Trump Promised to Cap Credit Card Rates at 10%, So What Are Americans Paying Now?

The average interest rate on credit cards has surged to 21.19%, nearly double the 10% limit that former President Donald Trump proposed. This increase raises concerns among American consumers, particularly as the White House has since distanced itself from the initial promise.

Currently, a balance of $6,000 with a monthly payment of $200 at this 21% interest rate results in a staggering $2,621 in interest over time. In contrast, if the interest were capped at 10%, the total interest would amount to just $933. This discrepancy highlights the significant burden that high interest rates place on cardholders.

For individuals struggling with credit card payments, there are options available beyond waiting for legislative changes. Cardholders can reach out to their credit card issuers to inquire about hardship rates, consider 0% balance transfer offers, or seek assistance through nonprofit debt management programs.

In a recent discussion on social media, financial expert Dave Ramsey addressed the issue of credit card debt faced by a caller named Katie, who expressed her inability to manage her payments. Ramsey emphasized the importance of creating a budget to help Katie plan her finances more effectively. However, while budgeting is crucial, it does not tackle the core issue of high interest rates that consume a significant portion of each payment made to credit card companies.

According to data from the Federal Reserve, the average credit card interest rate rose from 20.94% in May to 21.19% in August 2026. This current rate is approaching a record high of 22% set in August 2024. In comparison, the average rate was only 15% in November 2021.

Trump initially proposed a temporary cap of 10% on credit card interest rates, reiterating this idea on January 9, 2026. However, recent reports indicate that the White House has since retreated from this proposal. The Senate has introduced the 10% Credit Card Interest Rate Cap Act, but its status remains in the introductory phase, and the House version has been sent to the Financial Services Committee for review.

Senator Elizabeth Warren has been vocal about the financial strain on borrowers, claiming that consumers are incurring an additional $368 million in interest every single day that the proposed cap is not enacted. This figure reflects her estimation of the financial impact on cardholders. In response, banking institutions argue that implementing such a cap could limit credit access for those who rely on it the most, potentially making it harder for consumers to obtain loans or credit when needed.