Trump Proposes 10% Cap on Credit Card Interest Rates

Summary

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

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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.

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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.”

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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.”

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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.”

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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.”

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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.”

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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.”

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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]…”

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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.

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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.”

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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.”

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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

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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.”

Transcript

[Dave Ramsey]

Brought to you by the EveryDollar app. Start budgeting for free Today, CBS News.com.

[George Kamel]

Reports that Trump has floated a 10% credit card interest rate cap. So here's what this could mean for consumers. So Trump came out and basically was.

[Dave Ramsey]

Like on Truth Social. So this was not like an executive order. This is just him on social media making money.

[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%. Right. So it's in the 20s. I mean, like, I think average is.

[Dave Ramsey]

25% APR right now.

[George Kamel]

Yeah. So it is pretty wild where it is.

[Dave Ramsey]

All right, so here, here's the what this could do. Vanderbilt research found that a 10% cap would save Americans $100 billion a year in interest. I mean, think about that. We're the nation is $1.2 trillion in credit card debt. That's wild. So 10% means the credit card companies will only make $120 million off consumers this year from the interest alone.

[George Kamel]

Yeah.

[Dave Ramsey]

That's not swipe fees. That's not annual fees. So let's do the math. You got a $5,000 balance. You'd pay about $42 a month in interest at 10%, but at 24%, which is close to the average $100 a month. So that really would help a lot of Americans who are struggling with this credit card debt. Yeah.

[George Kamel]

But the reality.

[Dave Ramsey]

Let's go to reality.

[George Kamel]

But reality is he can't do that.

[Dave Ramsey]

You can't just truth it into existence.

[Rachel Cruze]

Nor should he. This is when presidents decide in free market economies to start doing things like messing with things, forcing free markets to do things. You get Venezuela, you get Cuba. So everybody just needs to understand. This all sounds good until you look at the constitutionality of it. Is it a free market policy? That's first point. But I'll tell you what came to mind when I first saw this. As you guys know, I play a lot of pickleball. Play for three hours tonight. Thankfully, my knees are in good shape. But the knee analogy came to mind when I heard this. If someone has a torn meniscus, you can get away with not having surgery. And you might put a knee brace on. And the knee brace is somewhat helpful. So, George, you just laid out beautifully how 10% at a cap would be very helpful. I don't want to gloss over people that are hurting right now. I don't want to be insensitive.

[George Kamel]

Yeah.

[Rachel Cruze]

So it's like a knee brace.

[George Kamel]

Yeah.

[Rachel Cruze]

But here's the thing, 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.

[Dave Ramsey]

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[Rachel Cruze]

That'S JoinDeleteMe.com Ramsey 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. How many times do we get a call like, should I move my debt around? And we. So for that reason, this feels like politics to me. And he has every right to tweet or truth or whatever he wants to do. I think it's posturing. And, and I did this when Biden was president. 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. Yeah.

[Dave Ramsey]

Just a good reminder, this is for one year. So this cat would exist for one year.

[Rachel Cruze]

So then what?

[Dave Ramsey]

It's not law. It's not. It's not even executive order. He can't do that. It would have to be Congress rewriting federal law. There have to be a bill in place. Everyone has to agree, which I'm for.

[Rachel Cruze]

That if Congress does it and we're.

[George Kamel]

Talking about banks which make billions and billions. They're going to find a way to get their money.

[Dave Ramsey]

Well, what they'll do is raise annual fee. They will fee you to death.

[George Kamel]

Yes.

[Dave Ramsey]

And they'll make their money elsewhere.

[George Kamel]

Not like, oh, you're right. You know what, that would help people 10%. We didn't even think. We didn't even think about that. Thank you, Trump.

[Rachel Cruze]

So Right, Rachel, you know, they have, they have lobbyists money. They have the best lobbyists in the world. Do you think that legislation is going to pass? No.

[Dave Ramsey]

And of course, here's the best part. JP Morgan cfo. Of course, saying this is going to hurt people. Guys, we can't do this. It's going to hurt people who need Credit the most. Because what this means is tighter lending. These credit card companies aren't going to lend to the subprime borrowers. And so he's saying it's going to actually hurt everyone.

[Rachel Cruze]

Oh, you too are going to love this one. You're going to love this one. I saw this on Twitter.

[George Kamel]

Yeah.

[Rachel Cruze]

By the way, I refuse to call it X.

[Dave Ramsey]

Thank you.

[Rachel Cruze]

Somebody came out the day that this was. This came out. I saw this. They were like, well, what people don't realize is, is if they lower that interest rate, where do you think all the points come from? It comes. Which is right, by the way.

[George Kamel]

Yes.

[Rachel Cruze]

The point system is and the airline miles, all of it who aren't paying their debt off. And every month they're paying 22%. And that's where the miles and the.

[Dave Ramsey]

What's going to happen. They're going to slash rewards, devalue your points. Guys, the banks are smarter than you.

[Rachel Cruze]

There's no free lunch. You've ever heard that phrase? Yeah.

[George Kamel]

Yes.

[Rachel Cruze]

There's no free lunch. The only way to make this better is to pay off the debt, like.

[George Kamel]

We preach, is to get rid of it.

[Dave Ramsey]

It's so true. Here's a fun fact. Credit card rates are protected under federal law. It's called the National Bank Act. It's locked in by a Supreme court ruling from 1978. And what this does, the ruling, this is crazy. It lets banks charge whatever rate is allowed in the state they're based in. So guess where credit card companies go. Delaware and South Dakota where there are no rate caps.

[George Kamel]

So they can just go.

[Dave Ramsey]

It's like a loophole where they go, well, we can, we can charge 36%.

[Rachel Cruze]

So Delaware and South Dakota are the only two states in the country where there are no caps, no rate caps. And that's where all the president credit.

[Dave Ramsey]

Cards can override that without Congress rewriting federal law. And so there's no bill right now. Which means.

[George Kamel]

And the reason that passed in the in the 70s was what to give the free market and the banks to be able to. To have a free market economy.

[Rachel Cruze]

I do.

[George Kamel]

What I mean.

[Rachel Cruze]

I do know what you mean. The reason I'm pausing is, is I don't want to misspeak.

[George Kamel]

Yeah, yeah, yeah.

[Rachel Cruze]

Because I'd have to see.

[Dave Ramsey]

We'll have to look into Marquette versus.

[George Kamel]

First of all, I always ass Ken honestly has any answer to any history legislation.

[Rachel Cruze]

I'm like, well, I can in theory I can say that this is where lobbying comes in and the big banks convinced Congress and you know I mean, that's why we.

[George Kamel]

Okay, so here's, here's another dumb question. If there, if that is just platforming, if Trump really cannot do that, by law, to go in and do what causes him to come into the headlines and to, to throw it out there, just to stir the pot.

[Rachel Cruze]

Same thing when he says. And winks, winks and says he might run for a third term. He says whatever he wants to say.

[George Kamel]

Well, I know, but he's a showman.

[Dave Ramsey]

And so that's part of it.

[Rachel Cruze]

But I'm just saying.

[George Kamel]

Is it. Was there something else stirring that he's like, yeah, yeah.

[Dave Ramsey]

The midterms going to be going to the.

[Rachel Cruze]

Okay, let me tell you this. The number one buzzword in politics in America today. You guys know what it is?

[George Kamel]

Tell us.

[Rachel Cruze]

Affordability.

[George Kamel]

Oh, yeah.

[Rachel Cruze]

Both sides of the aisle. It is going to be the issue in the midterms. And, and so presidents do this. I don't begrudge him for it, but that's why he did it.

[George Kamel]

Sure.

[Rachel Cruze]

By the way, it was probably three in the morning. He probably just filet o fish sandwich, you know, brought to me by Secret Service. The guy never sleeps.

[Dave Ramsey]

Yeah.

[Rachel Cruze]

You know what I mean? And so he just gets on truth and he's like, oh, this is a good idea.

[Dave Ramsey]

Yeah, let's stir some things up.

[George Kamel]

Let's see what happens.

[Rachel Cruze]

What should be. Anyway, this sounds good.

[George Kamel]

Yeah. And you know, and I will say from my seat, the banks do screw people. But also, we have chosen as a country, as a consumer base to get into this amount of debt. Right.

[Dave Ramsey]

Nobody.

[Rachel Cruze]

That's right.

[George Kamel]

Nobody tortures you and forces you to sign for the car loan or the credit card or whatever. Right. We, as adults, if you're over 18, have chosen to put your signature on something that's true. To borrow.

[Rachel Cruze]

I don't begrudge the banks. You know why? The banks are just like the guy in the kiosk in the mall where I'm walking by with my wife.

[George Kamel]

He's like, hey, try this.

[Dave Ramsey]

And you have every right to just pass by.

[Rachel Cruze]

I can ignore him or I can stop and get sucked into it. And then the whole. Let the whole spiel sell me on whatever it is.

[Dave Ramsey]

Now Ken's got a new face lotion all of a sudden, Right?

[Rachel Cruze]

There you go. I want to say this. I'm with you.

[George Kamel]

A new keychain.

[Rachel Cruze]

But like you, I'm, I'm, I'm validating your point.

[George Kamel]

Yeah.

[Rachel Cruze]

Banks aren't bad. Banks are in the business of making money. Yeah.

[George Kamel]

But they do pry on people. They know, they know the tactics.

[Rachel Cruze]

I agree. But I'm saying we, let's get some personal responsibility.

[George Kamel]

Right, Right. Which is. Yeah, what I'm saying.

[Rachel Cruze]

By the way, Trump threw out the 50 year mortgage too. So he's just throwing stuff out there just to see what's next.

[George Kamel]

What was the math on that one that you did?

[Rachel Cruze]

It would be like, it'd be like.

[George Kamel]

A million dollars in interest or something. But was it? Yeah.

[Dave Ramsey]

Well, you essentially never pay it off. The principal doesn't go down until you're 41 years into the mortgage. That's when more is going to principal and interest. 41 years into a 50 year mortgage. It's crazy wild.

[George Kamel]

So yeah folks, I would say don't get your financial advice from presidents and or banks take away.

[Dave Ramsey]

I would, I would pay my credit cards off today and cut them up versus waiting and hoping that maybe the rates will go down and so I'll hang on the banks, they don't care about your financial piece.

[George Kamel]

No.

[Dave Ramsey]

And that's fine. 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.

[Rachel Cruze]

What's in your wallet, George?

[Dave Ramsey]

A debit card. Create your free every dollar budget today. The simplest way to budget for your life.