President Donald Trump proposed capping credit card interest rates at 10% for one year, starting January 20, a move that has sparked debate about its potential impact on Americans grappling with rising debt. The proposal comes as millions face increasing financial strain, exemplified by individuals like Selena Cooper, 26, a former paralegal who lost her job after the U.S. government shutdown.

Cooper, who resides in Columbia, South Carolina, saw her credit card debt escalate to $6,000 after missing payments in October. She said that Capital One and American Express subsequently raised her interest rates due to late payments. According to Cooper, the rate on her Capital One cards doubled to 16%, while her American Express rate increased from 10% to 18%.

Cooper acknowledged that Trump's proposed cap "would help a little bit, but it's still not going to get me out of debt." She is now relying on income from her photography business.

Credit card debt has become a significant concern for many Americans. The rising interest rates, coupled with job losses and economic uncertainty, contribute to the growing burden. A cap on interest rates could offer temporary relief to some, but experts caution that it may not be a comprehensive solution.

The implications of such a cap are multifaceted. While it could lower borrowing costs for consumers, it could also lead to reduced credit availability, particularly for those with lower credit scores. Banks might become more selective in issuing credit cards, potentially exacerbating financial challenges for some individuals.

Furthermore, the long-term effects of a temporary cap are uncertain. Once the cap is lifted, interest rates could rebound, potentially leaving consumers in a worse position than before. Sustainable solutions, such as financial literacy programs and debt counseling services, may be necessary to address the underlying issues contributing to credit card debt.