How much interest will you pay on your holiday shopping debt?

MEMPHIS, TENN. — If you take on $1,000 in debt this holiday season, paying it off will cost you much more now than a year ago.

What is APR?

Let’s say you have credit card debt. Companies like Capital One, Chase or American Express will charge you interest based on the card’s annual percentage rate (APR).

The average credit card APR (annual percentage rate) is 19.04%, which is the highest it’s been in at least three decades, according to

$1,000 debt on a 19.04% APR

Months to pay off:1 month6 months12 months
Debt plus interest:$1,015$1,056$1,106

What if you took out a credit card from a store like Target, Kohl’s or Best Buy? The APR is much higher. According to, the average interest rate for retail cards is 26.72%.

$1,000 debt on 26.72% APR

Months to pay off:1 month6 months12 months
Debt plus interest:$1,022$1,079$1,150

Shoppers told FOX13 that they worry about taking on debt this holiday season. Some said they would avoid using credit cards for fear that the interest rates would be too high.

“It’s just ridiculous,” said Dustin Mohammed. “It’s the result of inflation.”

Diamond Person said she didn’t think shoppers were aware that they might have to pay that much in interest on $1,000 of debt.

“No way, I wasn’t,” she said. “I’m a huge shopper.”

Andre McClendon called it “mind-blowing.”

“My parents were like, ‘Stay away from credit cards,’” he said.

Paying off debt

If you need to pay off debt, you can use this calculator to determine exactly how much you will need to pay at your current APR.

One financial advisor told FOX that it’s more important than ever to budget. Interest rates may be high, but she said families can still enjoy the holiday season.

“Do not allow the state of the economy to stress you out,” said LaTina Benson, the founder of Moore Financial Services. “It’s not permanent. It’s a cycle.”

She recommended that families plan in advance how to live within their means.

“Delay is not denial,” she said. “If you are accumulating a lot of debt, you’re going to pay more interest on it.”