The Ramsey Show Highlights

Episode: Trump Proposes 10% Cap on Credit Card Interest Rates
Date: January 26, 2026
Host & Guests: Dave Ramsey, George Kamel, Rachel Cruze
Theme: Analysis of Trump’s Proposed 10% APR Cap on Credit Cards—Legal Feasibility, Economic Impact, and the Deeper Roots of America’s Debt Crisis

Episode Overview

In this episode, the Ramsey team dives into former President Trump's recent social media statement advocating for a 10% cap on credit card interest rates. The hosts break down what such a cap could mean for American consumers, its feasibility under current law, and—most importantly—why policy solutions alone miss the root cause of the nation’s personal finance problems. The discussion is frank, witty, and firmly focused on personal responsibility.

Key Discussion Points & Insights

1. Trump’s Proposal & Current Interest Rates

• Trump’s Statement: Made on Truth Social, not official policy or law.
• Current State: Credit card APRs can reach up to 36%, with an average around 25%.
  • (00:23) George Kamel: “He’s saying credit card companies should just max their interest rates at 10% because now it can go, I mean, as high as 36%.”
• Savings Calculated:
  • Research from Vanderbilt suggests a 10% cap could save Americans $100 billion/year in interest.
    • (00:39) Dave Ramsey: “A 10% cap would save Americans 100 billion dollars a year in interest… We’re at 1.2 trillion in credit card debt.”
  • Example: $5,000 card balance at 10% APR would be $42 in monthly interest (vs. $100 at 24%).
    • (01:00) Dave Ramsey: “That really would help a lot of Americans who are struggling with this credit card debt.”

2. The Reality: Legal and Economic Obstacles

• Not an Executive Order: It can’t be unilaterally imposed; would require an act of Congress.
  • (01:18) George Kamel: “But reality is he can’t do that.”
  • (01:21) Dave Ramsey: “You can’t just truth it into existence.”
• Market Interference Concerns:
  • (01:24) Rachel Cruze): “Nor should he… when presidents in free market economies start forcing free markets to do things, you get Venezuela, you get Cuba.”
• Cap as a “Knee Brace” Analogy:
  • (02:03) Rachel Cruze: “It’s like a knee brace… the meniscus isn’t going to heal. The knee brace just helps a little bit. It doesn’t solve the problem. And this doesn’t solve the problem, which is Americans have a taste for debt.”

3. American Debt Culture: The Root Problem

• Interest Rate Tweaks Aren’t the Solution:
  • (03:03) Rachel Cruze: “Americans have a taste for debt and it's not going to solve the problems. The debt snowball solves the problem. The baby steps solve the problem. Lowering your interest rate doesn’t solve the problem.”
  • The hosts reaffirm that shifting balances or reducing APR is no substitute for eliminating debt.
• Political Posturing:
  • (03:15) Rachel Cruze: “This feels like politics to me... I think it’s posturing... I don’t care who the party is. I’m going to call strikes, I’m going to call balls. And this isn’t going to solve the credit debt problem.”

4. Likely Bank & Market Reactions

• Banks Would Adapt:
  • Higher annual fees or more penalties to make up for lost interest income
    • (04:04) Dave Ramsey: “Well, what they'll do is raise annual fees. They will fee you to death.”
  • Potential rewards devaluation
    • (05:06) Dave Ramsey: “What’s going to happen. They’re going to slash rewards, devalue your points. Guys, the banks are smarter than you.”
• Legislative Hurdles & Lobbying:
  • Vast influence of bank lobbyists makes passage unlikely
    • (04:16) Rachel Cruze: “They have the best lobbyists in the world. Do you think that legislation is going to pass? No.”

5. Credit for Subprime Borrowers

• Capping rates could lead banks to restrict “risky” lending, hurting those with weaker credit.
  • (04:24) Dave Ramsey: “JP Morgan CFO… says this is going to hurt people who need credit the most, because what this means is tighter lending.”

6. The Points and Rewards Tradeoff

• If banks can’t make money off interest, perks like cash back and airline miles will shrink or disappear.
  • (04:45) Rachel Cruze: “If they lower that interest rate, where do you think all the points come from?... The point system is... all of it—who aren’t paying their debt off.”
  • (05:12) Rachel Cruze: “There’s no free lunch. You’ve ever heard that phrase? ... The only way to make this better is to pay off the debt.”

7. What Federal Law Actually Allows

• National Bank Act & 1978 Marquette Supreme Court Ruling: Banks set rates based on their home state’s laws—most move to states with no caps (Delaware, South Dakota).
  • (05:21) Dave Ramsey: “Credit card rates are protected under federal law… lets banks charge whatever rate is allowed in the state they’re based in.”
  • (05:42) George Kamel: “So they can just go…”
  • (05:48) Rachel Cruze: “Delaware and South Dakota are the only two states in the country where there are no caps… That’s where all the... credit [cards]…”

8. Political Theater & Public Sentiment

• Trump’s proposal is viewed as a way to tap into the electorate’s focus on “affordability” for attention during a political season.
  • (07:04) Rachel Cruze: “Affordability… Both sides of the aisle, it is going to be the issue in the midterms. And, and so presidents do this.”
• The show affirms that no president or bank will fix Americans’ money management.

9. Personal Responsibility as the Real Solution

• No One Forced Americans Into Debt:
  • (07:43) George Kamel: “Nobody tortures you and forces you to sign for the car loan or the credit card… We as adults… have chosen to put your signature on something.”
• Ultimately, It’s Up to the Consumer:
  • (09:00) Dave Ramsey: “I would pay my credit cards off today and cut them up versus waiting and hoping that maybe the rates will go down…”
  • (09:11) Dave Ramsey: “The problem, they’re not going to solve your debt problem. And the system is designed to keep you dependent on lenders and on lawmakers. So the best part is you don’t have to be dependent. You can break free from the system and just say I’m going to use my own money.”

Notable Quotes & Memorable Moments

• On Market Solutions vs. Reality:
  • (01:21) Dave Ramsey: “You can’t just truth it into existence.”
• The “Knee Brace” Debt Analogy:
  • (02:03) Rachel Cruze: “It doesn’t solve the problem, which is Americans have a taste for debt.”
• Banks Will Outmaneuver Caps:
  • (05:06) Dave Ramsey: “They’re going to slash rewards, devalue your points. Guys, the banks are smarter than you.”
• No Victims, Only Choices:
  • (07:43) George Kamel: “Nobody tortures you and forces you to sign for the car loan or the credit card or whatever.”
• Candid Takeaway:
  • (09:00) Dave Ramsey: “Don’t get your financial advice from presidents and/or banks.”

Key Timestamps

• 00:07 – 01:17: Trump’s Proposal, Average Interest Rates, Possible Consumer Savings
• 01:18 – 03:03: Legal Limitations, Free Market Concerns, “Knee Brace” Analogy
• 03:03 – 04:16: Debt Culture, Political Motivations, Congressional Reality
• 04:16 – 05:12: Bank Reactions (Fees, Lobbyists), Credit Subprime Concerns
• 05:12 – 06:14: Points & Perks, Federal Law on Interest Rates, Bank Relocation
• 06:41 – 07:28: Political Theater, Election Cycle Focus
• 07:30 – 09:11: Personal Responsibility, The Consumer’s Choice, Ramsey’s Final Advice

Tone & Final Message

The conversation is lighthearted yet direct, occasionally sarcastic about the nature of political promises but always returning to a core Ramsey doctrine: real peace with money comes from personal financial responsibility, not government regulation or industry “innovation.” While the hosts acknowledge the pain of high-interest debt, they argue firmly that only behavior change—not policy tweaks—can offer Americans real relief.

Memorable Sign-off:
(09:24) Rachel Cruze: “What’s in your wallet, George?”
(09:26) Dave Ramsey: “A debit card. Create your free every dollar budget today. The simplest way to budget for your life.”