How Trump Will Handle Affordability
A proposal supported by Donald Trump to cap credit card interest rates is being promoted as a way to reduce financial strain on American households while encouraging stronger consumer participation in the economy.
Political consultant Dick Morris discussed the plan during a recent appearance on Newsmax, saying high interest rates have quietly become one of the biggest obstacles facing working and middle-class families.
Rising Debt, Limited Breathing Room
According to Morris, the average American household now carries close to $10,000 in credit card debt, a burden made heavier by interest rates that often exceed 20 percent.
At those levels, Morris said, a significant portion of a family’s income goes toward interest payments instead of everyday necessities such as groceries, utilities, housing, or transportation.
Supporters of the proposal argue that excessive interest costs reduce purchasing power, slow economic activity, and make it harder for families — especially retirees and those on fixed incomes — to maintain financial stability.
The Proposed 10 Percent Interest Cap
Under the plan, Trump would seek to impose a federal cap of 10 percent on credit card interest rates. That figure is far lower than what many major issuers currently charge and closer to traditional limits once enforced in many states.
Morris said lower rates would allow families to keep more of their earnings, helping them pay down balances faster and freeing up money for other household needs.
Why Current Rates Stay So High
Morris also explained how credit card companies are able to avoid most state-level interest limits. While many states enforce usury laws capping interest near 10 percent, large card issuers often base their legal operations in Delaware, which does not impose such caps.
Because of long-standing court rulings, companies can apply Delaware’s rules nationwide, even when cardholders live in states with stricter limits.
A National Standard for National Companies
According to Morris, Trump’s proposal would treat credit card issuers as national corporations, subject to a uniform federal standard rather than a patchwork of state loopholes.
The interest rate cap, he said, would apply broadly — including to accounts in default — closing gaps that currently allow higher penalty rates.
Part of a Larger Affordability Agenda
Morris described the proposal as part of Trump’s broader focus on affordability, aimed at expanding economic participation rather than restricting access to credit.
With credit card balances and interest rates near historic highs, the proposal has renewed discussion about consumer protections, household finances, and how federal policy can support long-term economic stability.
