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.