President proposes 10% credit card interest rate cap

Starting next week, a new plan from the President will cap credit card interest rates at 10% for one year—a major drop from the current U.S. average of about 20%. With the average credit card balance per borrower hovering around $6,500, financial experts say this move could save cardholders hundreds of dollars in interest payments. For example, someone with a $5,000 balance could save over $700 a year with the new cap. However, some analysts warn that credit card companies may respond by limiting borrowing or tightening lending, which could impact low-income consumers and push them toward less regulated options.