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Personal loan debt reached $305 billion in the second quarter (Q2) of 2019 and continues to grow faster than any other credit product. While total personal loan debt rose 12% in the past year, the average personal loan balance rose 3% over five years to an average of $16,259 in Q2 2019, according to Experian data.
As part of our ongoing analysis of personal debt in the U.S., we'll dive deeper into personal loan balances of consumers who currently have a personal loan, and take a look at how those balances are distributed across states and across balance amounts.
One feature of personal loans in the U.S. stands out: Consumers by and large are not carrying excessively high personal loan balances. The bulk of personal loan balances among U.S. consumers—nearly 80%—are $20,000 or lower. This figure has fallen a few percentage points in recent years, however, while the balance of personal loans $20,000 or higher has grown 14% since 2015.
Consumers who take personal loans may be consolidating existing debt, paying for a planned large purchase or wedding, or may be covering unexpected or emergency expenses, such as a car repair or medical payment.
Almost 80% of all personal loan balances are $20,000 or lower
| Historical Percentage of Personal Loan Balance Amounts | ||||
|---|---|---|---|---|
| Year | Average Balance | $20K or less | $20K - $40K | $40K or more |
| 2019 | $16,181 | 79.7% | 11.8% | 8.5% |
| 2018 | $16,263 | 80.1% | 11.4% | 8.5% |
| 2017 | $16,421 | 80.4% | 11.1% | 8.5% |
| 2016 | $16,443 | 80.7% | 10.9% | 8.4% |
| 2015 | $15,646 | 82.2% | 10.4% | 7.4% |
Source: Experian Q2 data from each year
North Dakota Has the Highest Percentage of Personal Loans in the U.S.
North Dakota was home to the highest percentage of consumers with a personal loan at 41.1% based on Experian data from Q2 2019. The states with the next-highest percentage of consumers who have personal loans were Mississippi, Wyoming, New Mexico and South Dakota. The District of Columbia was home to the lowest percentage of consumers with personal loans at 15.1%, followed by New Jersey, Connecticut, Rhode Island and Massachusetts.
| Percentage of Consumers With a Personal Loan by State | ||
|---|---|---|
| Rank | State | % |
| 1 | North Dakota | 41.10% |
| 2 | Mississippi | 38.70% |
| 3 | Wyoming | 38.00% |
| 4 | New Mexico | 37.60% |
| 5 | South Dakota | 36.90% |
| 6 | Louisiana | 36.60% |
| 7 | Oklahoma | 36.40% |
| 8 | Alabama | 36.10% |
| 9 | Texas | 36.10% |
| 10 | South Carolina | 34.80% |
| 11 | Tennessee | 34.80% |
| 12 | Kentucky | 34.40% |
| 13 | Montana | 33.40% |
| 14 | Hawaii | 32.90% |
| 15 | Idaho | 32.10% |
| 16 | West Virginia | 31.40% |
| 17 | Arkansas | 31.00% |
| 18 | Alaska | 30.80% |
| 19 | Nebraska | 30.20% |
| 20 | Georgia | 30.00% |
| 21 | Utah | 29.70% |
| 22 | Vermont | 29.60% |
| 23 | Maine | 29.50% |
| 24 | Missouri | 29.50% |
| 25 | Iowa | 29.40% |
| 26 | Indiana | 28.90% |
| 27 | Wisconsin | 27.80% |
| 28 | Minnesota | 26.80% |
| 29 | Kansas | 26.20% |
| 30 | North Carolina | 26.10% |
| 31 | Michigan | 26.00% |
| 32 | Delaware | 25.70% |
| 33 | Arizona | 25.10% |
| 34 | Virginia | 25.10% |
| 35 | Pennsylvania | 24.60% |
| 36 | Colorado | 24.50% |
| 37 | New Hampshire | 24.50% |
| 38 | Washington | 23.80% |
| 39 | Oregon | 23.70% |
| 40 | Illinois | 23.40% |
| 41 | Nevada | 23.40% |
| 42 | California | 22.30% |
| 43 | Ohio | 22.10% |
| 44 | Maryland | 21.80% |
| 45 | Florida | 20.00% |
| 46 | New York | 18.00% |
| 47 | Massachusetts | 16.90% |
| 48 | Rhode Island | 16.70% |
| 49 | Connecticut | 16.40% |
| 50 | New Jersey | 15.20% |
| 51 | District of Columbia | 15.10% |
Source: Experian Q2 2019 data
Personal Loan Balances of $20,000 or Less Are Highest in District of Columbia
The District of Columbia was home to the highest percentage—81.2%—of personal loans with a balance of $20,000 or less. The average balance of loans under $20,000 across the U.S. came out to $5,300. Nevada had the highest average personal loan balance under $20,000 at $7,747. The states with the next-highest percentage of personal loans under $20,000 were Illinois, Georgia, Tennessee and Kentucky. Alaska held the lowest average balance of $5,035 among loans with a balance under $20,000.
| Percentage of Personal Loan Balances of $20K or Less by State | |||
|---|---|---|---|
| Rank | State | % | Balance Amount |
| 1 | District of Columbia | 84.50% | $5,771 |
| 2 | Illinois | 83.80% | $5,764 |
| 3 | Georgia | 83.30% | $5,315 |
| 4 | Tennessee | 82.90% | $5,472 |
| 5 | Kentucky | 82.60% | $5,877 |
| 6 | Texas | 82.00% | $5,035 |
| 7 | New York | 81.80% | $6,386 |
| 8 | Pennsylvania | 81.80% | $6,591 |
| 9 | Massachusetts | 81.50% | $6,452 |
| 10 | Alabama | 81.20% | $5,300 |
| 11 | Indiana | 81.20% | $6,289 |
| 12 | Mississippi | 81.20% | $5,385 |
| 13 | Hawaii | 81.10% | $7,699 |
| 14 | Rhode Island | 81.10% | $6,349 |
| 15 | California | 81.00% | $5,464 |
| 16 | New Jersey | 81.00% | $6,520 |
| 17 | South Carolina | 80.90% | $5,183 |
| 18 | Ohio | 80.70% | $6,532 |
| 19 | Connecticut | 80.40% | $6,647 |
| 20 | Missouri | 80.40% | $5,870 |
| 21 | Delaware | 80.10% | $6,057 |
| 22 | Maryland | 80.10% | $6,390 |
| 23 | Virginia | 80.00% | $6,468 |
| 24 | Maine | 79.70% | $6,393 |
| 25 | Wisconsin | 79.30% | $6,430 |
| 26 | Louisiana | 79.20% | $5,486 |
| 27 | Nebraska | 79.00% | $6,665 |
| 28 | Michigan | 78.80% | $6,362 |
| 29 | North Carolina | 78.70% | $6,100 |
| 30 | Kansas | 78.60% | $6,318 |
| 31 | Oklahoma | 78.50% | $5,666 |
| 32 | New Mexico | 78.00% | $5,502 |
| 33 | Iowa | 77.60% | $6,581 |
| 34 | Florida | 77.20% | $6,171 |
| 35 | Nevada | 77.00% | $5,994 |
| 36 | New Hampshire | 75.90% | $7,206 |
| 37 | Vermont | 75.70% | $6,783 |
| 38 | Arizona | 75.60% | $6,082 |
| 39 | Utah | 75.60% | $6,332 |
| 40 | Colorado | 75.50% | $6,665 |
| 41 | Minnesota | 75.50% | $7,198 |
| 42 | West Virginia | 75.50% | $7,357 |
| 43 | Arkansas | 73.40% | $6,164 |
| 44 | Alaska | 72.30% | $6,818 |
| 45 | Idaho | 70.30% | $7,028 |
| 46 | Wyoming | 69.40% | $7,355 |
| 47 | Montana | 68.90% | $7,245 |
| 48 | Oregon | 68.10% | $7,015 |
| 49 | South Dakota | 68.10% | $6,978 |
| 50 | Washington | 66.80% | $7,084 |
| 51 | North Dakota | 66.40% | $7,747 |
Source: Experian Q2 2019 data
Personal Loan Balances of $20,000 to $40,000 Are Highest in North Dakota
Among all the states, North Dakota was home to the highest percentage, 18.7%, of personal loans with a balance of $20,000 to $40,000. The average balance in this range came out to $27,921, while South Carolina held the highest average personal loan balance between $20,000 to $40,000 at $28,296. The states with the next-highest percentage of personal loans were Montana, Wyoming, Idaho and Washington. Hawaii held the lowest average balance of $27,239 among loans with a balance between $20,000 to $40,000.
| Percentage of Personal Loan Balances of $20K to $40K by State | |||
|---|---|---|---|
| Rank | State | % | Balance Amount |
| 1 | North Dakota | 18.70% | $27,921 |
| 2 | Montana | 17.10% | $27,930 |
| 3 | Wyoming | 17.00% | $28,239 |
| 4 | Idaho | 16.60% | $27,839 |
| 5 | Washington | 16.60% | $28,124 |
| 6 | Oregon | 15.90% | $28,059 |
| 7 | Alaska | 15.70% | $28,174 |
| 8 | Minnesota | 15.70% | $27,636 |
| 9 | South Dakota | 15.70% | $28,041 |
| 10 | Hawaii | 15.10% | $27,239 |
| 11 | New Hampshire | 14.90% | $27,753 |
| 12 | West Virginia | 14.90% | $27,669 |
| 13 | Arkansas | 14.60% | $28,205 |
| 14 | Vermont | 14.40% | $27,830 |
| 15 | Utah | 14.10% | $27,717 |
| 16 | Colorado | 14.00% | $27,891 |
| 17 | Iowa | 13.50% | $27,770 |
| 18 | Connecticut | 13.20% | $27,579 |
| 19 | Michigan | 13.20% | $27,744 |
| 20 | Nebraska | 13.10% | $27,623 |
| 21 | Wisconsin | 12.90% | $27,646 |
| 22 | Maryland | 12.70% | $27,814 |
| 23 | New Jersey | 12.60% | $27,620 |
| 24 | Nevada | 12.50% | $27,881 |
| 25 | Kansas | 12.40% | $27,768 |
| 26 | Maine | 12.40% | $27,685 |
| 27 | Rhode Island | 12.40% | $27,478 |
| 28 | Arizona | 12.20% | $27,894 |
| 29 | Florida | 12.20% | $27,969 |
| 30 | Massachusetts | 12.20% | $27,407 |
| 31 | New York | 12.20% | $27,667 |
| 32 | Virginia | 12.20% | $27,594 |
| 33 | Ohio | 12.00% | $27,517 |
| 34 | Oklahoma | 12.00% | $27,939 |
| 35 | Missouri | 11.80% | $27,642 |
| 36 | Delaware | 11.60% | $27,908 |
| 37 | Indiana | 11.60% | $27,392 |
| 38 | New Mexico | 11.60% | $27,992 |
| 39 | North Carolina | 11.20% | $27,991 |
| 40 | Pennsylvania | 11.10% | $27,490 |
| 41 | Alabama | 10.80% | $27,990 |
| 42 | California | 10.80% | $27,791 |
| 43 | Illinois | 10.80% | $27,572 |
| 44 | Louisiana | 10.80% | $28,196 |
| 45 | District of Columbia | 10.70% | $27,684 |
| 46 | Kentucky | 10.50% | $27,618 |
| 47 | South Carolina | 10.30% | $28,296 |
| 48 | Mississippi | 10.20% | $28,293 |
| 49 | Texas | 10.10% | $28,027 |
| 50 | Georgia | 9.90% | $27,770 |
| 51 | Tennessee | 9.60% | $27,694 |
Source: Experian Q2 2019 data
Personal Loan Balances of $40,000 or More Are Highest in Washington
Analyzing personal loans with a balance of $40,000 or more, Washington state had the highest percentage of 16.6%. The average balance came out to $106,920, while Colorado held the highest average personal loan balance of $116,401 for balances of $40,000 or more. The states with the next highest percentage of personal loans were South Dakota, Oregon, North Dakota and Montana. Hawaii was home to the lowest percentage of personal loans with a balance of $40,000 or more at 3.7%, and held the lowest average balance too, of $64,948.
| Percentage of Personal Loan Balances of $40K or More by State | |||
|---|---|---|---|
| Rank | State | % | Balance Amount |
| 1 | Washington | 16.60% | $106,920 |
| 2 | South Dakota | 16.10% | $105,225 |
| 3 | Oregon | 16.00% | $105,661 |
| 4 | North Dakota | 14.90% | $107,463 |
| 5 | Montana | 14.00% | $102,738 |
| 6 | Wyoming | 13.50% | $96,786 |
| 7 | Idaho | 13.10% | $90,233 |
| 8 | Arizona | 12.10% | $90,759 |
| 9 | Alaska | 12.00% | $80,676 |
| 10 | Arkansas | 12.00% | $100,230 |
| 11 | Florida | 10.60% | $92,971 |
| 12 | Colorado | 10.50% | $116,401 |
| 13 | Nevada | 10.50% | $92,331 |
| 14 | New Mexico | 10.40% | $89,869 |
| 15 | Utah | 10.20% | $90,079 |
| 16 | Louisiana | 10.00% | $93,996 |
| 17 | North Carolina | 10.00% | $84,242 |
| 18 | Vermont | 10.00% | $100,598 |
| 19 | Oklahoma | 9.60% | $90,038 |
| 20 | West Virginia | 9.60% | $80,584 |
| 21 | New Hampshire | 9.20% | $92,614 |
| 22 | Iowa | 8.90% | $100,317 |
| 23 | Kansas | 8.90% | $110,975 |
| 24 | Minnesota | 8.80% | $91,932 |
| 25 | South Carolina | 8.80% | $85,134 |
| 26 | Mississippi | 8.60% | $90,556 |
| 27 | Delaware | 8.30% | $91,603 |
| 28 | California | 8.20% | $103,394 |
| 29 | Alabama | 8.00% | $80,586 |
| 30 | Michigan | 8.00% | $84,663 |
| 31 | Maine | 7.90% | $82,835 |
| 32 | Nebraska | 7.90% | $97,308 |
| 33 | Texas | 7.90% | $96,138 |
| 34 | Virginia | 7.90% | $89,418 |
| 35 | Missouri | 7.80% | $91,964 |
| 36 | Wisconsin | 7.80% | $112,360 |
| 37 | Tennessee | 7.50% | $109,874 |
| 38 | Indiana | 7.30% | $89,172 |
| 39 | Ohio | 7.30% | $93,173 |
| 40 | Maryland | 7.20% | $93,914 |
| 41 | Pennsylvania | 7.00% | $92,636 |
| 42 | Kentucky | 6.90% | $88,236 |
| 43 | Georgia | 6.80% | $93,630 |
| 44 | Rhode Island | 6.40% | $91,922 |
| 45 | Connecticut | 6.30% | $97,275 |
| 46 | Massachusetts | 6.30% | $98,806 |
| 47 | New Jersey | 6.30% | $104,137 |
| 48 | New York | 6.00% | $107,418 |
| 49 | Illinois | 5.40% | $106,092 |
| 50 | District of Columbia | 4.70% | $107,111 |
| 51 | Hawaii | 3.70% | $64,948 |
Source: Experian Q2 2019 data
Methodology: The analysis results provided are based on an Experian-created statistically relevant aggregate sampling of our consumer credit database that may include use of the FICO® Score 8 version. Different sampling parameters may generate different findings compared with other similar analysis. Analyzed credit data did not contain personal identification information. Metro areas group counties and cities into specific geographic areas for population censuses and compilations of related statistical data.
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