Why Paying Amex APR Hurts More Than You Think
Why Paying Amex APR Hurts More Than You Think
Credit cards often look convenient, but the true cost of borrowing can be staggering. American Express and other providers advertise representative APRs that shock many people — some rates go as high as 697.1% variable APR when fees and compounding are included. Let’s break down why that matters, and why some people look to alternatives like crypto.
The Real Cost of Amex APR
APR (Annual Percentage Rate) shows the yearly cost of borrowing, including fees and compounding.
If you borrow £1,000 on a card with a 697.1% APR and only make minimum payments, your debt can spiral into many times the original balance within a year.
This makes credit card debt one of the most expensive forms of borrowing.
How That Compares to ISAs
Cash ISA (3%): £10,000 earns just £300 per year.
Stocks & Shares ISA (6%): £10,000 might grow to £10,600 in a year.
These returns are modest — safe, but slow.
Meanwhile, if you’re carrying credit card debt at hundreds of % APR, the cost of borrowing wipes out any small gains you might earn from an ISA.
How Crypto Fits In
Crypto projects like AKAS DAO show a completely different picture:
Flexible staking (0.41% every 12 hours) can add up to ~2100% APY if sustained.
30-day rebase pools (~4% daily) can multiply tokens far faster.
For example, £250 ($300) might buy ~32 tokens today. In 30 days of rebasing, this could grow to more than 100 tokens. That’s far beyond anything an ISA or bank account offers.
The Risk Reality Check
ISAs: Safe, steady, government-backed (for Cash ISAs). Very low return.
Amex APR: Extremely high cost if you borrow. A trap for many who carry balances.
Crypto: Huge growth potential, but risky — token prices can crash, reward rates may not last, and regulation
