Can Trump's proposed 10% credit card interest rate cap really happen?

CINCINNATI — President Trump took to social media to announce a one-year cap on credit card interest rates at 10%, effective Jan. 20th. But can it really happen?

Current rates nearly double the proposed cap

Currently, the average credit card interest rate is nearly 23% — so a 10% cap would be a significant change. Experts say it's not as simple as the president says, and that several steps need to be taken first.

Congressional approval required

Incline Wealth's John Bovard told us this won't happen overnight.

"It would still have several different steps before it could be implemented ... one of those major steps is that it would have to get passed through Congress," Bovard said.

Before President Trump's announcement, there were already bills in both the Senate and House of Representatives proposing a 10% cap on credit card rates. Neither has advanced out of committee, which makes a Jan. 20th start date unlikely.

"Congresspeople will have to go back and determine what this vote might mean for the people that live in their districts and in their states," Bovard said.

Lawmakers introduced the bills months ago, but so far, they haven't moved forward.

"The wheels of legislation can turn pretty slowly," said Sara Rathner with NerdWallet. "So we don't know yet if this sort of wish would accelerate the process in any way."

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Potential consequences for consumers

For people with credit card debt, a rate cap may sound appealing.

"There could be some consequences to this that are unexpected," Rathner said.

Banks are already pushing back. Fifth Third Bank provided a statement from its trade group, representing many banks and credit card companies, saying in part:

"A 10% interest rate cap would reduce credit availability and be devastating for millions of American families and small business owners who rely on their credit cards."

Experts say a cap could also mean tighter approvals or fewer perks.

"Your credit card's rewards points and the perks that you get for credit cards could be eliminated or drastically reduced," Bovard said.

WATCH: Experts recommend taking action now, rather than waiting for lawmakers to act

Advice from experts

In the meantime, experts say, don't wait for lawmakers to act. There are steps you can take immediately, including:

• Decide which debt to tackle first — often the highest-interest card
• Set a fixed monthly amount you'll pay toward that balance
• Automate payments so you never miss a due date
• Consolidate balances with a lower-interest personal loan
• Use a balance transfer credit card with 0% interest

"(Balance transfer credit cards), if you can qualify for them, offer 0% interest promotions for 12 months or more in many cases," Rathner said.

Bottom line

For now, this is just a proposal. Congress would have to approve it before it becomes law, but that doesn't mean you should wait.

Start tackling your debt now, and avoid paying more in interest, so you don't waste your money.

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