US unsecured loan balances reach record high as subprime demand surges
Total unsecured debt reached a record high last year as subprime borrowers sought relief from rising costs. Experts expect slower credit growth through 2026.
Insights:
Unsecured loan balances in the US 
US reached a record $276 billion at end-December, representing a 10% year-on-year increase according to a report from TransUnion . This surge in the U.S. unsecured loan market was driven by robust demand from subprime consumers and individuals consolidating credit card debt as interest rates began to fall. The expansion involves 26.4 million consumers, marking a significant milestone in consumer credit participation.
US reached a record $276 billion at end-December, representing a 10% year-on-year increase according to a report from TransUnion . This surge in the U.S. unsecured loan market was driven by robust demand from subprime consumers and individuals consolidating credit card debt as interest rates began to fall. The expansion involves 26.4 million consumers, marking a significant milestone in consumer credit participation.
