Delaware residents are part of a nationwide trend that saw Americans take out personal loans at unprecedented levels in 2024, according to a new financial industry report.
TransUnion’s Credit Industry Insights Report reveals that outstanding balances for unsecured personal loans jumped 10% last year, reaching an all-time record of $276 billion. The number of Americans carrying these loans also climbed from 24.5 million to 26.4 million by December’s end.
The dramatic increase stems largely from borrowers with lower credit scores seeking financial alternatives as living expenses continue outpacing income growth.
“As interest rates began to fall, many consumers are consolidating their credit card balances into unsecured loans,” explained Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.
Raneri noted that consumers with limited income are increasingly turning to these financial products as temporary solutions while struggling with elevated costs of living that haven’t been offset by comparable salary increases.
Meanwhile, credit card companies expanded their lending to lower-income customers, pushing total credit card debt up 4% to $1.15 trillion. However, these same lenders implemented stricter initial credit limits to manage potential losses, while delinquency rates have gradually climbed in recent months.
Looking ahead, TransUnion anticipates the lending market will experience more modest expansion this year as conditions return to typical patterns following years of pandemic-related volatility.
“The credit markets are now going back to more ‘normal’ growth levels, after strong fluctuations since the pandemic,” Raneri stated.
The credit reporting agency recently updated its 2026 projections, now predicting an 11.2% increase in new unsecured loan originations, up from their earlier forecast of 5.7%. They also expect mortgage activity to rise 4% while home refinancing applications climb 4.2%.
“People that have recent mortgages taken with higher interest rates are starting to have access to refinancing and we expect that demand to grow,” the TransUnion executive added.
Auto lending presents a different picture, with TransUnion forecasting a 1.5% decline this year after approximately 5% growth in 2024, when buyers rushed to make purchases ahead of potential import tariff impacts.
