That increase will most likely eventually be passed on to consumers, said Sean McQuay, a credit card expert at the personal finance website NerdWallet. Many households with credit card debt -- the average household carrying credit card debt has more than $16,000 -- will likely take a hit.


When the Fed raised the rate in 2015 -- the first rate hike since 2006 -- it only took about a month or two for the majority of banks that the personal finance website NerdWallet works with to change the variable APRs on their credit cards, McQuay said. They included both major banks and lesser-known ones.


The average household now pays a total of $1,292 in credit card interest per year, according to NerdWallet's research. Now that the Federal Reserve increased its rates as analysts expected, the total will rise to $1,309, NerdWallet found. Although that amount won't "break the bank," McQuay said, consumers who have debt should expect this trend of rising interest rates to continue.

Guess which inflation index the household's average credit card interest payments are included in? A: trick question... none.

Oh, and the article is written from a perspective of total ignorance that banks overall are getting more money with the interest rate rise -- not paying more themselves -- since almost no borrowing now happens in the Federal funds market. Instead, the banks simply make more in interest on their reserves parked at the Fed -- in essence, a subsidy.

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