“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,” said President Donald Trump in a Friday evening Truth Social post.
Credit card balances in the U.S. hit a record high in 2024, based on data released by the Federal Reserve Bank of New York’s Center for Microeconomic Data. Figures from the New York Federal Reserve for the third quarter last year showed that Americans carried more credit card debt than ever, about $1.23 trillion.
In 2023, before balances hit that high, Audacy reported that a majority (72%) of high-income American households with an annual income of $100,000 or more and credit card debt have carried that debt for more than a year, citing a report released by Bankrate.
A report from the Consumer Finance Protection Bureau released last year showed that 195 million people in the U.S. with credit cards in 2024 were assessed $160 billion in interest charges. Last September, Bankrate said its Retail Cards Study for 2025 revealed that the Annual Percentage Rate (the cost of borrowing money, including interest) remained above 30%.
“Card issuers say they charge higher interest rates on retail cards because these cards are easier to get, and delinquencies have increased in recent years,” said Ted Rossman, Bankrate senior industry analyst. “But these are really high rates, and they often apply to all customers who carry balances.”
In fact, a quarter of the cards included in Bankrate’s study increased rates even after the Federal Reserve Bank cut rates at the end of 2024. Typically, rate cuts would be followed by a drop in credit card, auto loan and home equity line of credit (HELOC) rates.
By last February, Audacy reported that most Americans had at least five credit cards. In September, we reported that average FICO scores dropped for a second year in a row.
In his post, Trump said credit card rates “festered unimpeded during the Sleepy Joe Biden Administration,” referring to former President Joe Biden. He said that he wants to institute a one-year cap on “Credit Card Interest Rates of 10%” effective Jan. 20, the one-year anniversary of his second inauguration as president.
His announcement comes days after Gallup polling results showing majorities of Americans “foresee negative outcomes in most of 13 economic, political, societal and international areas,” this year were released. Audacy reported on other polling in December that showed 60% of Americans said the economy wasn’t working for them and 57% believed the country was in a recession, though it is not.