Should Trump trust Sanders?
Senator Bernie Sanders (I-Vt.) has announced plans to introduce new legislation aimed at capping credit card interest rates at 10%. This proposal, which echoes a similar stance taken by President-elect Donald Trump during his campaign, is drawing attention as credit card debt continues to rise in America.
During the 2024 campaign, Trump voiced support for capping credit card interest rates at 10%, calling it a necessary move to protect consumers from exorbitant fees. Trump argued that the current interest rates, which can reach as high as 30%, were unfairly burdening everyday Americans. He framed the policy as a temporary measure to help people “catch up” financially. “We can’t let them make 25 and 30 percent,” Trump said in his campaign speeches. Now, Senator Sanders is following through with his own legislative push, though it remains unclear whether his proposal would also be temporary or permanent.
As of the third quarter of 2024, American consumers owed a staggering $1.17 trillion in credit card debt, a situation that many say highlights the need for reform. The average credit card interest rate in December 2024 was reported to be 24.43%, according to data from LendingTree, further emphasizing the pressure placed on American families by high interest rates.
However, Republicans are cautious about proposals like Sanders’ that could limit credit card companies’ ability to charge higher interest rates. Many conservatives worry that capping interest rates could have unintended consequences, such as restricting access to credit for those who rely on it, especially during tough economic times. Top Trump ally Senator Tim Scott (R-S.C.), incoming Chairman of the Senate Banking Committee, has been a strong critic of regulatory overreach in the credit card industry. Earlier this year, Scott opposed the Biden administration’s efforts to limit credit card late fees, arguing that such moves would ultimately make credit harder to obtain and increase costs for responsible borrowers.
For Republicans, the focus remains on ensuring that policies foster a healthy, competitive credit market while also protecting consumers from predatory practices. With Sanders’ proposal gaining traction, the debate on how best to address the growing burden of credit card debt will likely become a key issue in the coming months. As President Trump prepares to take office again, it remains to be seen whether he will support Sanders’ legislation or take a different approach to addressing America’s credit crisis.