Trump's proposed credit card cap spotlights Americans' debt. Would it help?

BBC News - WorldEN 5 min read 100% complete January 17, 2026 at 01:39 AM

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long article 5 min

Millions of Americans face increasing credit card debt, with interest rates averaging around 22% as of November. President Trump recently proposed capping credit card interest rates at 10% for one year, starting January 20th, to alleviate this burden. The proposal comes amid rising credit card debt, now exceeding $1 trillion, and increasing interest rates. However, bank executives have criticized the plan, arguing it would reduce access to credit for consumers by potentially leading to credit limit cuts or account closures. Banks, which earned $160 billion in interest charges in 2024, are pushing back against the cap, with some hinting at possible legal action.

Key Entities & Roles

Key Player Opposition Context

BBC 30% Columbia, South Carolina 40% Exchange Capital Resources 40% Susan Schmidt 50% JP Morgan 50% Consumer Financial Protection Bureau 60% Federal Reserve 60% United States ×270% Capital One ×270% American Express 70% Selena Cooper ×480% Donald Trump ×390%

Keywords

credit card debt 100% interest rates 90% credit card cap 80% trump proposal 70% consumer debt 70% financial burden 60% access to credit 50% bank executives 50% late payments 40%

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Negative

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BBC News - World

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90%

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