Former President Donald Trump has proposed a temporary 10% cap on credit card interest rates if re-elected. Speaking at a rally in Long Island, New York, Trump introduced this plan to provide relief for Americans struggling with debt but did not offer specifics on eligibility or duration. His campaign declined to comment further.
Although a U.S. president cannot directly impose such caps, similar legislative efforts have been made. Last year, Senator Josh Hawley (R-MO) proposed a bill to cap credit card interest rates, criticizing government bailouts for banks while Americans faced record credit card debt.
Opponents argue that such a cap would favor prime borrowers and create shortages, potentially hurting lower-income individuals. Similar attempts by the Biden administration to lower late fees were blocked by a federal judge.
Trump’s pitch aligns with his broader economic agenda, which includes restoring state and local tax deductions, eliminating income taxes on overtime pay, and ending taxes on Social Security benefits.
Nationwide, credit card interest rates hit 30.45% this year, up from 24.35% in 2021, with total U.S. credit card debt now at $1.14 trillion.
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