Americans are grappling with unprecedented levels of credit card debt, a staggering $1.17 trillion. Economic pressures and inflation have forced many to rely on credit for essential expenses, creating a cycle of debt that benefits credit card companies. These companies have responded by significantly increasing interest rates, generating immense profits while consumers struggle.

In 2022, credit card companies earned a staggering $130 billion in interest and fees. This windfall comes despite these institutions borrowing money at rates below 4.5% from the Federal Reserve, yet charging consumers an average of 28.6% interest. This stark disparity highlights the exploitative nature of current credit card practices.

To address this issue, bipartisan legislation has been introduced to cap credit card interest rates at 10%. This measure aims to provide immediate relief to working families burdened by high interest payments, allowing them to regain financial stability. This cap would offer significant savings for borrowers, potentially over $7,000 over the life of a loan, while still allowing financial institutions reasonable profits.

Critics, primarily major credit card companies, argue that capping interest rates could restrict access to credit for low-income individuals. However, proponents of the legislation counter that it protects consumers from predatory lending practices that trap them in a cycle of debt. A recent poll indicates that a significant majority of Americans, 77%, support capping credit card interest rates.

This proposed legislation aligns with a campaign promise made by former President Donald Trump to limit interest rates to 10%, offering temporary relief for Americans facing financial strain. This bipartisan effort seeks to provide tangible financial relief to working families struggling with excessive interest rates. Passing this legislation is seen as a crucial step towards addressing the growing credit card debt crisis and promoting economic stability for working Americans.