KSHB 41 reporter Elyse Schoenig covers the cities of Shawnee and Mission. She also focuses on issues surrounding the cost of health care, saving for retirement and personal debt. If you have a story idea for Elyse, you can reach out to her here.
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President Donald Trump set a deadline for banks to cap credit card interest rates at 10% starting Tuesday, though it’s still unclear whether we can expect an executive order or legislation.
When asked about potential penalties last week, White House Press Secretary Karoline Leavitt said she didn't "have a specific consequence to outline ... but certainly this is an expectation and, frankly, a demand that the president has made."
A researcher who studied this proposal when it first surfaced a few years ago said it could save Americans roughly $100 billion.
But one Kansas City-area economist warns the policy could have unintended consequences for consumers.
"If you cap the rates, then it's obviously less profitable for the credit card company," said Chris Kuehl, an economic expert. "So, the credit card company is going to limit who it gives credit to."
Kuehl said while the proposed cap sounds beneficial, it could negatively affect the economy overall.
"There needs to be some attention paid to not only how it affects the consumer, but how it affects the merchant," Kuehl said.
KSHB 41 reporter Elyse Schoenig spoke with shoppers in downtown Overland Park about their credit card use ahead of the proposed cap.
Lori Goodman was balancing shopping and staying warm at Crafted on Monday morning.
"We're stopping at all the stores that are open because it's cold out," Goodman said.
Goodman said she's learned important lessons as a credit card holder over the years.
"Definitely had to learn it was easy to go over on that credit spending limit that's on the card, and living within our means and within our budget," Goodman said.
She emphasized the importance of paying off balances monthly and using credit cards strategically.
"We do pay it off every single month," she said. "We do earn points with our credit card to be able to buy other things."
Goodman also recommended giving yourself time to make payments before interest kicks in. She also suggested spending limits based on budget needs.
"Just know that you're not locked into one credit spending limit on it, you can adjust it as your budget needs you to," Goodman said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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