Question

Based on research conducted by the Federal Reserve Survey of Consumer Finances,

a) 15%

b) 35%

c) 55%

d) 75% of consumers aged 18 and older have a credit card.

Answer 1

55% of consumers aged 18 and over have a credit card. American cardholders pay billions in interest and fees annually. Credit card interest rates typically range from 12% to 18%.

Step-by-step explanation:

Based on research conducted by the Federal Reserve Survey of Consumer Finances, 55% of consumers aged 18 and older have a credit card. Credit cards are financial tools that allow individuals to borrow money from the card's issuer, with the agreement to pay back the borrowed amount plus any accrued interest. The typical interest rate on credit card borrowing can range from 12% to 18% per year. As of the latest data in 2021, there were almost 200 million American cardholders with approximately $807 billion in outstanding credit card debts. In the market for borrowing with credit cards, Americans collectively pay tens of billions of dollars annually in interest, plus additional fees associated with credit card usage and potential late payments.