Let's swipe into today's topic: the cost of carrying a balance on your credit card.

 Answer: The average APR for all accounts is 21.67%!

Question:

• If you had a credit card with a high interest rate, what strategies could you use to avoid paying more in interest over time?
• What factors do you think contribute to the interest rates that credit card companies offer to their customers?
• How does understanding credit card interest rates influence the way you might use credit cards in the future?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Lending Tree):

"It’s important to distinguish between average assessed interest and interest across all credit card accounts because nearly half of active credit cardholders carry a balance. The average APR for all accounts in the third quarter of 2024 is 21.76%. That’s up from the second quarter of 2024, when the average was 21.51%.

About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.

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