President Trump warns credit card companies ahead of January interest rate cap of 10%
President Trump said credit card companies would be in violation of the law if they do not comply with the 10% interest rate cap by January 20th.
Credit card debt can be embarrassing. Interest rates are often very high. A maxed-out card may feel like a symbol of bad choices or lax financial discipline.
And card debt is obviously especially embarrassing for people who earn a lot.
About two-fifths of consumers with credit card debt have lied about the amount they owe, according to a 2025 study from LendingTree, an online lending marketplace.
Among people with annual incomes of $100,000 or more who have credit card debt, half are more likely to lie about it.
Credit card interest rates have been a hot topic since President Donald Trump called for a temporary 10% cap on credit card interest rates on January 9th. That’s about half the current average card interest rate, which hovers just under 20%, according to Bankrate.
Experts say credit card balances are different from other debts when it comes to guilt and shame.
A homeowner with a 4% mortgage rate might brag about it to their neighbors. Young adults may lament student loan balances reaching five digits.
But compared to these debts, credit card debt can feel like a symbol of careless spending, poor planning, and poor budgeting.
“Many people view credit card debt as a sign of failure, or as a sign of weakness or lack of discipline,” Matt Schultz, chief consumer finance analyst at LendingTree, said in a 2025 interview with USA TODAY.
America has $1.2 trillion in credit card debt
LendingTree reports that nationwideAs of Q3 2025, there were $1.2 trillion in active credit card balances. Approximately 46% of cardholders carried a balance for at least one month in the past year. The average amount of debt owed by cardholders is $7,886.
LendingTree surveyed 2,000 consumers in March and asked them about their credit card habits. Some of the findings include:
- 39% of people with credit card loans said they had lied about a credit card loan, mostly to a partner, parent or sibling.
- Six-figure income earners with credit card loans were more likely to lie about credit card loans than those with incomes under $30,000, by a difference of 50% to 32%.
- 28% of consumers with credit card debt said they haven’t talked to anyone about it. Women were more likely to remain silent than men.
Even high-income earners have credit card debt.
Credit card debt may seem like a problem limited to low-income Americans. However, a study by LendingTree found that half of people with six-figure incomes have credit card loans, while 39% of people with incomes under $30,000 have credit card loans.
“People don’t expect people who make a lot of money to have a lot of credit card debt,” Schultz said. “And the truth is, just because you have a lot of money doesn’t mean you’re good at managing it.”
If you’re struggling with card debt, here are some expert tips to help you get out of it.
pay more than the minimum amount
If you are determined to pay off your card balance in full, be proactive. Ted Rothman, senior industry analyst at Bankrate, said the minimum payment calculated by card issuers typically covers only the interest owed and 1% of the balance.
Experts say that to truly solve the problem, we should stop charging new cards to our cards. Then increase your payments. Consider that your monthly total equals 5% of your gross income. Or pay twice the minimum payment in the first month. Then, pay the same amount in the month your balance decreases.
Divide and Conquer Cards
Experts say that if you have multiple credit cards, you should pick one and pay it off seriously. Start with the card with the highest interest rate or the lowest balance.
If you choose the card with the lowest balance, you can pay it off quickly and win a psychological victory. Choosing the card with the highest interest rate means you’ll pay less interest over time.
Get a zero APR credit card
The average interest rate on credit cards is currently over 20%, but it’s also possible to sign up for a card that doesn’t charge any interest for 15, 18, or 21 months.
Experts say zero APR cards can be a powerful tool for paying off debt because you don’t pay interest during the promotional period.
However, please be careful. Once the promotion ends, your card company will charge interest on your remaining balance.
call your credit card company
Another way to pay off your card balance faster is to convince your credit card company to lower your interest rate. Call your provider and ask if they would consider lowering your rate.
If that doesn’t work, consider contacting a nonprofit organization like Consumer Credit Counseling Service. A credit counselor will negotiate a lower interest rate on your behalf.
