What was America’s fastest-growing type of consumer debt in 2018? You may think credit card debt, given that revolving debt has topped the trillion-dollar mark – but according to new data from the credit reporting agency Experian, personal loans had the greatest percentage growth last year.
In 2018, outstanding personal loan debt grew by 11.9% to reach $291 billion. The growth rate of personal loans was double the growth rate of both credit card debt and student loan debt (5.9% and 5.8%, respectively). Personal loan growth rates nearly tripled the 4.3% increase in auto loans/leases and far outstripped the 2.8% increase in mortgages.
Personal loans are growing at a faster rate partly because they have more room to grow. According to data from LendingTree, personal loans only make up 1.5% of outstanding consumer debt and only 5% when mortgages are excluded. Student loan debt, credit card debt, and auto loan debt all have far greater outstanding balances.