Why Plastic Credit Is So Costly

Of all the ways to borrow money, few are more expensive than running up a big bill on a credit card. In most areas of the U.S., the cards issued by banks, department stores and oil companies typically carry an annual Interest rate of 18% to 21% on unpaid balances. A few lenders at the high end of this range have now decided to give their customers a bit of relief. The Bank of New York, for example, said last week that starting May 1 the rate it charges Visa and MasterCard holders will...