It was a ridiculous demand and dead on arrival.
President Donald Trump called for a one-year cap of 10 percent on credit card interest rates, effective Jan. 20.
“Please be informed that we will no longer let the American public be ‘ripped off’ by credit card companies that are charging interest rates of 20 to 30%, and even more,” he wrote in a Truth Social post last week.
And as if all caps is legally binding legislation, he punctuated the post with “AFFORDABILITY!”
This social media edict, made under the guise of aiding debt-laden consumers, is not going to happen.
The pushback from lenders was swift. The American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum, and Independent Community Bankers of America issued a joint statementasserting that “a 10 percent interest rate cap would reduce credit availability and be devastating for millions of American families and small businesses.”
It would also only drive consumers toward less-regulated, more costly alternatives, the bankers warned. Think payday lenders or auto title loans.
Trump doesn’t have the authority to unilaterally order lenders to adhere to a rate cap. That requires an act of Congress, where there’s steep opposition to the idea.
If the administration were truly interested in affordability, it would have strengthened the Consumer Financial Protection Bureau rather than kneecapping it. This once-fierce watchdog, which was created to help consumers avoid predatory lending practices, has lost much of its workforce since Trump took office.
The CFPB pursued companies and industries that engaged in deceptive marketing and billing practices. Under Trump’s leadership, the agency has dropped several lawsuits against financial companies.
If Trump really wants to take on consumer credit card debt, which pushed above $1 trillion for the first time in 2023, he would tap the CFPB’s existing power to sue predatory lenders, rather than making dubious social media pledges.
So, no. I don’t believe for a second that Trump is going to get lenders to capitulate to dropping credit card interest rates. Anyone who calls affordability “a fake word” is not to be taken seriously.
A Washington Post poll asked 1,031 people in the first week of 2026 about their New Year’s resolutions. Improving finances tied exercise as the top resolution, at 18 percent.
Promising themselves to aggressively pay down debt is an annual rite for millions of Americans. In the poll, people were asked to describe their goals for this year in their own words. In English and Spanish, there was a recurring desire: To be debt-free.
“Not to use the CITI card until it is paid off,” one person wrote. Another resolved to “Pay off credit card debt somehow.” The “somehow” felt disheartening, echoing the same desperation found in this comment: “Get another job so I can pay down my credit card debt.”
The average credit card interest rate is hovering just shy of 20 percent, according to Bankrate.
That rate matters if you carry a balance from month to month, and 47 percent of cardholders do, according to a survey by Bankrate released this week. A majority of Americans with credit card debt have had it for at least a year.
Credit card balances surged to more than $1.2 trillion in the third quarter of 2025, according to data from the Federal Reserve Bank of New York’s Center for Microeconomic Data.
Many of these consumers turn to high-interest credit as a lifeline to cover medical emergencies, car repairs and even essentials like groceries and child care.
There are several ways to tackle credit card debt. You can try various payoff methods to systematically pay down the debt. I prefer a method I call the debt dash, which involves organizing your cards from lowest to highest balance. Then, working your way through the pile, from the lowest balance to the highest.
Here’s another strategy. Call your lender and ask to have your interest rate reduced.
It helps to have a script that’s tailored to your situation. Here are some ideas:
The loyalty leverage
Lenders spend a lot of money to acquire customers, and they would often rather lower your rate than lose your business.
Before you make the call, find out your latest credit score. This could help show you’re good at handling your debts if your score has been rising.
If you’ve been getting credit offers, you might start by noting how long you’ve had the card. Then say, “I’d prefer to keep my business with you. Can you match or beat the rate by [name of the lender]?”
Follow with: “I’d like to see what you can do to lower my rate.”
High balances
Lenders love to poach folks with thousands of dollars in debt. It’s good for their bottom line.
If your credit history is excellent, you might be able to transfer your balancesto a card with a zero percent interest rate promotion. I’m not a fan of using debt to pay debt, but for some, this can speed up the paydown.
If you’re happy with your current lender, pitch this: “I’m looking at moving my current balance to another company offering a zero percent rate. Before I do that, I wanted to check if there are any promotional rates available on this account that would make it worth staying.”
Financial hardship
Lenders also can help you if you’re struggling, especially if you’ve consistently paid your card bill on time.
Here’s what you might say: “I am currently facing some financial challenges [share why, such as a job loss or medical bills]. I want to continue making my payments on time, but the current interest rate is making that difficult. Do you have a ‘hardship program,’ or can you offer me a temporary interest rate reduction until my finances improve?”
When using this negotiation playbook, be prepared for a frontline customer representative to say “no” to your request. They may not have the authority to help, and if so, ask to speak to someone higher up or a retention specialist. Always be polite and persistent.
With the right script, you could land yourself a better deal.
The post No 10% credit card interest cap is coming. Use this script instead. appeared first on Washington Post.
