Average Personal Loan Debt Amount in America 2021

ElitePersonalFinance
Last Update: July 8, 2021 Credit Cards Debt Loans Studies
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How much is the average personal loan amount in America in 2021? How the Covid affected American loans at all? Our credit card study found that the American credit card debt rise is finally over.

Now, let’s see what happens with the average personal loan size that Americans pay to banks, credit unions, and online lenders.

Average Personal Loan Amount in America 2021: Statistics and Key Findings

The average personal loan amount in America is $16,458. In 2019 it was $16,259, which makes growth $199, or 1.2%.

In 2020 the total personal loan debt sat at $323B. In 2019 it was $305B. This makes a raise of $18B, or 6%.

In 2020 the total number of newly-opened accounts was 42.7M. In 2019 it was 39.6M. This makes a growth by 3.1M or 8%.

By State:

The top States with The Highest National Average:

  • Washington: $28,366
  • Oregon: $27,165
  • South Dakota: $25,174
  • Montana: $24,901
  • North Dakota: $24,808

The top States with The Lowest National Average:

  • District of Columbia: $10,400
  • Hawaii: $12,562
  • Georgia: $13,131
  • Illinois: $13,636
  • New Jersey: $13,879

States With Largest Drop in Personal Loan Debt:

  • District of Columbia: -19.6%
  • New Jersey: -9.6%
  • Vermont: -8.6%
  • Connecticut: -7.4%
  • North Dakota: -5.8%

States With Largest Growth in Personal Loan Debt:

  • Kentucky: +11.1%
  • Nebraska: +10.6%
  • Nevada: +7.8%
  • Maine: +6.5%
  • Wyoming: +6.2%

By Credit Score:

  • Super Prime (781–850): $12,812
  • Prime Plus (721–780): $12,443
  • Prime (661–720): $9,802
  • Near Prime (601–660): $6,816
  • Subprime (300–600): $4,074

By Generation:

  • Generation Z (18-23): $6,004
  • Millennials (24-39): $12,306
  • Generation X (40-55): $17,733
  • Baby Boomers (56-74): $19,700
  • Silent Generation (75+): $17,123

Personal Loan Delinquencies:

  • Average % of accounts 30-59 DPD: 1.11%
  • Average % of accounts 60-89 DPD: 0.65%
  • Average % of accounts 90-180 DPD: 0.89%

Average Personal Loan Amount in America 2021: Charts, Graph, Analysis

Segment: 2019: 2020: Change:
Avg. Personal Loan Debt: $16,259 $16,458 +$199 (+1.2%)
Total Outstanding Debt: $305B $323B +$18B (6%)
Total Number of Accounts: 39.6M 42.7M +3.1M (8%)

Average Personal Loan Amount in America 2021

The average personal loan amount in 2021 continues growing. In 2020 the average personal loan balance sits at $16,458, while in 2019, it was $16,259. This makes growth $199, or 1.2%. We also have to mention that in 2018 and 2019, the average personal loan debt per person shrank by 1% and 0.5%, respectively.

Although the COVID and all of the financial help government programs, Americans continue to get loans. But about the overall COVID effect over loans, we will talk below.

We can make this conclusion not only based on the average loan debt. The total loan amount and the number of accounts double prove that.

Total Personal Loan Debt in the U.S. in 2021

Personal loans are a fast-growing industry. The competition in the loan market seriously affected this business in several ways:

  • Many new companies started to lower loan rates.
  • Many new online lenders have become more competitive.

But let’s see how this affected the outstanding loan amount.

But first thing first.

Let’s start our analysis back in 2009.

In 2009, in the Great Recession, personal loan debt began to shrink and continued until 2014. In this period, the overall personal loan debt fell from $259B in 2008 to $171B in 2013. From 2014, the trend significantly changes, and in 2020, we have the highest value.

What happens now?

In 2020 the total personal loan debt sat at $323B. In 2019 it was $305B. This makes a raise of $18B, or 6%. As you can see, the trend is positive. However, we have to mention that the 2018 – 2019 growth was 12%. So, the actual growth decreased 2 times.

In 2020 the total number of newly-opened accounts was 42.7M. In 2019 it was 39.6M. This makes a grow by 3.1M or 8%.

Average Personal Loan Debt by State

State: 2019: 2020: Change:
Alabama $13,749 $13,892 +1%
Alaska $19,054 $19,188 +0.7%
Arizona $19,030 $20,001 +5.1%
Arkansas $20,662 $20,113 -2.7%
California $15,896 $16,790 +5.6%
Colorado $21,187 $21,783 +2.8%
Connecticut $15,153 $14,038 -7.4%
Delaware $15,723 $16,674 +6%
District of Columbia $12,932 $10,400 -19.6%
Florida $18,035 $17,869 -0.9%
Georgia $13,557 $13,131 -3.1%
Hawaii $12,802 $12,562 -1.9%
Idaho $21,407 $22,553 +5.4%
Illinois $13,499 $13,636 +1%
Indiana $14,754 $15,314 +3.8%
Iowa $17,779 $18,093 +1.8%
Kansas $18,335 $18,887 +3%
Kentucky $13,861 $15,402 +11.1%
Louisiana $16,766 $17,266 +3%
Maine $15,051 $16,025 +6.5%
Maryland $15,441 $14,678 -4.9%
Massachusetts $14,851 $14,756 -0.6%
Michigan $15,471 $15,391 -0.5%
Minnesota $17,845 $17,692 -0.9%
Mississippi $15,030 $14,625 -2.7%
Missouri $15,171 $15,921 +4.9%
Montana $24,108 $24,901 +3.3%
Nebraska $16,543 $18,301 +10.6%
Nevada $17,797 $19,189 +7.8%
New Hampshire $18,147 $17,798 -1.9%
New Jersey $15,350 $13,879 -9.6%
New Mexico $16,907 $17,892 +5.8%
New York $15,069 $14,383 -4.6%
North Carolina $16,402 $15,869 -3.2%
North Dakota $26,342 $24,808 -5.8%
Ohio $15,381 $15,293 -0.6%
Oklahoma $16,400 $17,066 +4.1%
Oregon $26,122 $27,165 +4%
Pennsylvania $14,958 $14,599 -2.4%
Rhode Island $14,488 $13,925 -3.9%
South Carolina $14,575 $15,272 +4.8%
South Dakota $26,137 $25,174 -3.7%
Tennessee $15,400 $15,505 +0.7%
Texas $14,565 $15,188 +4.3%
Utah $17,920 $18,657 +4.1%
Vermont $19,153 $17,503 -8.6%
Virginia $15,554 $14,822 -4.7%
Washington $27,188 $28,366 +4.3%
West Virginia $17,442 $17,091 -2%
Wisconsin $17,404 $16,953 -2.6%
Wyoming $23,018 $24,435 +6.2%

Top States with The Highest National Average:

  • Washington: $28,366
  • Oregon: $27,165
  • South Dakota: $25,174
  • Montana: $24,901
  • North Dakota: $24,808

Top States with The Lowest National Average:

  • District of Columbia: $10,400
  • Hawaii: $12,562
  • Georgia: $13,131
  • Illinois: $13,636
  • New Jersey: $13,879

States With Largest Drop in Personal Loan Debt:

  • District of Columbia: -19.6%
  • New Jersey: -9.6%
  • Vermont: -8.6%
  • Connecticut: -7.4%
  • North Dakota: -5.8%

States With Largest Growth in Personal Loan Debt:

  • Kentucky: +11.1%
  • Nebraska: +10.6%
  • Nevada: +7.8%
  • Maine: +6.5%
  • Wyoming: +6.2%

Overall, the average loan size saw a growth in 27 states. In the rest 23 states, it falls.

Average Unsecured Personal Loan Debt By Credit Score 2021

Risk Tier: Super Prime (781–850): Prime Plus (721–780): Prime (661–720): Near Prime (601–660): Subprime (300–600):
Avg. Balance: $13,034 $12,259 $9,750 $6,799 $4,084

This data comes from TransUnion. To make these categories by credit risk, TransUnion uses VantageScore 4.0. In it, “Super Prime” and “Prime Plus” are with the lowest credit risk (like excellent and good credit score). “Subprime” and “Near Prime” are with the highest credit risk (like bad and fair credit).

Percentage of Accounts in Hardship

Risk Tier: Super Prime (781–850): Prime Plus (721–780): Prime (661–720): Near Prime (601–660): Subprime (300–600):
Percentage: 4.009% 2.284% 2.377% 3.050% 3.149%

The percentage of the accounts that are hardship means accounts affected by natural/declared disaster, accounts reported as forbearance, accounts reported as deferred or payment due amount removal, or freezing of account status and/or past due amount.

Average Personal Loan Debt By Generation:

Segment: 2019: 2020: Change:
Generation Z (18-23) $4,526 $6,004 +33%
Millennials (24-39) $11,819 $12,306 +4%
Generation X (40-55) $17,175 $17,733 +3%
Baby Boomers (56-74) $19,253 $19,700 +2%
Silent Generation (75+) $17,112 $17,123 +0%

Sadly, in the COVID, the youngest generation, although with the lowest national average, increased the most, with 33%!

But is the COVID the only reason for this high growth?

Not only!

Personal loans become more attractive and easy-approved. Young people with no credit history and those with bad credit have easier access to fast cash also make this number. However, those with bad credit or no credit history always pay higher interest. Sadly, most of these people, not counting the risk of getting a loan early, end into debt cycle or other financial problems.

ElitePersonalFinance hopes to see a low number next year!

Personal Loan Delinquencies

Segment: 2019: 2020: Change:
Average % of accounts 30-59 DPD 1.46% 1.11% -24%
Average % of accounts 60-89 DPD 0.78% 0.65% -17%
Average % of accounts 90-180 DPD 1.37% 0.89% -35%

COVID has affected the delinquencies. The government’s financial help and the fact that people started to pay more attention to their savings also pay their loans and credit cards on time. The drop of delinquencies is high – from 17% to 35%. The same effect we found on our credit card debt study. There we found numbers between 24% to 33%.

Sources

Growth of Personal Loan Debt by Experian

Monthly Industry Snapshot by TransUnion

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ElitePersonalFinance

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