Indiana · East North Central
Debt consolidation in Indiana
Indiana has some of the lowest card debt in the country: $3,410 per adult, 44th of 51. Smaller balances change which consolidation option makes sense.
- $3,410
- card debt per adult, 44th of 51
- 11.72%
- of card balances 90+ days late (US 12.36%)
- +26.3%
- card debt growth since 2019 (US +28.3%)
Indiana balances next to the US
Card balances per adult are up 26.3% since 2019, slower than the national +28.3% (27th fastest of 51). Balances fell from $2,700 in 2019 to $2,410 in 2020, when spending dropped and stimulus paid down cards, then climbed back to $3,410 by 2025.
Lower card debt does not mean lower rates. A $3,410 balance at a typical card APR still costs hundreds a year in interest, and a smaller balance is often cheaper to clear with a 0% balance transfer than with a loan that carries an origination fee. In Indiana, cards, auto loans and student loans add up to $13,460 per adult, 13% below the national $15,470.
| Type | IN | US | IN change vs 2024 |
|---|---|---|---|
| Credit cards | $3,410 | $4,350 | +3.0% |
| Auto loans | $5,220 | $5,660 | -1.3% |
| Student loans | $4,830 | $5,460 | -3.8% |
| Mortgages | $32,520 | $44,300 | +4.4% |
| All household debt | $49,330 | $63,200 | +2.7% |
Personal loan rules in Indiana
Indiana uses a sliding scale for licensed consumer loans: 36% on the first $2,600, 21% on the next $2,600 and 15% above that (or 25% on the whole balance), plus a one-time fee of $75 to $200. Because of that fee, short small loans can carry a much higher APR.
- Supervised (licensed) consumer loans: The greater of (a) 36% per year on the first $2,600, 21% on the next $2,600 and 15% on the rest, or (b) 25% per year on the unpaid balance; dollar brackets adjusted for inflation (base $2,000/$4,000, set at $2,600/$5,200 from Jan. 1, 2025) (Ind. Code § 24-4.5-3-508(2); 750 Ind. Admin. Code 1-1-1)
- Nonrefundable prepaid finance charge on supervised loans: Up to $75, $150 or $200 depending on loan size (Ind. Code § 24-4.5-3-508)
The National Consumer Law Center puts the highest APR allowed in Indiana at 89% on a $500, six-month loan and 40% on a $2,000, two-year loan (Predatory Installment Lending in the States: How Well Do the States Protect Consumers Against High-Cost Installment Loans? (2025), NCLC, December 2025).
Non-bank lenders need a state license to make these loans. License: Consumer Loan License (Ind. Code § 24-4.5-3-502).
Small payday-style loans are covered by a separate chapter (Ind. Code 24-4.5-7).
Compare rate caps in every state. Checked 2026-09-30. Summary for general information, not legal advice. Laws change, and banks chartered in other states may follow different rules. Sources: Ind. Code § 24-4.5-3-508; Ind. Code § 24-4.5-3-502; 750 Ind. Admin. Code 1-1-1, dollar amounts; NCLC, Predatory Installment Lending in the States (2025), maps 1 and 2 and Appendix C.
Your options in Indiana
- Balance transfer card: a 0% introductory APR can beat a loan if you can clear the balance before the promo ends. Balance transfer vs personal loan.
- Debt consolidation loan: one fixed payment and end date, worth it when the APR is clearly below your card rates. How to compare offers.
- Debt management plan: a nonprofit credit counseling agency negotiates lower rates with your card issuers. Useful if you cannot qualify for a loan. DMP vs consolidation.
What consolidating could save at IN numbers
Take the Indiana average of $3,410 and pay it off in 36 months. At a 24% card APR the payment is about $134 a month and the interest about $1,406. With a 12% consolidation loan the payment drops to about $113 and the interest to about $667, a difference of $739.
People who carry a balance usually owe more than the per-adult average. On $8,500 the same comparison is $3,505 of card interest against $1,664 on the loan. These rates are examples, not offers. Your APR depends on your credit, income and the lender, and an origination fee reduces the savings. See what lenders look for.
Indiana next to its neighbors
Among the 5 East North Central states, Indiana has the 4th highest card debt per adult.
How many Indiana borrowers are behind
11.72% of credit card balances in Indiana were seriously delinquent (90+ days) at the end of 2025. That is 0.6 points below the national rate of 12.36%, placing Indiana 20th of 51 for card delinquency (1st is the highest). The rate rose 1.0 points in the past year, from 10.74% in 2024. In 2019 the share was 7.04%.
Auto loan delinquency in Indiana stood at 6.26% (US 5.18%), and student loan delinquency at 8.37% (US 8.25%). If your payments are current, you are in a better position to qualify for a lower rate. If not, read our guide to consolidation loans with bad credit .
Checking a lender in Indiana
Non-bank consumer lenders in Indiana are licensed by the Indiana Department of Financial Institutions (DFI). Before you accept an offer, look up the lender's license. To report a problem, file with the Indiana Attorney General, Consumer Protection Division or the CFPB. Never pay upfront fees for debt relief.
Indiana debt consolidation FAQ
How much credit card debt does the average person in Indiana have?
$3,410 per adult with a credit file at the end of 2025, according to New York Fed Consumer Credit Panel/Equifax data. That is 22% below the US figure of $4,350 and ranks 44th of 51. The figure includes people with no card balance, so people who do carry a balance typically owe more.
Are more people in Indiana falling behind on credit cards?
11.72% of card balances in Indiana were 90 or more days past due in 2025, compared with 7.04% in 2019 (up 4.7 points). The national rate was 12.36%.
Can a consolidation loan lower what borrowers in Indiana pay in interest?
It can if the loan APR is well below your card APRs. On a $3,410 balance paid off over 36 months, a 24% card APR costs about $1,406 in interest and a 12% loan about $667. Rates depend on your credit and the lender, loans are not available in every state, and fees can shrink the savings.
Is a balance transfer better than a loan for a smaller Indiana balance?
Often, yes. If you can pay off the balance within a 0% promo period, a transfer fee of a few percent usually costs less than loan interest. A fixed-rate loan is the safer choice if you need longer than the promo period.
Source: Federal Reserve Bank of New York Consumer Credit Panel/Equifax, State Level Household Debt Statistics 2003-2025 (February 2026), Q4 figures per adult with a credit file. Ranks and changes computed by Smart Debt Relief across 50 states and DC. Not affiliated with or endorsed by the Federal Reserve Bank of New York. Full state table and CSV.