The Ramsey Show Highlights Trump Proposes 10% Cap on Credit Card Interest Rates
Jan 26, 2026
They unpack a presidential proposal to cap credit card interest at 10% and compare it to current APRs near 24%. They explore how such a cap could save consumers billions and how banks, rewards programs, and lending would likely respond. They discuss legal and market limits to rate caps and whether political motives or real solutions are driving the idea.
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Potential Big Savings From A 10% Cap
- A 10% APR cap could save Americans about $100 billion a year in interest according to Vanderbilt research.
- That would drastically reduce monthly interest on typical balances compared with current ~24% APRs.
Knee Brace Analogy For A Cap
- Dave Ramsey uses a torn-meniscus and knee-brace analogy to describe a 10% cap as a temporary help.
- He says the brace helps a little but doesn't heal the underlying problem like paying off debt does.
Fix Debt By Paying It Off
- Lowering interest rates won't fix the underlying problem of overspending and reliance on debt.
- Dave Ramsey and the hosts recommend using the debt snowball and the baby steps to eliminate debt instead.