As Trump Targets Credit Cards With 10% Black Swan Cap It's Time To Look At Other Options

"One of the most loathed antagonists among the works of William Shakespeare is his Shylock loan shark from The Merchant of Venice. While modern interpretations have focused more on his being a victim of anti-Semitism, Shylock's loan shark activities were influenced by Shakespeare's own father, John. John Shakespeare was a glovemaker, real estate speculator, and farmer, whose business dealings occasionally landed him in court with charges of usury. The legal limit in Stratford at the time was 10%, and John Shakespeare frequently charged 20%."

"From 36% APR down to 10%? During his 2024 campaign, President Trump added a proposal to cap "high interest rate rip offs" charged by credit card companies at 10%. Earlier in January 2026, he returned to this topic and has since proposed a one-year 10% cap. Despite pushback from the banking industry, a bipartisan bill in Congress called the 10 Percent Credit Card Interest Rate Cap Act"

"A Debt Reduction Opportunity In either scenario, there is a good chance that a 10% interest rate cap on credit cards will go into effect. During this time, some may go on spending sprees, thinking that a capacity to handle the lower interest can liberate them from scrimping and saving. Wiser heads that have been caught in the debt spiral of credit card interest can take the opportunity to drastically reduce, if not eliminate their debt loads entirely. For those earning enough to pay at"

John Shakespeare charged 20% interest despite a Stratford legal limit of 10%, illustrating historical usury practices. Modern credit card APRs often range from 23% to 36%, creating substantial debt burdens. President Trump proposed a one-year 10% cap on high credit card interest, and a bipartisan 10 Percent Credit Card Interest Rate Cap Act has been developed with sponsors across parties. The bill could move quickly through Congress given political attention. A temporary 10% cap would likely prompt both increased consumer spending and significant opportunities for indebted consumers to reduce or eliminate credit card balances.

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