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.
Might be easier to limit what the IRS charges you. Comparable to credit card rates.
It’s a limit on usury.
Arkansas used to cap the rate a credit card could charge. Don’t know about today.
It will make credit expansion to the credit unworthy less available, but the great secret is that a huge number never pay their debt back.
Agreed - totally unprincipled pandering. Who is advising him on this?
Yea-lets not forget that the credit card companies do assume the risks and losses due to fraud and non payment. So 10% is not going to cover their losses. On the other hand the credit card companies choose to operate in a high risk fraud environment. In the old days they actually required signatures and sometimes ID. And they actually checked the signatures. Now even if they ask you to sign(Which is not often) then with those digital pads they don’t even get anything that resembles a real signature. Just a bunch of scribble because they are so impossible to sign accurately. Nothing like pen and paper. But in actuality the credit card companies are their own worst enemy when it comes to fraud.
No. Just. No. Price caps never work. The people who need credit but have bad credit will never get it because the banks can’t justify it and those who have good credit will suffer because they’ll have their rates upped to cover the deadbeats.
Capping interest rates doesnt solve the problem of people spending money they dont have. If you cant pay cash, dont buy it.
10% limit will dry up the credit card market. Only the super qualified will be approved.
not that I see anything wrong with that.
Just forgive it, it’s only trillions.
above 10% is just flat-out robbery anyway, I support this
Which Democrat proposed this?
Unfortunately our entire economy depends on stupid people maxxing out their credit cards.
So when will they put a cap on the government’s credit card?
what a moronic idea. Why doesn't he stick to repeating a few substantive policy issues instead of flipping off meaningless sound bites good for maybe one news day.
We have a high interest rate on our card, but we pay the balance before interest can be charged.
You’re absolutely right. I just have to hope it can’t get through congress
Banking is centered in NYC and California.
What could be bad about inflicting harm on those states?
12% annual versus 10% monthly
there’s a HUGE difference
True. If Harris had suggested this, Freepers would be livid about “socialism.”
In general I don’t agree with this, at least not on a permanent basis. As far as a temporary measure, I’d have to learn more. But I don’t agree that it would be inflationary. On the contrary, I think it would force credit card companies to be less risky with their lending.
“A permanent cap would be better. 10% sounds like a reasonable limit.”
...letting people take responsibility for their own actions is best
Well it actually would solve THAT problem since they wouldn’t get credit if they can only charge 10%. Companies would just not give out the credit.
I’ve never heard of a credit card company losing money. Have you?
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