LAS VEGAS (KTNV) — President Trump's proposal to cap credit card interest rates at 10% for one year is drawing significant attention from consumers wondering how it might affect their finances.
The numbers tell a compelling story. With average credit card interest rates currently hovering around 22%, consumers carrying a $5,000 balance pay approximately $1,100 per year in interest alone. Under a 10% cap, the interest would drop to about $500 annually, resulting in a savings of roughly $600.
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I hit the streets to hear what people think about the proposal and found mixed reactions.
"Their interest rates are really out of line," one person told me.
Another said they're "trying to get you in a hole that you can't get out and they've got you wrapped around their fingers."
Supporters say a 10% cap could give consumers real relief, helping families pay down debt instead of watching interest pile up. But critics argue it wouldn't be easy to implement.
Banks could push back, tighten who qualifies for credit, or raise fees elsewhere to make up the difference. Some experts warn that lower-income borrowers could be hit the hardest.
Steve Budin, a financial expert, expressed skepticism about the proposal's chances.
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"The proposal President Trump made about lowering credit card interest rates is simply that — a proposal. In order for it to be effective, it has to be passed through Congress and legislation. I find that highly doubtful," Budin said.
While the proposal sounds simple — cap the rate — the reality is far more complicated, with big questions about whether it could pass and who could be affected.
Whether or not this proposal ever becomes reality, experts say one way to free up extra cash right now is to check your subscriptions or memberships, especially ones you don't use anymore. Cutting just a few could save $50 to $100 a month — money that could go straight toward paying down credit card debt.
How can I get rid of my credit card debt?
Nevada ranks 11th in the nation for credit card debt, with the average resident carrying nearly $7,700 in balances, according to a LendingTree study from late last year. For many families, these numbers translate into real financial stress.
If you need help getting out of debt, the non-profit organization Money Management International (MMI) offers services to help locals become debt-free. I've previously reported on MMI and spoken with locals who have used their services successfully.
MMI can help you get out of debt by working with both you and your creditors to lower interest rates and create a plan to become debt-free. MMI counselors emphasize the importance of tracking your spending habits.
"You need to sit down 15 to 30 minutes everyday and go over your finances," an MMI counselor said.
According to MMI, younger adults and middle-class households are increasingly feeling the pressure of rising costs and high interest rates. However, with the right plan and support, getting out of debt is still possible.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.