Interactive: What Interest Rate Are People Paying On Their Credit Cards?
Answer: Lots of different interest rates…
From NPR.org (if you go to the link, there is a interactive with a slider bar that allows you to see how the distribution of interest rates has changed from 2001-2013):
Ask students to provide several takeaways in analyzing this chart. which might include…
- Wide variation in interest rates on credit cards (from 0% to 30%). Why? Explain importance of credit scores.
- Significant number (6 million) paying 0%. Be sure to explain the concept of 0% APR.
- Most paying between 8%-20%.
- Large number are paying 22-30%. Why do you think card companies charge these higher rates to consumers?
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.