Interest rates on credit cards are at a high of 20.78%, compared to 16% in 2022|Chris Potter|CC BY 2.0

The Federal Reserve is expected to lower interest rates soon, which could help consumers struggling with credit card debt. Interest rates for these cards are at a high of 20.78%, compared to 16% in 2022.

Rates are the highest for store-brand credit cards at 30.45%.

High debts = Higher delinquencies
Credit card delinquencies are also rising, with Gen Zs hit the hardest as they balance escalating living costs and student loan burdens.

Lower rates would mean people could pay less interest on their credit card balances, but it wouldn’t be a huge change right away. Experts believe a significant difference would be visible in a year if the Fed continuously cuts rates.