CHARLOTTE, N.C. — Americans have hundreds of billions of dollars in personal loan debt, data shows, and North Carolina is one of more than a dozen states that saw an increase in personal loan debt in 2023.
A new study from WalletHub found that 18 states, including North Carolina, saw an increase in personal loan debt last year. WCNC Charlotte is helping viewers get ahead of their debt in 2024, and for many people, low-interest personal loans were one way to combat inflation. Now, many people are looking for tips to chip away at that debt so they aren't left asking, "where's the money?"
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The study found the average personal loan debt is North Carolina last year was $11,023. That's up 2.78% from 2022. Now, compare that to South Carolina, where personal loan debt went down 1.66%, with the average person owing a little over $8,000.
Chris Hobart, a financial advisor with Hobart Wealth, said despite the increase in North Carolina, there's no need to be alarmed.
"It's not like it was through the roof, it was an increase a little bit more than last year," Hobart said. "Not really alarming, because our actual number is below the national trend."
But why is North Carolina seeing higher debts? Hobart said inflation could be to blame.
"It means it costs a lot more to live these days than what people are actually bringing in," Hobart said.
He also said people aren't adjusting their spending habits with rising interest rates. As a result, some people have been caught off-guard and took on more debt than they're used to.
"With interest rates as low as they have been the past 10-15 years, it became very easy for people to borrow money without having a lot of restrictions," Hobart said.
If you have some personal loans you need to pay off? Hobart said you need some tough love.
"We've got to be more disciplined," Hobart said. "And we've got to change our spending habits first and foremost."
Hobart said if you’re already in a situation where you’re trying to manage your debt, there are resources available.
"Other things to consider in a case like this would be debt consolidation," Hobart said. "How can you pull in more of your debt at lower interest rates and try and fix that interest rate to a lower rate specifically, while interest rates are so high?"
WCNC Charlotte's Where's The Money series is all about leveling the playing field in the Carolinas by helping others and breaking down barriers. WCNC Charlotte doesn't want our viewers to be taken advantage of, so we’re here to help. Watch previous stories where we ask the question “Where’s the Money” in the YouTube playlist below and subscribe to get updated when new videos are uploaded.