WEST PALM BEACH, Fla. — A recent suggestion by President Donald Trump directed at credit card companies to reduce interest rates to 10% by Jan. 10 has come and gone without rates moving.
According to Bankrate, the average rate currently is 19.62%.
WATCH BELOW: Capping credit card interest rates: What are the pros and cons?
“It seems so high,” says Ricardo Gonzalez, who told WPTV in West Palm Beach on Wednesday. “Such a large amount that you’re not attacking the principal so much and paying more and more interest.”
Many consumers would likely be in favor of capping interest rates.
“All of us, especially people carrying debt, what more could you want?” says Stephen Kates, personal and professional finance expert at Bankrate.com
He said capping rates is not easy and does carry risks to many consumers who rely on credit, effectively rejecting most new applications and reducing credit limits.
Scripps News Life
Trump’s 10% credit card interest rate cap meets resistance from big banks
JP Morgan Chase CEO Jamie Dimon echoed that point at the annual World Economic Forum in Davos, Switzerland.
“In the worst case, you would have a drastic reduction of the credit card business,” Dimon said. “It would remove credit from 80 percent of Americans.”
Kates said 61% of people with credit card debt have been carrying it for a year, and those consumers need to focus on reducing debt.
“Whatever strategy you want, just get started, a little bit of extra money, just start doing it,” Kates said.
Matt Sczesny is determined every day to help you find solutions in Florida’s coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.