For millions of Americans drowning in high-interest credit card debt, this could be the most hopeful financial news in years. A new proposal is fueling nationwide buzz by suggesting a dramatic cut in credit card interest rates—from today’s punishing levels near 28% down to just 10%. If it becomes reality, it could ease pressure on household budgets almost immediately.
Why This Matters Right Now
Credit card interest rates are crushing consumers at a moment when money already feels tight. With inflation, rent, groceries, and insurance costs still elevated, many families are relying on credit just to get by. Total U.S. credit card debt has crossed the trillion-dollar mark—and a drop this steep in interest rates could change how Americans borrow, repay, and breathe financially.
What’s Being Proposed
Former President Donald Trump has publicly called for credit card interest rates to be capped at 10%, far below the rates most consumers currently pay. Average credit card APRs today typically range between 20% and 28%, depending on credit score and card type.
The proposal is framed as temporary relief—designed to give consumers breathing room as they recover from years of higher borrowing costs.
How Credit Card Rates Got So High
Unlike mortgages or student loans, credit card interest rates are usually variable, meaning they rise when the Federal Reserve raises benchmark rates. Since 2022, the Fed’s aggressive rate hikes to fight inflation have pushed card APRs to historic highs.
There is currently no federal cap on credit card interest rates. While consumer protection laws require transparency, they do not limit how high rates can go.
What This Could Mean for Everyday Americans
If interest rates were capped at 10%, the impact would be immediate for many households:
- Lower monthly payments: Less of each payment would go toward interest
- Faster debt payoff: Balances would shrink more quickly
- More room in family budgets: Extra cash could go toward groceries, rent, or savings
For someone carrying a $5,000 balance, the difference between a 28% rate and a 10% rate could mean hundreds of dollars saved each year.
Why Banks and Credit Card Companies Are Pushing Back
Financial institutions warn that a hard cap could have unintended consequences. Banks argue that credit card rates reflect risk and operating costs. If rates are limited:
- Credit approvals could become stricter
- Rewards programs may be reduced
- Annual fees or other charges could increase
Some executives have gone further, warning that a cap could limit access to credit for consumers with lower credit scores.
Is This Likely to Become Law?
At the moment, the proposal is not law. Any nationwide interest-rate cap would require action from Congress or federal regulators. While similar ideas have been introduced in the past, none have yet passed into law.
That said, the conversation itself is significant. Growing public pressure around high credit card rates could push lawmakers and financial institutions toward compromise solutions—such as targeted caps, temporary relief programs, or expanded low-interest card options.
What Credit Card Users Should Do Now
Until any changes are official, consumers can still take steps to reduce interest costs:
- Compare cards and look for lower-APR offers
- Consider balance transfer cards with promotional 0% rates
- Pay more than the minimum whenever possible
- Avoid adding new high-interest debt
Consumers may also want to compare their current cards with the best cashback credit cards in the USA that offer lower APRs or better value for everyday spending.
Even small actions can significantly reduce how much interest you pay over time.
The Bottom Line
The idea of cutting credit card interest rates from 28% to 10% has struck a chord with millions of Americans feeling overwhelmed by debt. While the proposal faces legal and political hurdles, it highlights a growing demand for relief from high borrowing costs.
For now, it’s not guaranteed—but for credit card users across the U.S., it’s the clearest sign yet that change may be coming.
