What You Should Know About a Proposed Credit Card Interest Rate Cap
Georgia residents, like many others across the country, are struggling with credit card debt. As recent news reports have noted, interest rates have been especially high and inflation has resulted in higher consumer costs. When those two factors are considered together, they often mean that Americans are charging more than they can repay each month while seeing their revolving balances increase due to monthly interest-rate charges. Currently, about 60 percent of credit card users have at least some revolving debt, according to a recent CNBC report. That report also indicates that President Donald Trump has called for a “temporary 10 percent cap on credit card interest rates” for 2026.
Should this change your thinking about how to handle your credit card debt? As the article suggests, there are both positive and negative points that borrowers need to consider if this cap is put in place.
Cap on Credit Card Interest Rates?
The news of a potential cap came through Truth Social earlier this month when Trump posted: “Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%.” Yet as CNBC underscores, Trump has not provided any “details on how his plan would come to fruition or how he planned to make credit card issuers comply.” Accordingly, the 10 percent cap on interest rates might not even come to pass.
Even if it does, it may not apply to existing balances. The debts to which it would apply are not yet clear. As such, you should not count on this. But what if it does come to pass? Should you be thinking about your credit card debt management differently?
Potential Effects of a Temporary Interest Rate Cap
If interest rates are capped and your revolving debt will not continue to balloon the way it has over the last year or two, should you still consider debt settlement? Credit cards will still be making money, and your debt will continue to grow, even if it is at a lower rate. As such, if you can afford to settle your debt, it may certainly be in your interest to do so.
You should also know that the benefits of an interest rate cap may not be quite as appealing as they sound. The CNBC report suggests that credit card companies may attempt to make up the money elsewhere. For example, they may begin charging “swipe fees” that could be charged directly to consumers on new debt. Even if such fees are charged to merchants, merchants could in turn up the costs for using credit cards in order to cover any new fees assessed (thus ultimately charging them to the consumer).
Contact a Lilburn Credit Card Debt Lawyer to Discuss Your Questions and Debt Settlement Eligibility
If you are currently struggling with credit card debt and weighing your options, it is important to discuss your circumstances with a lawyer who can assist you. Even if the credit card interest rate is capped this year, it is important to keep in mind that it may not affect existing credit card balances and payment amounts going forward, and it may nonetheless be in your best interest to settle your debt if you can afford to do so. An experienced Georgia debt settlement attorney at Konn Law Firm LLC can speak with you today about your credit card debt and any other consumer debt that you may want to settle. Contact our firm to find out more about how we assist debtors in the Lilburn area and how we can help with your credit card debt concerns.
Source:
cnbc.com/2026/01/12/trump-credit-card-interest-rate-cap.html
