Final answer:
Today, Americans carry a collective credit card debt of: approximately $807 billion as of May 2021. With an average interest rate of 15%, this leads to tens of billions of dollars paid annually in interest and additional fees by cardholders.
Step-by-step explanation:
The question posed pertains to the collective credit card debt that Americans hold. As of May 2021, it was reported that Americans had about $807 billion outstanding in credit card debts.
With approximately 200 million credit card holders in the country, credit cards typically carry an interest rate ranging from 12% to 18% annually.
Considering the average annual interest rate of 15%, American families are faced with paying tens of billions of dollars in yearly interest, in addition to various fees associated with credit card use, such as basic card fees and late payment fees.
It's noteworthy to mention that credit card usage comes with a grace period that allows borrowers to repay their loans without incurring interest; however, once this period has passed, interest will accrue.
By 2021, over 45% of American families were reported to carry some level of credit card debt, showcasing the widespread reliance on credit for financial management within the United States.
The complete question is: Today, Americans carry a collective credit card debt of: