Over the last year, roughly 8.9% of credit card balances transitioned into delinquency, the New York Fed found.
Credit card rates top 20%At the same time, credit cards have become one of the most expensive ways to borrow money.
As the federal funds rate rose, the prime rate did, as well, and credit card rates followed suit.
"With the Fed likely to keep rates higher for longer, credit card rates should remain high for the foreseeable future," Rossman said.
What to do if you're in credit card debt
Persons:
Bankrate, Ted Rossman, Rossman
Organizations:
Federal Reserve Bank of New, New York Fed
Locations:
Federal Reserve Bank of New York