Final answer:
The credit card market involves borrowing money with annual interest rates ranging from 12% to 18%, with many Americans carrying balances and incurring interest and fees.
Step-by-step explanation:
The discussion revolves around the credit card market and consumer behavior in terms of borrowing money and paying off credit card debts. Credit cards are a convenient financial tool allowing users to borrow funds from the issuer, with the expectation to pay back the borrowed amount plus interest. The typical annual interest rates range from 12% to 18%, and on average, the rate is around 15% per year. In 2021, around 200 million Americans held credit cards and collectively had approximately $807 billion in outstanding credit card debts. Despite the ability to borrow money without interest if repaid in a grace period, many Americans carry balances and incur significant amounts of interest and fees annually.