Michigan · East North Central
Debt consolidation in Michigan
Adults in Michigan with a credit file carry $3,670 in credit card debt on average, 16% below the national $4,350. 11.28% of those balances are 90 or more days past due.
- $3,670
- card debt per adult, 36th of 51
- 11.28%
- of card balances 90+ days late (US 12.36%)
- +28.3%
- card debt growth since 2019 (US +28.3%)
What Michigan households owe
Card balances per adult are up 28.3% since 2019, slower than the national +28.3% (19th fastest of 51). Balances fell from $2,860 in 2019 to $2,520 in 2020, when spending dropped and stimulus paid down cards, then climbed back to $3,670 by 2025.
Card debt is the most expensive balance most households carry, which is why it is usually the first target for consolidation. In Michigan, cards, auto loans and student loans add up to $14,330 per adult, 7% below the national $15,470.
| Type | MI | US | MI change vs 2024 |
|---|---|---|---|
| Credit cards | $3,670 | $4,350 | +4.3% |
| Auto loans | $4,960 | $5,660 | -0.8% |
| Student loans | $5,700 | $5,460 | -2.9% |
| Mortgages | $30,600 | $44,300 | +3.3% |
| All household debt | $48,050 | $63,200 | +2.3% |
Personal loan rules in Michigan
Michigan lets licensed consumer lenders charge up to 25% a year, plus a loan processing fee of up to 5% of the loan amount with a dollar cap. Lenders charging more than the general legal rate need a state license.
- Closed-end loans by Regulatory Loan Act licensees (and regulated lenders under the Credit Reform Act): 25% per year, plus a loan processing fee of up to 5% of principal subject to a dollar cap that is adjusted for inflation every two years (Mich. Comp. Laws §§ 493.13, 445.1854)
The National Consumer Law Center puts the highest APR allowed in Michigan at 43% on a $500, six-month loan and 30% 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?, NCLC, December 2025 (Maps 1 and 2)).
Non-bank lenders need a state license to make these loans. License: Regulatory Loan license, or a license under the Consumer Financial Services Act (Mich. Comp. Laws § 493.2).
The processing fee's dollar cap is adjusted every two years, so check the regulator's current figures.
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: MCL 493.13, Regulatory Loan Act (Michigan Legislature); MCL 493.2, license required (Michigan Legislature); MCL 445.1854, Credit Reform Act (Michigan Legislature); NCLC, Predatory Installment Lending in the States (2025), full report PDF (Maps 1 and 2, Appendix C).
How many Michigan borrowers are behind
11.28% of credit card balances in Michigan were seriously delinquent (90+ days) at the end of 2025. That is 1.1 points below the national rate of 12.36%, placing Michigan 27th of 51 for card delinquency (1st is the highest). The rate rose 0.8 points in the past year, from 10.48% in 2024. In 2019 the share was 6.88%.
Auto loan delinquency in Michigan stood at 6.25% (US 5.18%), and student loan delinquency at 7.69% (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 .
Michigan next to its neighbors
Among the 5 East North Central states, Michigan has the 2nd highest card debt per adult.
Ten years of card debt in Michigan
Card debt per adult in Michigan has changed +56.2% since 2015 and +4.3% in the last year alone (US +4.1%).
| Year | MI | US |
|---|---|---|
| 2015 | $2,350 | $2,800 |
| 2019 | $2,860 | $3,390 |
| 2020 | $2,520 | $2,970 |
| 2024 | $3,520 | $4,180 |
| 2025 | $3,670 | $4,350 |
What consolidating could save at MI numbers
Take the Michigan average of $3,670 and pay it off in 36 months. At a 24% card APR the payment is about $144 a month and the interest about $1,513. With a 12% consolidation loan the payment drops to about $122 and the interest to about $718, a difference of $795.
People who carry a balance usually owe more than the per-adult average. On $9,000 the same comparison is $3,711 of card interest against $1,761 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.
Your options in Michigan
- 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.
- 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.
Checking a lender in Michigan
Non-bank consumer lenders in Michigan are licensed by the Michigan Department of Insurance and Financial Services (DIFS). Before you accept an offer, look up the lender's license. To report a problem, contact the Michigan Attorney General, Consumer Protection Division or file with the CFPB. Never pay upfront fees for debt relief.
Michigan debt consolidation FAQ
How much credit card debt does the average person in Michigan have?
$3,670 per adult with a credit file at the end of 2025, according to New York Fed Consumer Credit Panel/Equifax data. That is 16% below the US figure of $4,350 and ranks 36th of 51. The figure includes people with no card balance, so people who do carry a balance typically owe more.
Are more people in Michigan falling behind on credit cards?
11.28% of card balances in Michigan were 90 or more days past due in 2025, compared with 6.88% in 2019 (up 4.4 points). The national rate was 12.36%.
Can a consolidation loan lower what borrowers in Michigan pay in interest?
It can if the loan APR is well below your card APRs. On a $3,670 balance paid off over 36 months, a 24% card APR costs about $1,513 in interest and a 12% loan about $718. Rates depend on your credit and the lender, loans are not available in every state, and fees can shrink the savings.
Does debt consolidation hurt your credit in Michigan?
Checking offers uses a soft inquiry and does not affect your score. Accepting a loan adds a hard inquiry and a new account, which can dip your score briefly, while paying down card balances usually helps over time.
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.