The Federal Reserve is set to once again raise its benchmark interest rate on Wednesday, and while markets are bracing for impact, those with credit card debt are already feeling the pinch. 
Sixty percent of credit card holders who carry monthly debt have been in the red for at least a year, according to a new report. That's a 10 percent jump from 2021 and the company said the average credit card interest rate is now a record 18.17 percent.
But it won’t stay there much longer. As lenders and consumers await news from the Fed, most card issuers appear to have paused making changes to new card offers.
As a result, the national average credit card APR lingered at an all-time high on Wednesday, according to’s latest Weekly Rate Report, after steadily climbing for 20 straight weeks this summer and spring.
In addition, the report found that 48 percent of cardholders carry debt month-to-month, making them more susceptible to increases in cards' annual percentage rates (APRs)., which is affiliated with research firm Bankrate, found that emergency expenses and day-to-day expenses are both to blame. The report found that 46 percent of respondents who carry monthly debt cited emergency/unexpected costs, such as medical bills, home repairs, and car repairs, while 24 percent blamed day-to-day costs, such as utility bills, child care, and groceries. 
While credit card balances are still down 4 percent from pre-pandemic levels, there are other signs that they are beginning to move upward. The Federal Reserve Bank of New York reported that balances increased $46 billion in the second  quarter of this year. That's a 13 percent jump, and the largest in more than 20 years. 
This comes amid a broader uptick in mortgage and auto loan debt as well. 
"While many people are doing better, sadly, many others are doing worse," said Ted Rossman, a senior industry analyst for Bankrate. "If you’re struggling with credit card debt, my top tip is to sign up for a 0 percent balance transfer card. These promotions last as long as 21 months. Low-rate personal loans and nonprofit credit counseling can also be useful debt payoff strategies."