In September 2024, during a campaign rally in New York, President Donald Trump pledged to cap credit card interest rates at 10% — a dramatic reduction from the current average of 22.80%. This proposal generated significant buzz among Americans struggling with mounting credit card debt. But what does this mean for you, and what options exist right now to get relief from overwhelming debt?
The Trump Credit Card Interest Rate Cap Proposal
Following Trump's campaign promise, bipartisan legislation was introduced in Congress. The '10 Percent Credit Card Interest Rate Cap Act' was proposed by Senators Bernie Sanders (I-VT) and Josh Hawley (R-MO) in the Senate, with companion legislation introduced by Representatives Alexandria Ocasio-Cortez (NY-14) and Anna Paulina Luna (FL-13) in the House.
The bill would temporarily cap credit card interest rates at 10% for five years. However, as of February 2025, the legislation has stalled in both chambers of Congress and was notably absent from Trump's 'Big Beautiful Bill' signed on July 4. Financial industry lobbying and concerns about unintended consequences have made passage unlikely in the near term.
What This Means for Current Credit Card Holders
While a 10% interest rate cap would provide significant relief to credit card holders — potentially saving the average cardholder hundreds or thousands of dollars in interest annually — the reality is that no such cap currently exists. Credit card interest rates remain at historic highs, with the average APR exceeding 24% in early 2025.
Important: There is no current executive order or law providing direct credit card debt relief or forgiveness. The 10% interest rate cap remains a proposal, not a reality.
Additionally, the Trump administration has focused on reviewing and potentially rolling back various Consumer Financial Protection Bureau (CFPB) regulations. In early 2025, the CFPB shuttered its Washington D.C. offices and laid off approximately 200 employees, signaling a shift away from aggressive consumer protection enforcement.
Alternative Debt Relief Solutions Available Now
If you're struggling with credit card debt, you don't have to wait for legislation that may never pass. There are proven debt relief solutions available today, particularly if you have over $10,000 in unsecured debt.
Debt Settlement Programs
Debt settlement involves negotiating with creditors to pay less than what you owe. Professional debt settlement companies work on your behalf to reduce your total debt burden, often by 40-60% before fees. This option is best for those who:
- Have $10,000 or more in unsecured debt
- Are struggling to make minimum payments
- Cannot afford a traditional debt consolidation loan
- Want to avoid bankruptcy
- Can commit to a structured savings plan
Debt Consolidation
Debt consolidation combines multiple debts into a single loan, ideally at a lower interest rate than your current credit cards. This simplifies payments and can reduce the amount you pay in interest. This works best if you have good to excellent credit and can qualify for a competitive interest rate.
Credit Counseling
Nonprofit credit counseling agencies can help you create a debt management plan (DMP) that consolidates your payments and may reduce interest rates through agreements with creditors. This option preserves your credit better than debt settlement but requires you to pay back the full amount owed.
Balance Transfer Credit Cards
If you have good credit, you may qualify for a balance transfer credit card offering 0% APR for an introductory period (typically 12-21 months). This can provide temporary relief while you pay down your balance, but you'll need a plan to eliminate the debt before the promotional period ends.
Why Act Now Instead of Waiting
With credit card interest rates at historic highs and no immediate relief from Congress, waiting could cost you thousands of dollars in accumulating interest. Every month you carry a balance at 24% APR, your debt grows substantially — even if you're making minimum payments.
Example: On a $15,000 credit card balance at 24% APR, you'll pay approximately $300 per month in interest alone. That's $3,600 per year going to interest without reducing your principal balance.
Debt settlement programs can help you break this cycle. Top-rated debt settlement companies have helped millions of Americans resolve their debt faster and for less than they owed, providing real relief without the uncertainty of waiting for legislative action.
How to Choose a Debt Relief Company
If you decide that debt settlement or another debt relief program is right for you, it's crucial to choose a reputable company. Look for providers that:
- Are accredited by the American Fair Credit Council (AFCC) or International Association of Professional Debt Arbitrators (IAPDA)
- Have positive customer reviews and high ratings from the Better Business Bureau
- Clearly disclose all fees upfront
- Don't charge fees until they've successfully settled a debt
- Provide personalized consultation before enrollment
- Offer realistic timelines and expectations
The companies reviewed below have been vetted for their track record, customer satisfaction, fee structures, and debt relief success rates.
The Bottom Line
While Trump's proposed credit card interest rate cap could provide significant relief if it becomes law, there's no guarantee it will pass — and even if it does, it won't eliminate existing debt. For Americans struggling with over $10,000 in unsecured debt, proven debt relief solutions are available today.
Don't let high interest rates continue to drain your finances while waiting for political solutions. Explore your debt relief options now and take the first step toward financial freedom.
