal drops in interest charges, but the overall cost of servicing debt remains high.

The result is a widening financial divide. Households with strong credit and low debt loads may benefit from improved loan terms. But families already struggling with high balances continue to face steep monthly payments, slowing their ability to pay down principal.

For Trump’s economic message, this represents a challenge. While inflation has cooled, the lingering hangover from high interest rates still affects millions of consumers who took on debt during tougher times.