Posted on 09/19/2024 11:17:26 AM PDT by mooncoin
During his Wednesday Uniondale rally, President Donald Trump announced credit debt relief for millions of Americans by planning a temporary 10 percent cap on credit card interest rates.
“And while working Americans catch up, we’re going to put a temporary cap on credit card interest rates. We’re going to cap it at around 10 percent. We can’t let them make 25 and 30 percent,” Trump said.
According to Lending Tree, credit card interest rates for new credit offers is at an average of 24.92%. High credit card interests are currently hurting everyday hard-working Americans with multiple credit cards.
Forbes reported that credit card debt in 2024 continues to skyrocket at an alarming rate. The average American’s credit card debt rose “from $5,947 in the second quarter of 2023 to $6,329 in the second quarter of 2024.”
Under the Biden-Harris administration, the purchasing power of Americans continues to dwindle due to high inflation rates, while the American dream is now in decline and out of reach for homeownership and extra funds for discretionary spending. The ripple effects in the last three and a half years resulted in many Americans falling behind with high monthly credit card payments.
The lives of Americans nationwide have become increasingly difficult with high unemployment rates, high childcare costs and the lack of high-paying job opportunities. Trump’s newly proposed economic policy to cap credit card interest rates at 10 percent will be one of the many paths to help lead Americans to improved financial futures.
Don’t mess with the usury it’s bad for your health.
Inflation losses on the dollar are 12%.
Who would pay someone to take a loan?
All interest right now begins at 12% YoY because the actual amounts are pretty invalid below that.
A permanent cap would be better. 10% sounds like a reasonable limit.
Its price-fixing, pure and simple. It won’t have a good end. No different from price-controls on grocery items.
Coming soon...No credit for most people.
He really is getting crazy with this pandering. The reason credit cards have such high rates is that they are unsecured loans, with a fairly high rate of default. Would also be inflationary in the short term.
People would be better off if the government quit charging oil refineries carbon taxes that are passed onto consumers. Most people don't know about the RIN's: Registered Identification Numbers that are really carbon taxes with a generic name.
I don’t like this. What business is it of the government what a private business charges a private customer for a loan? I want less government, not more. Let the market set the interest rate and let customers shop around just like we do now.
Never go Full Nixon!
That was my first thought. I don’t know a lot about finance and economics, but I don’t see how we can complain about price controls on groceries, and then accept this.
That’s fine you just won’t have credit cards. Or you’ll have nothing but prepaid credit cards.
At 10% they just won’t bother offering cards any more. Then government will have to step in and force them to do so, because it’s “racist” not to.
This doesn’t seem to e a legitimate function of government. Is it even constitutional?
I have mixed feelings on this. I do think that the credit card companies are kind of like loan sharks at times. But giving the government to much power to regulate private business can lead to bad places. Lets not forget that Trump was the author of the eviction moratoriums that destroyed many small landlords so unjustly. Trump started that at the federal level before the states decided to do it as well. And the IRS now has there hands in the pockets of landlords who lost money due to eviction moratoriums. Calling it a taxable capital loss in certain circumstances. No Joke.
Don’t necessarily disagree but there should be some sort of cap on credit card interest rates....maybe 5% to 6% over prime?
People are stupid and credit card companies are smart bordering on corrupt. I had a younger client, bright lady who wasn’t to smart with finances, ready to take a huge cash advance on her credit card to buy a condo at 19% interest. I told her borrow the money out of her 401K, pay about 80% less interest and pay yourself back rather than the credit card company.
She did it and was ecstatic.
This one doesn’t make sense. Trump might want to bring the rate down using sound financial plans but to just ‘lower the rate’ - no chance. It would be as stupid as price controls on food.
Oh good….lets all jump on the price control wagon.
This is a stupid idea that will result in trillion in credit evaporating overnight.
Bad idea, don’t like this one. I also think it’s a bad campaign move. Step back
Worth noting that
1) all these banks allow transfers INTEREST FREE for 1 year from another card
2) No bank is going to be hurt by this, because any risk to them systemically will be Fed bailed out, and the Fed creates money from nothing so they have infinite supply
3) It will win votes
she’ll beat it at 8%
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