Some people pay off their credit cards at the end of each month. They use the cards as a payment method and collect points and rewards, and never have to pay any interest. For other users, interest can be sky high &mdash; way higher than what would be expected simply based on a user's credit or default risk. Why is this? And how do credit card companies get away with charging interest at these levels? On this episode, we speak with Itamar Dreschsler, a finance professor at Wharton, who recently co-authored a piece titled <a href="https://libertystreeteconomics.newyorkfed.org/2025/03/why-are-credit-card-rates-so-high/" data-prosemirror-content-type="mark" data-prosemirror-mark-name="link">Why Are Credit Card Rates so High?</a> Drechsler walks us through the costs of running a credit card operation and explains what borrowers are really paying for. Read more: <a href="https://www.bloomberg.com/news/articles/2025-11-25/us-consumer-confidence-falls-by-most-since-april-on-outlook?utm_medium=referral&utm_source=podcast&utm_campaign=odd_lots&utm_content=article" data-prosemirror-content-type="mark" data-prosemirror-mark-name="link">US Consumer Confidence Falls by Most Since April on Economy</a> <a href="https://www.bloomberg.com/news/articles/2025-11-25/bank-of-america-warns-of-mounting-credit-risks-as-gambling-booms?utm_medium=referral&utm_source=podcast&utm_campaign=odd_lots&utm_content=article" data-prosemirror-content-type="mark" data-prosemirror-mark-name="link">Gambling, Prediction Markets Create New Credit Risks, BofA Warns</a> Only <a href="http://Bloomberg.com" data-inline-card="" data-card-data="">http://Bloomberg.com</a> subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at&nbsp; <a href="https://www.bloomberg.com/subscriptions/oddlots?in_source=oddlotspodcast" data-prosemirror-content-type="mark" data-prosemirror-mark-name="link">bloomberg.com/subscriptions/oddlots</a>See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.

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