What is happening with credit cards and why voters care
Card borrowing costs have climbed past 20% on average, close to double their level ten years ago. Combine that with a recent uptick in inflation and broader cost pressures, and the delinquency rate is heading toward its highest point since 2011.
That squeeze shows up in household budgets. In Pensacola, Florida, 36-year-old voice actor Dakota Bradley said that during the last eight months he piled on more than $12,000 in credit card balances. "It comes down to a choice of putting food on the table or covering the credit card payment," Bradley said. "With these interest rates, it's unsustainable." He backed Democrats down-ballot for the first time and said he now trusts them more than Republicans on affordability.
The strain is widespread. A Century Foundation review found more than 40% of adults carry balances from month to month, and a Pew Research Center survey indicates that roughly one-third think about their debt nearly every day. Republican strategist Mark Weaver summed it up: "Rising credit card debt is one tentacle of this octopus of affordability that so many voters feel wrapped around them."
The political response
With control of Congress hinging on tight races, both parties are leaning into the affordability fight. Democrats including Texas Senate candidate James Talarico and Florida's Angie Nixon support limits on what card issuers can charge, with Nixon urging an 8% ceiling. Progressive figures Alexandria Ocasio-Cortez and Bernie Sanders have endorsed a 10% cap.
On the right, President Donald Trump rolled out a 10% limit during the closing phase of the 2024 presidential race and brought it back at the beginning of 2026, while targeting the fees that merchants pay to accept cards. He praised Kansas Senator Roger Marshall for taking on what he called "predatory" lenders. Anna Paulina Luna, a Republican incumbent in the House, is backing bipartisan legislation to cap credit card interest rates at 10%. Cross-party coalitions in Congress have filed measures in the House and Senate to enact those caps, along with proposals to enhance competition and cut swipe fees.
Banks push back, voters weigh in
Major banks have slammed the cap ideas, arguing a hard ceiling would force them to sharply curtail access to credit for the borrowers who rely on it most. JPMorgan Chase & Co.'s Chief Executive Officer, Jamie Dimon, labeled the proposal an "economic disaster." The White House has stepped back from a cap, but public backing is broad, at least for a time-limited plan.
A Harvard CAPS/Harris Poll found 72% support for a one year 10% cap, with similar approval among Democrats and Republicans. The survey of 1,725 registered voters was conducted May 29 to May 31, 2026.
When economic pressures tighten, smart investors look for tools that help manage risk. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.
Why it matters for your portfolio
Affordability is still the centerpiece. Inflation has cooled from pandemic peaks, but the Iran war has triggered another round of price increases. Earlier this year, outsized tax refunds helped counterbalance pricier gasoline, but that buffer has since diminished.
After inflation, wages have fallen for six consecutive months, and the personal saving rate in September dropped to the lowest since 2022. "In 2022, it's likely that Americans still had that Covid buffer, all the cash built up from stimulus payments and other ways that they were able to cover the rise in prices," said Mattie Duppler of the Ledger Project on Bloomberg Television.
Borrowers are shifting how they finance purchases. Urban Institute senior fellow Breno Braga said more low-income consumers are turning to alternative options with looser standards, led by interest-free Buy Now, Pay Later. Subprime borrowers are also moving to personal loans, which typically carry lower rates than cards, according to VantageScore Chief Economist Rikard Bandebo. Even so, VantageScore's internal data show personal loan delinquencies rose 7.8% in September from a year earlier, the steepest increase since 2024.
Policy and rate risk both run hot. The Federal Reserve has started raising its benchmark rate again, which can push card APRs higher. Reductions in federal aid for food and healthcare embedded in Republicans' One Big Beautiful Bill Act could further strain households already burdened by debt. Voter skepticism remains: "Even if Democrats do get into office, nothing changes," said Ashton McDermott, 29, of Allentown, Pennsylvania. He said he is choosing Democrats as "the less sharp edge of the sword."
The bottom line: a bipartisan push, with an assist from Trump, could reshape credit card terms. Without new laws, there is little relief on deck. That path will flow straight into lender profitability, credit availability and, by extension, financials exposure in your portfolio.
Learning how evolving technology can sharpen investment decisions is a worthwhile use of time. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.
