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Many Americans are borrowing and incurring debt to keep up with rising costs for basic necessities, such as groceries, rent and utilities, as well as to make larger purchases. Credit card balances reached a record $1.28 trillion at the end of 2025, according to the New York Fed.
As consumers look to manage that debt, personal loans will be the primary driver of new borrowing this year, according to a forecast released Thursday from TransUnion, one of the three major credit reporting agencies.
“Personal loans have truly become the middle-class refinancing option for high-interest credit card debt. That’s why they’re growing exponentially,” said Jim Triggs, CEO of Money Management International, a nonprofit credit counseling organization.
Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.
