August 25, 2016 in Personal Loans

The 10 states with the most personal loan debt

personal loans

More Americans are turning to personal loans to consolidate debt, renovate their homes or even to buy a car. In fact, 2.99 million new unsecured personal loans were opened in the 1st quarter of 2016, an increase of 13.6% over the same quarter a year prior, according to TransUnion, one of the 3 major credit bureaus.

Not only are there more loans, the average debt on those loans is growing, too. The average debt per borrower was $7,745 during the 2nd quarter of this year. That’s a 9.1% increase over 2015.

Using TransUnion and Bankrate data, we estimated what a typical monthly payment might look like on the average loan balance in all 50 states. In each case, we used the average personal loan rate – 10.7%, according to Bankrate’s national survey — on a hypothetical 36-month loan to arrive at the monthly payment and total interest paid.

Here are the states with the highest average personal loan debt per borrower.

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Average personal loan debt: $11,327

Average personal loan debt: $10,808

Average personal loan debt: $10,330

Average personal loan debt: $10,074

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Average personal loan debt: $9,996

Average personal loan debt: $9,496

Average personal loan debt: $9,259

Average personal loan debt: $9,255

Average personal loan debt: $8,936

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Average personal loan debt: $8,880