Part 4/8:
A significant concern raised by Admeter is not only the volume of credit available but also the rising interest rates associated with it. In the wake of the Federal Reserve’s recent rate cuts, banking institutions continued to hike their Annual Percentage Rates (APRs) on credit cards rather than passing savings onto consumers. This key differentiation between savings and borrowing costs has left many households vulnerable.
Admeter highlights how consumer behavior during the holiday shopping season has been heavily influenced by this credit availability. While consumers may react to immediate opportunities for spending, they often overlook the long-term consequences of their borrowing habits—handling high-interest debts that they may struggle to repay.