Summary
President Donald Trump has proposed a temporary cap on credit card interest rates at 10% to help Americans managing credit card debt. The proposal has faced opposition from banks, which argue that it could reduce access to credit and negatively affect consumers. The U.S. credit card debt has been rising, with interest rates averaging around 22% as of November.
Key Facts
- President Trump proposed a one-year cap on credit card interest rates at 10% starting January 20.
- Credit card debt in the U.S. has surpassed $1 trillion, with interest rates averaging 22% as of November.
- 37% of U.S. adults carry a balance on their credit cards.
- Banks argue that the cap could reduce consumers' access to credit and might lead to higher fees elsewhere.
- The proposal has faced pushback from bank executives, who say it could lead to legal challenges.
- Interest charges are a major revenue source for banks, totaling $160 billion in 2024 per the Consumer Financial Protection Bureau.
- Critics say the cap may not significantly help consumers already struggling with debt.
- Some suggest banks might cut costs internally to offset potential revenue losses.
