Personal Loan Statistics: 2024
According to the latest industry data, 23.9 million Americans owe a collective $246 billion in personal loans. That amounts to a fraction of what’s owed for mortgages, auto loans and credit cards but is proof of the growing popularity of personal loans.
The numbers behind the trends can reveal how borrowers use personal loans — and how they impact consumers’ finances. Check out our personal loan statistics for a deeper look.
Key facts
- Americans owe $246 billion in personal loan debt as of the second quarter of 2024, up $1 billion from the previous quarter and $14 billion from a year earlier ($232 billion). That’s a 6.0% jump from the previous year.
- 23.9 million Americans have a personal loan as of the second quarter of 2024, up from 22.7 million a year earlier. That’s a 5.3% year-over-year increase.
- Personal loan debt makes up 1.4% of outstanding consumer debt as of the second quarter of 2024. It accounts for 5.0% of nonhousing consumer debt. To compare, Americans owe $1.142 trillion in credit card debt, comprising 6.4% of outstanding debt.
- The delinquency rate (60 days or more past due) for personal loans is 3.38% as of the second quarter of 2024. That’s a significant decrease from 3.62% a year before.
- The average personal loan debt per borrower is $11,687 as of the second quarter of 2024. A year before that, the average debt per borrower was $11,548.
- Most borrowers (51.3%) take out a personal loan to consolidate debt or refinance credit cards. The next-closest reason is for everyday bills (8.1%).
Americans owe $246 billion in personal loan debt
Personal loan borrowers owe $246 billion in debt as of the second quarter of 2024 — up $1 billion from the previous quarter, marking the highest in the 18-plus years for which data is available. That’s a substantial 6.0% increase from the second quarter of 2023, when Americans owed $232 billion.
Here’s an overview of the amounts Americans have owed on personal loans over time:
23.9 million Americans have a personal loan
As of the second quarter of 2024, 23.9 million Americans have a personal loan, up from 22.7 million in the second quarter of 2023.
The number of people with loans dropped during the pandemic from the previous height of 20.8 million at the end of 2019 to 18.7 million in the second quarter of 2021. After that was the start of six increases in a row before the number dipped from 22.5 million in the fourth quarter of 2022 to 22.4 million in the first quarter of 2023. The number has since increased, reaching 23.9 million in the second quarter of 2024.
Here’s a look at the number of consumers with personal loans dating to 2015:
Personal loan growth returns after dropping early in pandemic
The massive, nearly-decade-long rise in personal loan debt ended in 2020, thanks to the pandemic. Personal loan balances fell 7.6% in 2020, marking the first decline since 2011.
But personal loan debt balances spiked 15.2% in 2021, reversing the previous year’s downward movement. Balances in the second quarter of 2024 are up 0.4% compared to the end of 2023.
Here’s a closer look at the ups and downs since 2007:
Personal loans account for 1.4% of consumer debt
Personal loans continue to make up the smallest sliver — 1.4% — of consumer debt held by Americans despite the substantial growth over the past decade.
Comparatively, Americans owe $1.142 trillion in credit card debt, comprising 6.4% of outstanding debt.
If you remove mortgages from the picture, personal loans account for 5.0% of nonhousing debt.
3.38% of personal loan accounts are 60 days or more past due
An estimated 3.38% of personal loan accounts are 60 days or more past due as of the second quarter of 2024 — a significant decrease from 3.62% as of the second quarter of 2023. This is the lowest since 3.37% in the second quarter of 2022.
Still, that figure is significantly higher than delinquency rates for other common loan types, such as mortgages (1.12%), auto loans (1.40%) and credit cards (2.26%). (Note that credit card delinquencies are tracked at 90 or more days.)
Despite personal loan delinquency rates being high compared to other loan types, it’s interesting to compare today’s figures to the 30-day delinquency rate of 4.77% on consumer loans in 2009 when the Great Recession ended.
Average personal loan debt per borrower is nearly $11,700 — and the APRs owed
The average personal loan debt per borrower is $11,687 as of the second quarter of 2024. That compares with:
- $11,548 in the second quarter of 2023
- $10,344 in the second quarter of 2022
- $9,079 in the second quarter of 2021
On average, borrowers with credit scores of 680 or higher see personal loan APRs competitive with the credit card APRs they would receive.
The average APR on new credit card offers is 24.92% as of September 2024, with average minimums and maximums between 21.48% and 28.36%. As the chart below shows, those with excellent credit who apply for a personal loan are likely to get a better rate than that.
Personal loan statistics by borrower credit score
| Credit score range | Average APR | Average loan amount |
|---|---|---|
| 720+ | 18.68% | $17,691 |
| 680-719 | 31.21% | $14,335 |
| 660-679 | 44.70% | $10,279 |
| 640-659 | 56.94% | $7,998 |
| 620-639 | 77.41% | $6,094 |
| 580-619 | 118.66% | $4,338 |
| 560-579 | 165.39% | $3,012 |
| Less than 560 | 184.89% | $2,463 |
Source: LendingTree user data on closed personal loans for the second quarter of 2024.
However, subprime borrowers — who may not be eligible for other credit — generally have to pay far higher rates on their personal loans (if they even have loan offers extended to them).
Consumers mostly borrow personal loans to pay down debt
More than half (51.3%) of LendingTree users seek personal loans to pay down debt, including 39.9% for debt consolidation and 11.4% for refinancing credit card debt.
The next most popular uses for a personal loan are paying for everyday bills (8.1%) and home improvements (7.2%).
These personal loan statistics underline how important it is for borrowers to practice caution and wisdom when using this product.
Borrowers who use this product can come out ahead — but only if they weigh the decision, find a favorable personal loan and practice responsible debt management.
Expect personal loan debt to keep growing
Personal loan debt is growing, and that’s unlikely to change anytime soon. That’s because credit card debt is rising, too, and will likely continue to do so for the foreseeable future.
When that happens, people look to personal loans to help them control their credit card debt, and they can be great tools for that. If you have really good credit, a 0% balance transfer credit card might be a better choice for consolidating and refinancing other debts. Still, a personal loan can also be a strong option.
Remember, it’s important to understand that people don’t only take out personal loans when they’re struggling. Many use them when remodeling their home, starting a business, planning a wedding or vacation and making other big purchases. They do it because they feel comfortable enough about their financial situation to take on short-term debt. Despite many economic headwinds, there’s no question that millions of Americans feel that way today, and those folks will also help drive consumer demand for personal loans higher.
Add all this up, and personal loan growth will likely continue. Many folks will struggle with managing those loans. However, those who handle these loans well — especially those who use them to knock down their debt — can make a real difference in their financial situation, and that’s a big deal.
Sources
- TransUnion
- The Wall Street Journal
- Federal Reserve Bank of New York
- LendingTree