President Donald Trump wants a one year cap of 10% on credit card interest rates, saying Americans are being ripped off. And he’s not wrong.
Credit cards charging 20%, 30%, even 50–60% interest is insanity. At what point does the government step in, after people are buried in debt?
Credit cards are not free money. They’re not for everyone. Easy credit plus insane interest equals permanent debt. Call it modern slavery if you want.
And it’s not just adults getting caught in this cycle anymore. Surveys show younger consumers, especially Gen Z, are using buy now pay later services at surprisingly high rates, sometimes even more than credit cards during holiday shopping. A lot of it is driven by impulse buying and social media.
When kids are financing pizza, concerts, and everyday spending, that should tell you the system is broken.
Of course, the banks are outraged. Now they’re suddenly worried about consumers and small businesses losing access to credit.
Funny how concern only appears when profits are threatened.
Translation, the hamster might finally get off the wheel, and the bank won’t like that.
The system is built to keep people borrowing and paying interest forever. A cap threatens that game.
Maybe not everyone should have easy access to credit cards. Maybe people should qualify. And maybe legalized robbery shouldn’t be the business model.
