Current Delinquency Rates
The personal loan statistics reveal that the delinquency rate for personal loans, defined as loans that are 60 days or more past due, reached 3.52% in Q3 2025. This statistic is significant as it highlights the repayment behavior of borrowers in the current economic climate. Notably, this rate is higher than that of mortgages (1.36%) and auto
Furthermore, the average personal loan balance per borrower has increased to $11,724, up from $11,652 a year prior. This rise in average debt reflects a growing reliance on personal loans, often used for debt consolidation and refinancing high-interest credit card debt, with 51% of borrowers utilizing loans for these purposes [LendingTree].
Year-over-Year Comparison
The slight increase in the delinquency rate from 3.50% in Q3 2024 to 3.52% in Q3 2025 indicates a trend of rising financial stress among borrowers. This increase, although minimal at 0.6%, is part of a broader pattern observed across various credit tiers, including superprime borrowers, who have experienced a staggering 300% spike in 90-119 day delinquencies in August 2025 [VantageScore].
In Canada, the situation is similarly concerning, with personal loan delinquencies rising due to an increase in high-risk subprime lending. In Q3 2025, 1.45 million Canadian consumers missed a credit payment, marking a significant rise from previous quarters [Equifax Canada].
Implications for Borrowers
The rising delinquency rates have several implications for borrowers. First and foremost, it suggests that financial stress is spreading beyond the subprime segment, affecting even those with higher credit scores. Younger consumers, particularly those aged 18-35, are facing the greatest challenges, with delinquency rates increasing by 16-20% year-over-year [Canadian Lenders Association].
As borrowers navigate these challenges, it is crucial to consider the following strategies to mitigate financial stress:
- Budgeting: Create a detailed budget to track income and expenses, ensuring that loan payments are prioritized.
- Debt Consolidation: Consider consolidating high-interest debts into a single personal loan with a lower interest rate.
- Emergency Fund: Build an emergency fund to cover unexpected expenses, reducing the need for additional borrowing.
- Seek Financial Advice: Consult with a financial advisor to explore options tailored to your financial situation.
In conclusion, the personal loan market is experiencing notable shifts, with delinquency rates reflecting broader consumer credit stress. As borrowers face these challenges, understanding the implications and adopting proactive financial strategies can help navigate the complexities of personal loans in 2026.
Key Takeaways
- The delinquency rate for personal loans reached 3.52% in Q3 2025.
- The average personal loan balance per borrower is $11,724.
- Delinquency rates are rising across various credit tiers, affecting even superprime borrowers.
- Younger consumers are facing increased financial stress, with delinquency rates rising significantly.
- Proactive financial strategies can help borrowers manage their loans effectively.
FAQ
What are personal loan statistics?
Personal loan statistics provide insights into the trends and behaviors of borrowers, including delinquency rates, average loan balances, and usage patterns.
Why are delinquency rates important?
Delinquency rates indicate the financial health of borrowers and can reflect broader economic trends affecting credit availability and lending practices.
How can I improve my chances of getting a personal loan?
Improving your credit score, reducing existing debt, and demonstrating stable income can enhance your chances of securing a personal loan.
Sources
- Automated Pipeline
- Why Lenders Are Rethinking Risk in 2025
- Household Debt Balances Grow Steadily; Mortgage Originations - New York Fed
- VantageScore CreditGauge™ August 2025: Consumer Credit Quality Deteriorates
- Equifax Canada Market Pulse Quarterly Consumer Credit Trends Q3 2025
- Bank of Canada Financial Stability Report 2025
- Source: lendingtree.com
- Source: cmhc-schl.gc.ca
- Source: fred.stlouisfed.org
