Details are scant, and I’m not exactly sure how this would work, but President Trump has proposed a one-year freeze on credit card rates at 10%.
[SOURCE]
As noted by Politico, previous “legislation sponsored by Sen. Bernie Sanders (I-Vt.) and cosponsored by Sen. Josh Hawley (R-Mo.) would impose a 10 percent cap on credit card rates for five years. Similar legislation has been introduced in the House.” Yet, unilateral authority by a President does not seem evident.
If anyone has any information on how this could be accomplished, feel free to share. I’m not sure how this can be done.
It can’t but in negotiations you lead with something that is impossible. What comes next is likely heavy concessions from big banks to avoid anything nearing this.
Agree – the alternative is “when legislation comes to my desk limiting you to 5% permanently, I’ll sign it in a heartbeat.
We the taxpayers will pay in increased taxes to pay for remaining interest on everyone else’s credit card.
The banks get payed no matter what. The banks ALWAYS get paid through higher taxes the we have to pay.
When Americans pay their credit card bills on time before interest accrues then they get screwed.
This is just like the college scam. We the American taxpayers had to pay off other people’s college bills under Biden.
NOTHING IS FREE.
We have to pay higher taxes.
President Trump get our money back from all the fraudsters stealing BILLIONS in Minnesota and all of the states and start putting people in handcuffs but I’m not holding my breath because Pam Bondi Kash Patel, Dan Bongino are corrupt. ALL OF THE DOJ/FIBS are corrupt.
The college scam should have been billed to the colleges and the lenders who refused accountability on how they were accruing interest. Would be great to see that last truth come out.
Nice name!😏
The banking cartels narrative:
The American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum and Independent Community Bankers of America issued a joint statement:
“At the same time, evidence shows that a 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on and value their credit cards, the very consumers this proposal intends to help,” they said. “If enacted, this cap would only drive consumers toward less regulated, more costly alternatives.”
https://bankingjournal.aba.com/2026/01/aba-associations-respond-to-trumps-call-for-credit-card-rate-cap/
Aren’t the “ less regulated, more costly alternatives” also owned and operated by the big banks? They started with putting a lien on your house and last I looked on your vehicle since most houses are owned by banks now. Who do they think they are fooling?
It’s a strong suggestion by the President, not an Executive Order.
It’s consistent with PDJT’s negotiating style. He suggests a publicly desirable action by whoever is targeted in the suggestion – in this case, the banks behind all credit cards. This whets the publics appetite to see that action made real, thus public pressure is generated.
The banks will of course threaten punitive results if that action is forced upon them. Maybe a compromise is then offered, and so the serious negotiations begin.
I’m not sure either, but I think it is considered “jaw boning,” or shaming them into it.
The banks, since the European banks (particularly the English ones) in the 19th century, have enjoyed picking the pockets of the lower and middle classes and thereby attaining unbelievable amounts of wealth and influence.
Like lotteries and gambling, credit card interest rates are a stupidly tax.
People buy into it though. My mom didn’t pay off her mortgage on the idea that she would lose her tax deduction. I’m like “So, you’d rather pay the bank extra money to save some money on your taxes? Why not pay off the note and invest the cash instead?”
It’s like giving money to one thief to avoid having it stolen by a different thief, instead of just putting it somewhere difficult for both to steal.
Nobody is forcing people to use CCs. We always pay for things with cash in our home. Including our cars.
When your condo gets an assessment of $3,000 and you have 2 weeks notice to pay half of it! and you’re getting by on social security check to check. Options are limited.
Yikes. Your condo needs a more responsible board of directors. Sounds like there are no reserves, or it’s not adequately funded.
The elevator broke. It was a $150,000. Repair
All elderly people of only 45 units in our 30 yr old building. We have great management.
Stuff happens.
They want to own that condo. They know what they’re doing.
Not all families can do this. Many low middle class families are forced to use them in emergency! Car repairs for $2500, don’t fall out of the sky! Living week to week, there are no savings of note. Unpaid illness, emergencies arise out of nowhere! Depending on where you live, it is impossible to get ahead with surging electricity, skyrocketing insurance rates, tax increases and health insurance premiums never match a raise after the Federal State and local taxes suck you dry!
I buy EVERY thing on a credit card. Pay it in full EVERY month and get back hundreds in bonus points to spend like cash on anything I want. Haven’t paid interest in 55+ years. I’m not rich, just middle class who learned as a youth listening to my elders who were depression survivors…
This is only possible because you are living beneath your menas.
“Calling for”
Ok congress, let’s get something done.
Speaking of “calling for”
I’d like to call for all treepers who can do so, to send some funds to TCTH. Its tax time and post holidays but let’s shake the sugar tree for a few dollars peeps.
Biden admin weaponized the regulators. I don’t think that Trump admin would use that tactic, but its an option to apply pressure.
This predates Biden by many, many years.
I am not a finance type of person…just watching closely, the ‘income’ and ‘outgo’…as most Forgotten American Men and Women do….
From my kitchen table spread sheet…A year is not long enough for the average citizen when one looks at how long it takes to pay off a balance if only making minimum payments.
IMHO, the banks used horrible economies, to their advantage, as more and more people relied on their plastic cards, to make ends meet…from recent inflation and energy costs along with higher taxes and housing costs…complicated by stagnant job growth and wages.
Then the subsequent impact on one’s ‘credit score’ if you miss a payment or are late. You then are awarded a higher interest rate for car loans, mortgages, and of course, your credit cards depending who one does business with.
These high rates have been with us for about 30+ years. It’s time they felt our pain.
If from day one, it cuts the interest charged on current balances, that would be a start, but more sacrifice needs to be made by the “Banking Industrial Complex”.
As one who shares some guilt in terms of motivating credit card use, I can say it wasn’t necessarily people “relying on credit cards” that brought us to this point. By marketing the convenience and “perceived” safety of using cards instead of cash the banking industry slowly and very convincingly urged both merchants and cardholders to “charge it.” Keep in mind banks wet their beaks on both sides of the transaction. Now there are many establishments that will not accept cash at all and that policy is expanding. Obama made possible the usury now in effect in his first term, so it isn’t necessarily Sleepy Joe’s doing. President Regan also contributed to the high ceiling now imposed on cardholders. Similar to the nature of a representative republic, capitalism only works when those at the top hold Christian values.
Well said!
I look at this way…the bank’s job is to separate us from our hard earned money, any way they can.
Our mission, should you choose it, is to hold onto as much hard earned money as possible.
Good morning Aggiegirl
Good morning, Monti, I try to hold onto it…as I stare down retirement!
There used to be a Visa or MC commercial showing people in an orderly society swiping their cards and keeping the cash register lines moving. It was like a clockwork machine.
Then one of the bad people would try to pay with cash. A scratching record sound would play, and the whole system got bogged down. Everyone would glare at the cash payer. I forget if he actually ended up using a card. As soon as the bad person cleared the queue, everyone was relieved.
But the message from Visa was clear: if you don’t use a cc, you’re a bad person.
That commercial was not that long ago….there was another, a middle class type dad on a lawnmower smiling like a fool while saying “I am up to my eyeballs in debt”…
TOO LATE to ‘grow a brain’ in that guy. Just sayin … /humor
In the late ‘80’s or ‘90’s (?) some wordsmith made up a way to liberate senior cash with a bumper sticker stating “I’m spending my children’s inheritance!” Made me so MAD! Made it OK for an entire nation to not know the predation being visited on their children.
What about the check writers who waited until they got their receipt from the cashier and only then did they bring their ancient arm up to snap open their purse to retrieve their checkbook.
Glad I missed that! No TV😁
I used to teach this at the school I worked at. You cannot pay off a cc by paying the minimum balance because people use their credit cards as rolling spending accounts.
It’s like poking a tiny hole in a bucket to drain it while having a hose filling the bucket.
I would make the kids set up budgets and excel spreadsheets using published APRs from the banks. They were always shocked when I made them drag the formula down 48 months to see that their “minimum payments” resulted in them being $20K-$30K in debt.
Nothing serious will be done about this because the ENTIRE PLANET depends on American consumers to spend, spend, spend.
The Madison Avenue Marketers…have managed a subtle campaign about we the people and keeping up with the Jonses.
I’d say it’s time they felt our anger and hate. Honestly IDK how people can stand to work in those jobs. Hollow men and women indeed!
Don’t like government getting involved in these matters but it could help people who are consumed by debt and don’t know ho to manage it or shop for rates.
This is kind of like OSHA…if big business did not cut corners so outrageously, OSHA would not be needed, or that consumer protection organization.
A problem created and “Hi, I am from the government and am here to help”./s
My dad was the manager of a glass company (installation) when the OSHA laws came into effect. Before, him and the union stewards would hash out safety on the job measures, and that worked well. After OSHA, their safety numbers went down and lost time for injuries went up, mainly because the rules that OSHA came up with were stupid (his words).
While I was thinking of say, Boeing and their issues with quality assurance in their products…I can also see what you describe.
Do you remember when everyone was forced to buy LED bulbs? The idea was to save electricity.
Did people put up the same number of Christmas lights the next year? Nope! Since the LEDs run 10x cheaper they’d put up 10x more lights.
If you cap the rate, it’ll just encourage people to put more on the card.
Then they should just raise interest rates to 75% so that no one uses the cards ever.
That will help things out.////
re: “Do you remember when everyone was forced to buy LED bulbs?”
Nope.
Those first energy efficient lamps were CFLs – Compact Fluorescent Lamps, not LEDs – Light Emitting Diodes. We have the LEDs in abundance NOW ….
As part of implementing a central bank digital currency
Also referred to as a Fed coin. We can’t pay down the debt. Thank you Con gress. Some think credit cards will go away all together. Just cash & Fed coin. We know a financially engineered reset is coming. A sovereign fund makes the most sense. If anyone can do it; it’s our President!
The Art of the Deal…I can only imagine the horse trading going on with Congress right now. Bernie Sanders and Josh Hawley? Trump just gave their legislation legs, but what is the quid pro quo?
Might apply to any “new” offer solicitation.
Any CC company/bank new credit applications/offers to switch to their company/bank cannot exceed 10%
Opened an offer yesterday, no interest for 6 months then 28.75%.
Always fun to read on way to shredder.
The more credit applications you ask for the worse your credit score is.
Coffee and Covid wrote on this just this (Saturday) morning. There are matching bills in both the House and Senate holding on committee.
The predicate is the reawakening of usury law and practice. A very informative article, well worth the read.
Somewhere back in a dusty corner of my mind, there’s a vague memory that Delaware was the first, or one of the first, to relax usury laws which is why many credit card companies located there.
My recollection is it was Jimmah Carter that eliminated all State usury laws. Don’t remember whether it was by signing legislation he encouraged/supported or by executive order.
Living on credit for every day expenses is a recipe for disaster. Pay it off monthly and avoid carrying a balance.
Great concept, I personally subscribe to.
Not everyone can do it though, emergencies arise, many during disasters have that as their only means to rebuild. Then there are the medical situations a whole other issue.
It has been 20 years since I carried a balance. I love using their money for free for 30 days
Mine runs even longer depending on time of purchase, usually line most buys up at beginning of billing period, payment not due for just under 60 days. Get the points for grins.
It’s called being a “floater.” The cc companies hate it.
I’ve done it for almost 40 years. It works.
Didn’t like it when it was originally proposed, hate it even more now.
1. I don’t like how this administration is continuously telling companies how to run their business.
2. If this does go through – which I am pretty sure it won’t – I pray that if people jump into the CC game, they use their CC sparingly, only for emergencies. This has potential to wreck millions of lives when this cap is lifted. And you know who they will be pointing their finger at.
As corrupt as the financial institutions are especially when a credit card company gets not only massive interest rates they s
Also get a cut of every purchase people make.
The property tax system has joined with the real estate market when Assessing “Fair Market” values on properties and when your assessment tripled in one year along with your property taxes I think that deserves more attention then credit cards.
Stay out of the worst taxing county in Fla Nassau
We own a home on Amelia Island FL..we pay 7000$ on a house worth 600000+..it’s modest with a pool, less than a mile from the beach..we do not homestead..we also own a home near Pittsburgh PA ..We pay 7200$ a year in local, county and school taxes. It’s assessed at 170000$..
The only thing that has changed on this property since the purchase is cleaning up 30yrs of landscape neglect (10 months and still at it) trees and shrubs and chain link fence grown into trees plus the investment company (massive realty company) removed and tore down the garage which should lower the assessed value.
This reads more like a 2026 midterms political maneuver instead of policy. The banks will find other ways to get their money. It’s the action-reaction dynamic. After the midterms, we go back to 30+%. Not sure how this does anything good for our economy. People need stability not gimmicks.
Big picture, this is a huge issue because the American people have an unsustainable level of personal debt (just like our government). We reward people with poor spending discipline and we punish savers with basically zero-level interest rates on savings. Our entire financial system is a full blown scam.
Let’s take it a step further here….in investments, the Dividend Kings and Dividend Aristocrats pay peanuts for dividends, if one looks at the price per share of any stock.
The interest charged on cards is way, way out of whack. Not that long ago an interest rate of 15% was considered outrageous. How have they been allowed to raise rates so much? Who gives them the ok to do it?
I’ve been wondering when and if the govt. would go after this complete steal by the banks and credit card companies. Maybe make the banks give interest rates on savings account that match what they charge for credit uses. Bet they’d change their tactics if they were forced to pay out this much interest to customers to use their money.
Interesting idea.
I haven’t earned anything in bank interest for decades.
And I keep forgetting to look into why that is…
It is a War Time measure.
Blue States and sniveling so called ‘red staters’ have declared war on the United States of America.
I think you will find that PDJT can take all their money in American bank accounts as well.
hullo hyatt
The banks will simply issue more credit, making up the 10% hit on volume. Demand for credit will spike as many people are over extended. The central banks will now be priming the consumption engine which will lead to inflation returning big time. I’m sure the Trump team is aware of any fallout, but I can’t see a bright side to this move.
A person does not need to borrow more? Use the interest savings to pay down debt. Make a budget and stick to it.
They will claim they will reduce credit but we will see.
Back in the day…. I worked for Chase Manhattan Bank @ 1 CM Plaza. This was late 1950s. I believe they were the first (?) to issue credit cards, called CMCP (chase manhattan charge plan). They issued employees these cards (I was 17ish) and it was *great* LOL.
Have used many different ones over the years. Now, I use it for convenience but pay in full each month.
My mom was a bookkeeper, also in the 50’s, for Teacher’s Insurance (TIAA-CREF), she had the University of Michigan as one of her accounts….she used to talk about health care being socialized, based on what she knew then, we came close with the ACA.
IMO he’s giving them 12 months to self-regulate a max 10% interest rate. If they don’t get on board and do it voluntarily. Then the hammer could come down on them via some legislation.
I look st this as a reprieve.
I’d bet the average consumer debt a year from now would be higher. “Look honey – we can put that new 80 inch flat screen on visa! Yeah!”
So if Congress can pass a Money Control Act it seems like there is a foothold here to fix it as per President Trump said. 🙂
The bullypulpit.
I’d bet it happens, with or without legislation.
You don’t want that guy making a public example of you.
I think it’s just a trial balloon to see what kind of reaction he gets from Congress. Trump’s stated policies are intended for the ‘everyman’ consumption and he’s becoming much more vocal about it. This, plus the no tax on tips, bringing down mortgage interest rates, etc… I could go on and on. The Democrats, by their own (out and out lie) definition of “party of the average American” should jump at the chance to support this policy. They won’t – and it allows the President to continue to expose them (and the RINO’s too)
In which state are the credit card companies located ?
In which state are millions of businesses domiciled ?
If you start digging into this some things become clearer
Maryland?
Most CC companies located just over the Maryland state line in Delaware.
Who was the US senator for years and lead democrat on the Banking and Finance committee?
mmm-Biden? Coincidence??
Gosh- Hunter had a job at one of those banks.
re: interest rate, credit cards
As posted at various times,
there are people in the bran done high inflation years tried to pretend that it was not a problem and tried ti show that they could ‘keep up with the jones’
by swiping their credit card
and
not fully paying off their monthly balance.
Just paid the
minimum.
Until their credit card maxed out.
Then they would get another credit card…and do the same thing.
They ‘ looked’ like they were keeping up with the Jones’,
buy they were getting buried in growing credit card debt(s).
And when the interest rates on credit were above 15%, sometimes over 20% then it was a challenge to keep up with payments on the growth of the interest.
The same problem occurs with the u.s. $ 38 trillion debt.
( caused by a combination of spending beyond one’s means, fraud spending, paying for illegal immigrants / ngo’s, foreign miss spending, and interest rates ).
There is a lot of debt to get cleared up. It does need to get paid.
Lowering the interest rate on personal credit card debts
and
the national debt,
can help to chart a path forward towards financial independence.
And financial independence adds to peace.
How to knock credit card interest rates down to 10% ?
The credit card companies have a real cost of doing business.
Mr Bessent may have
an idea…
( maybe tariff money carrot helps ? )
I do not know…
Stay tuned…
Imho
Tell the credit card company the oligopoly is about to end if they don’t keep rates at 10%.
Else, split the big 3-4 into 10-12 credit card companies, or allow each bank (once they meet a certain threshold) to be able to release their own cards.
Frankly, I’d go with allowing any bank you have an account with release their own credit cards anyways.
Retired Magistrate here: I am not sure how President Trump’s 10% cap on credit card interest rates could be accomplished. However, since this is our country’s 250th birthday year, I think that President Trump will throw everything at the wall he can to see what sticks to help citizens have a better life.
Many citizens are struggling to make ends meet while illegals get free food, healthcare, housing and other benefits. Its time to take that money and make it available to the citizens who have worked hard all their lives and find themselves in difficult circumstances.
Yes, we have credit cards but we pay them off every month. We bargain grocery shop, fix our older appliances, buy used clothes, have our old cars repaired and try to live frugally.
I look at the big picture. President Trump has accomplished so much since he has been in office. He is the best President in my 78 years.
Living within your means, a concept considered charmingly odd and quaint these days. Too bad this important life lesson seems to be rejected by many today.
Maybe he is declaring the 250th to be a Jubilee Year which will include some forgiveness of debts.
Not long ago, for a few of us, there were usury laws that limited the interest banks could charge. It was also unethical for lawyers to advertise beyond simple listings.
And Pig Pharma did not advertise either.
To make this work the President should propose a 99% interest rates on all credit cards. That way a TDS deranged judge somewhere would certainly issue a ruling mandating all credit card rates be a maximum of 1%.
Congratulations,
Due to the current one year 10 percent credit card rate limit, we are proud to announce that your credit card limit has been increased from $12,000 to $36,000.
Sincerely,
Your credit card company 😉
Similar to the Federal Open Market Committee actions, President Trump could make a decision through an Executive Order that credit card companies would be restricted to charging up to a 10% fee to use their cards. The EO would expire in a year. In addition to this action, he would require that there would be a purchasing limit on all cards, e.g. $247.00 per month. The card would lock when that limit was reached.
This is not a very good idea imo. It would promote more CC debt. Spenders gonna spend and if their rate drops then, from a cash flow perspective, they would just lever up to whatever their payment was pre rate drop.
Didn’t Nixon implement price controls?
Yeas and they failed miserably.
I would rather see lower mortgage rates 🤣
We could have both.
I just found out PA controls the price of milk..it’s $2.00 more per gallon than FL..
How about people using credit cards also being encouraged (and educated) to live within their means and understand the concepts of budgeting as well as prioritization.
A large majority of those with credit card debt sure don’t seem mind piling on debt for their; phones, designer cloths, leased high end cars, other modern conveniences and other fun stuff.
I understand there are exceptions … folks with no other choice but the exceptions are just that … a small group of EXCEPTIONS whom deserve consideration.
Banks have been ripping us off for AGES….
The only reason I have a credit card is for when I need a rental car…
They won’t let you rent with a Debit card….
I told the banks to stick it a long time ago…..
Including the Department Stores…..
Screw the banks…..
I disagree … there is NO rip off.
Either you make the bad choices to be “ripped off, as you say” of not.
You are smart enough to not be drawn into “being ripped off”.
There is a very large measure of self-control and responsibility MISSING from this discussion.
I don’t know….
When is interest on a credit card exceeding 25 percent for someone who has a stellar credit rating not a rip off?
Hmmmm?
You answered your own question inside your original comment comment.
25% is for the stupid.
Like George Bailey appealing to Mr. Potter’s “good nature”
To which he replies, “I don’t have a good nature. I’m a businessman.”
re: “I’m a businessman.”
Try using that line at the Gate to Heaven …
Looks like the ball is in the hands of Congress. Unfortunately, most have sold their souls and first born to the financial industrial complex
Grok:
The U.S. National Bank Act (NBA) of 1864, specifically Section 85 (codified at 12 U.S.C. § 85), allows nationally chartered banks to charge interest rates permitted by the laws of the state where the bank is “located” (typically its home state or headquarters state), even when lending to borrowers in other states with stricter usury (interest rate cap) laws. This is known as the “interest rate exportation” doctrine — banks can “export” their home state’s more permissive (or nonexistent) interest rate limits nationwide.
The Statute (Section 85): It states that a national bank may charge interest “at the rate allowed by the laws of the State… in which the bank is located.” The Supreme Court has interpreted this to mean the bank’s home state governs the rate, preempting (overriding) the borrower’s state usury laws.Landmark Supreme Court Case: Marquette National Bank v. First of Omaha Service Corp. (1978)This unanimous 1978 decision established the exportation doctrine for credit cards.A Nebraska-based national bank (First National Bank of Omaha) charged Nebraska’s higher interest rates (up to 18%) on credit cards issued to Minnesota residents, where state law capped rates at 12%.A Minnesota bank (Marquette) sued, claiming violation of Minnesota usury law.The Supreme Court ruled in favor of the Omaha bank: Under Section 85 of the NBA, national banks can charge rates allowed by their home state, regardless of the borrower’s location. The Court emphasized that this promotes national uniformity and gives national banks a competitive advantage over state-chartered ones.This ruling effectively deregulated credit card interest rates for national banks, leading to a “race to the bottom” where many issuers incorporated or headquartered in states with no (or very high) usury caps, such as:
Delaware and South Dakota (no interest rate limits for most credit cards/bank loans).Banks like Citibank (South Dakota), Capital One (Virginia/Delaware), and others moved operations there to charge higher rates nationwide.Grok:
The U.S. National Bank Act (NBA) of 1864, specifically Section 85 (codified at 12 U.S.C. § 85), allows nationally chartered banks to charge interest rates permitted by the laws of the state where the bank is “located” (typically its home state or headquarters state), even when lending to borrowers in other states with stricter usury (interest rate cap) laws. This is known as the “interest rate exportation” doctrine — banks can “export” their home state’s more permissive (or nonexistent) interest rate limits nationwide.
The Statute (Section 85): It states that a national bank may charge interest “at the rate allowed by the laws of the State… in which the bank is located.” The Supreme Court has interpreted this to mean the bank’s home state governs the rate, preempting (overriding) the borrower’s state usury laws.Landmark Supreme Court Case: Marquette National Bank v. First of Omaha Service Corp. (1978)This unanimous 1978 decision established the exportation doctrine for credit cards.A Nebraska-based national bank (First National Bank of Omaha) charged Nebraska’s higher interest rates (up to 18%) on credit cards issued to Minnesota residents, where state law capped rates at 12%.A Minnesota bank (Marquette) sued, claiming violation of Minnesota usury law.The Supreme Court ruled in favor of the Omaha bank: Under Section 85 of the NBA, national banks can charge rates allowed by their home state, regardless of the borrower’s location. The Court emphasized that this promotes national uniformity and gives national banks a competitive advantage over state-chartered ones.This ruling effectively deregulated credit card interest rates for national banks, leading to a “race to the bottom” where many issuers incorporated or headquartered in states with no (or very high) usury caps, such as:
Delaware and South Dakota (no interest rate limits for most credit cards/bank loans).Banks like Citibank (South Dakota), Capital One (Virginia/Delaware), and others moved operations there to charge higher rates nationwide.
Please stick to what really ails us Mr. President. We don’t need further government interference in the economy.
While I understand the desire to tackle the “affordability” issue head on, the bigger problem, from my perspective, is twofold.
One, we no longer teach ANY kind of financial literacy in our schools and so people simply pile up debt buying things they cannot afford! Teaching young people how to actually WORK for money and how to make their money WORK for them would fix so many problems, IMHO! Of course, I realize this will never happen because an uneducated populace is MUCH easier to control and manipulate!
Two, there are millions of people in this country who are receiving all (or most) of their living expenses courtesy of the US Taxpayer, which has pushed the price of everything through the roof for the people who actually have to buy things with their own money! If they were removed from the “welfare rolls” the cost of everything would naturally fall as regular folks would shop around and look for better prices!
You hit on a very valid point.
Even over 60 years ago when when I was in high school and even the same when attending University, personal and household financial management HAS NEVER BEEN Taught … outside non-mandatory Home Economics classes which were advertised as “girls classes for cooking and house keeping”.
There are basic life support skills that need to be taught to students before they leave high school. Then again, it used to also be assumed that life skills were a PARENTAL Responsibility … hmmm think of whom have been those parents for the past 35+ years.
You beat me to it. Financial literacy was never taught in schools, it was learned at home and in the alleys.
What changed? The percentage of new consumers who were raised on the dole.
What percentage of consumers today (as opposed to say 1966) grew up in a household where all or nearly all basic living expenses were paid by the taxpayers?
Zohran Mamdani says “We are all socialists now!!!”
He carries a big stick
Hasn’t it always been the conservative position that price controls don’t work? This is just a form of price control on borrowed money.
President Richard Nixon did implement price controls—specifically, a 90-day freeze on wages and prices—on August 15, 1971, as part of his New Economic Policy (NEP).
This marked the first and only time in U.S. history that peacetime wage and price controls were imposed at a national level.
Although Nixon had long opposed price controls—calling them a “scheme to socialize America”—his decision was driven more by political necessity than economic conviction.
Nixon himself acknowledged the policy would not work in the long term.
Oval Office tapes reveal he called the controls “cosmetic” and admitted they “will never work in peacetime.”
Long-term outcomes:
Politically, however, the move was successful: Nixon won re-election in 1972 in a landslide, suggesting the public responded favorably to the appearance of decisive action.
He carries a big stick and speaks from a bully pulpit.
It won’t work because they’ll just shift to higher fees for regular banking to make up for it. The banks will always find a way, like through higher mortgage rates/fees.
I understand where Trump is coming from. High cc interest rates are a scam and price gouging. My wife and I have had a habit of paying our balance in full every month even since before we were married 26 years ago. Same with loans in general like cars.
But a lot of people live paycheck to paycheck and don’t have the self control or income buffer to do that. The idiot public school I used to teach at would have these school wide events to advertise credit cards and “responsible use”. Idiots. I always made it a point to walk the kids through how dangerous those things are and how the system is designed to snare them in a debt trap.
If Trump really wants to make a difference, he should have regular “no debt” round tables and invite Dave Ramsey to join as an advisor.
What you do is everyone who can demonstrate that they pay less than a certain amount of their income in cc interest drops one full tax bracket.
Everyone gets a 1098CC from their cc company listing how much cc interest they paid last year. Enter each one on your 1040 to get the total. If that total is less than x% of your AGI, you drop one full tax bracket.
The cc companies are preying on indebtedness. You break that cycle by promoting debt free lifestyles.
Btw, you could take this one step further and drop another bracket if your debt to income ratio is below xx%.
Already done. Wells Fargo, $15/mo. for checking account for small business, unless you keep $2000 balance.
A lot of people like to pretend that the affordability crisis is some external boogeyman, and our society’s addiction to consumerism has nothing to do with it.
Like you, we live as debt free as possible. Just a home mortgage at this point, with the goal of having it paid off before we retire.
I already pay 0% … and get cash back.
We pay our off our cards monthly so we don’t care what the rate is, and we earn cash.
Exactly. I haven’t paid for an airline ticket in 20 years because of CC mileage promotions.
Not sure on this.
I didn’t/don’t agree with the potted plant ‘forgiving’ contractually obligated student loans;
why should I agree with decreasing contractually obligated credit card interest payments?
Most so called contractually obligated debt can be forgiven if one of the parties enters bankruptcy, student loans cannot, thank you Bush. Unlike credit cards which are ‘based’ on one’s creditworthiness student loans are given out to anyone, like they are Halloween candy, because of the 2005 Bankruptcy Reform Act which prohibits student loans from being discharged in personal bankruptcy. There is no creditworthiness needed in giving $ 100,000 loans to teenagers. Student loans is another industry warped and destroyed by government intervention from both parties. Obama federalized the industry in 2010, but Bush is the creator of the student loan mess.
You shouldn’t agree. Because lowering the APR will have one and only one effect: people will spend more.
“Swiss credit cards are known for relatively low interest rates compared to many other countries, especially in the current low-rate environment of early 2026. The Swiss National Bank’s (SNB) policy rate is at 0%, and the statutory maximum interest rate for consumer credit (including credit card revolving balances) was lowered to 12% per annum effective January 1, 2026 (down from 13% previously). This cap applies to overdraft facilities like credit card balances carried over past the due date.”
“Most major issuers charge close to this maximum (typically 11.95–12% effective annual rate) when you don’t pay in full, but the real story is that Swiss consumers rarely carry balances — culture and advice strongly emphasize paying the full statement amount monthly to avoid interest entirely. There’s no credit score system like in the US, so approval focuses on income, residency, and stability rather than debt history.”
That’s so totally racist! Haha. The Swiss?! Bunch of white people.
/sarc
I don’t know yet how he plans to pull it off but I think I know what he is getting at. Most of these companies are headquartered in Delaware at a time Joe Biden was powerful. Joe and his children were very much involved. Is there some sort of kickback to Biden crime Inc? Would the kickback have to end when profits shrink drastically?
“Cash on the barrel head, that’s what my Pa always says.” Laura Ingalls Wilder
Since POTUS Trump has suggested 10%, the Bernie’s will be against.Bernie should cal, POTUS to write the legislation and get it pasted, same in the house w/AOC BUT WONT bc Tttttrrrrrrrrrruuuuummmmmmp
Maybe the credit card rate should be based on the Fed Rate by some formula. Same goes for interest on savings, CD’s and Money Market rates
What? It’s a personal loan without any collateral.