Personal loans are up more than 10 percent from a year ago, according to data from Equifax, a rapid pace of growth that has not been seen on a sustained basis since shortly before the Great Recession, the Washington Post reported. All three of the major consumer credit agencies — Equifax, Experian and TransUnion — report double-digit growth in this market in recent months. Experts are surprised to see millions of Americans taking on so much personal loan debt at a time when the economy looks healthy and paychecks are growing for many workers, raising questions about why so many people are seeking an extra infusion of cash. Personal loans are unsecured debt, meaning there is no underlying asset like a home or car that backs the loan if someone cannot repay. The average personal loan balance is $16,259, according to Experian, a level that is similar to credit card debt. Personal loan balances over $30,000 have jumped 15 percent in the past five years, Experian found. The trend comes as U.S. consumer debt has reached record levels, according to the Federal Reserve Bank of New York.
