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Credit Card Interest Is Paid With After-Tax Pay – Count Your Balance’s Pre-Tax Cost

Source: Money Crashers · Oct 19, 2026 11:45 UTC

Aerial view of refinery storage tanks near Houston on the Gulf coast — File photo Carol M. Highsmith / Library of Congress · Public domain · Source

The Quick Take

For someone in that bracket with an average balance, the true cost runs past $2,000 a year. Card accounts that were charged interest paid an average rate of 22.15% in May 2026, according to the Federal Reserve. TransUnion put average... Source

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