WASHINGTON, D.C. – The average American owes many thousands of dollars on their credit card balances, and to help these spendaholics out of their crushing debt, President Trump is introducing a one-year, 10% cap on credit card interest rates, effective January 20, 2026.
The White House, under President Trump, recently proposed a one-year, 10% cap on credit card interest rates, effective January 20, 2026, aiming to protect consumers, but without concrete implementation details, it faces industry opposition and questions about feasibility, with supporters pushing for legislation like Senate Bill 381. This initiative revives a past campaign pledge, sparking debate over potential benefits versus reduced credit access, especially for riskier borrowers, according to banking industry sources.
Average credit card rates are currently high (around 21-22%), leading to record consumer debt, according to reports.
The average American credit card debt varies slightly by source but hovers around $6,000 to $7,900 for cardholders with balances, with figures for late 2024/early 2025 showing averages like $6,194 (CNBC), $7,886 (LendingTree), and $6,735 (Experian for all consumers), driven largely by everyday expenses and rising interest rates. Debt levels differ significantly by age, with Gen X and Millennials carrying higher balances, while younger generations (Gen Z) and older groups (Baby Boomers) carry less, though balances are rising for younger groups.
Key details of the proposal:
- A temporary 10% cap on credit card interest rates.
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Proposed to start January 20, 2026, for one year.
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To stop consumers from being “ripped off” by high rates, says Trump.
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Details on implementation are unclear, but it would likely need Congressional action or regulation.
Banking groups argue a cap would cut credit availability and drive consumers to costlier, unregulated options, notes Bank Policy Institute.
Meanwhile, some lawmakers, like Senator Elizabeth Warren, support capping rates but call for actual legislation, not just presidential calls. A bill (S.381) was introduced in the 119th Congress, co-sponsored by figures like Bernie Sanders.
The core issue is balancing consumer protection with credit access, as caps can reduce lending, especially for higher-risk borrowers, say banking experts.
12 thoughts on “President Trump attempts to help bail you out of immense credit card debt burden with rate cap”
It was certainly NOT trumps idea to release the trumpstein files, in fact it was the total opposite. Many of the trump files were sealed by judges due to standard court rules until conveniently after the election…but you already knew that…
I hope the rates come down by 50% – 75%! They are way too high!
This will do nothing to bring rates down. Rather it will make credit card companies cancel credit cards for its riskier customers. Trump is hoping he can blackmail companies into cutting rates because, legally, capping rates is not something a President can do.
Why wouldn’t you be happy with a rate cut
I actually would like this to happen although I try to make sure my balances on my cards are paid off each month. But, it takes congress to make this happen and as we all know, Congress acts in the best interests of themselves and accepts money from credit card companies to stop laws like this from being passed. Trump knows that and if it doesn’t pass, he will pass the blame to Congress despite the fact he could pressure his Congress people and the card companies to agree to lower the rates. He also wants to lessen the odds that the Repubs will lose the midterms. And he wants the public to forget about the Epstein files.
I think both parties want everyone to forget about the EF’s. Weird that this has been an issue for many years now and it is still going. Why didn’t they get released under Biden… or even get much publicity? He had the entire Congress and Justice Department under his command…
You know the answer to that question.
tell us
They would be if Ilhan Oman suggested it. But since it is Trump’s idea, they will cut off their arm to spite their shoulder.
What?
What ain’t no country I ever heard of. They speak English in What?
It had a question mark after it, so it was a question. If trump suggested that good Americans should shoot liberals, you would probably be ok with that.