We’re so old, we thought “no cap” meant a hat free zone. 🚫🧢 Apparently, it means “for real” or “no lie.” If George Washington were a Gen Alpha, he would have surely hit the cherry tree accusers with that slick line. 🌳
Speaking of caps, we’ve got some news of a different variety. Trump recently announced a 10% cap on credit card interest rates. 🛑 Let’s go over what we know so far.
Here’s Five Fast Facts on the proposed interest rate cap:
- ✂️ Cutting Crew - President Trump recently made an announcement on Truth Social that he wanted to cut credit card interest rates down to 10%. According to the post, the lower rate would stay in place for a year and credit card companies would have to make the changes by January 20th 2026.
- 🗞️ Old News - Trump mentioned this cut in his campaign. Senators also introduced a bill to do the same thing, but for five years instead of one. Although the President said credit card companies would “violate the law” if they didn’t comply, we really don’t have any concrete details yet.
- 🏡 Average Joe - For Americans who carry a credit card balance, today’s average interest rate is 22.30%. That’s a significant jump from where it was a decade ago. Back in 2016, the average was 13.35%.
- 💳 In the Red - Roughly 46% of American households have credit card debt. That 10% cap would really do wonders, even if it’s just for a year. With a lower interest rate, more of your payment would go towards principal and balances could be paid off faster.
- 💵 By the Numbers - Want some math? On a $6,000 balance at 22% APR, you’d need about $561 a month to pay it off in a year. At 10%, that drops to roughly $527 a month, saving you over $400 in interest.
🔥Bottom line: If Trump’s proposed cap goes through, it could help a lot of Americans crawl out of a debt hole. How big of a credit card limit should you have? It all depends on your unique financial situation, but there are a few rules of thumb. Wander over to this article where we give you the scoop.
What’s the highest interest rate you’ve seen on a credit card?
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