The Federal Reserve's most recent quarterly consumer credit report shows average credit card annual percentage rates remaining near multi-year highs, according to data published on the Federal Reserve's official statistical release page.
Elevated average APRs mean the cost of carrying a revolving balance continues to significantly outweigh the value of any cash back earned on that same spending, a gap that consumer finance educators have repeatedly highlighted.
The report is consistent with broader trends tracked by the Consumer Financial Protection Bureau, which has published guidance reminding consumers that reward optimization should never take priority over paying down high-interest revolving debt.
As discussed in our article on cash back and debt, even a generous 5% cash back rate is overwhelmed many times over by typical double-digit APRs on a carried balance.
Consumer advocates quoted in coverage of the report continue to recommend that cardholders prioritize full monthly payoff, treating cash back strictly as a bonus on spending that would occur regardless of the reward.