Minnesota · West North Central
Debt consolidation in Minnesota
Only 8.55% of card balances in Minnesota are seriously late, one of the lowest rates of 51. Borrowers in good standing can shop harder for a low rate.
- $3,990
- card debt per adult, 26th of 51
- 8.55%
- of card balances 90+ days late (US 12.36%)
- +18.0%
- card debt growth since 2019 (US +28.3%)
What Minnesota households owe
Card balances per adult are up 18.0% since 2019, slower than the national +28.3% (51st fastest of 51). Balances fell from $3,380 in 2019 to $2,910 in 2020, when spending dropped and stimulus paid down cards, then climbed back to $3,990 by 2025.
Card debt is the most expensive balance most households carry, which is why it is usually the first target for consolidation. In Minnesota, cards, auto loans and student loans add up to $14,380 per adult, 7% below the national $15,470.
| Type | MN | US | MN change vs 2024 |
|---|---|---|---|
| Credit cards | $3,990 | $4,350 | +2.8% |
| Auto loans | $4,570 | $5,660 | -2.6% |
| Student loans | $5,820 | $5,460 | -4.7% |
| Mortgages | $46,300 | $44,300 | +2.0% |
| All household debt | $63,860 | $63,200 | +1.3% |
Personal loan rules in Minnesota
Minnesota caps licensed consumer loans at either 33% on the first $1,425 and 19% above that, or 21.75% on the whole loan, plus a $25 fee. Lenders that charge more than the general legal rate need a state regulated lender license.
- Loans by chapter 56 regulated lenders (principal up to $100,000): Lender's choice of 21.75% APR, or 33% per year on the first $1,425 and 19% on the rest, plus a one-time $25 administrative fee (Minn. Stat. §§ 56.131 subd. 1, 47.59 (rates) and 47.59 subd. 6(d) (fee))
- Consumer short-term loans of $1,300 or less: 50% APR, no other charges (Minn. Stat. § 47.601 subd. 2(e))
The National Consumer Law Center puts the highest APR allowed in Minnesota at 51% on a $500, six-month loan and 33% 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: Regulated lender license (Minn. Stat. § 56.01).
Loans above 36% APR made under the short-term or small-loan sections must also meet an ability-to-repay test (Minn. Stat. § 47.603). A 2026 law (2026 Minn. Laws ch. 124) amended § 56.01 and § 47.59 subd. 1 on licensing scope but did not change the rate caps.
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: Minn. Stat. § 56.131 (Revisor); Minn. Stat. § 47.59 (Revisor); Minn. Stat. § 56.01 Necessity of license (Revisor); Minn. Stat. § 47.601 consumer short-term loans (Revisor); NCLC, Predatory Installment Lending in the States (2025), full report PDF (Maps 1 and 2, Appendix C).
Using good standing to get a lower rate
With delinquency in Minnesota at 8.55% against 12.36% nationally, many borrowers here have the payment history lenders reward. Compare at least three offers on APR, origination fee and term rather than monthly payment alone, and check whether a 0% balance transfer would clear your balance before the promo ends. How to compare loan offers.
What consolidating could save at MN numbers
Take the Minnesota average of $3,990 and pay it off in 36 months. At a 24% card APR the payment is about $157 a month and the interest about $1,645. With a 12% consolidation loan the payment drops to about $133 and the interest to about $781, a difference of $865.
People who carry a balance usually owe more than the per-adult average. On $10,000 the same comparison is $4,124 of card interest against $1,957 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 Minnesota
- Debt consolidation loan: one fixed payment and end date, worth it when the APR is clearly below your card rates. How to compare offers.
- 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 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.
Minnesota next to its neighbors
Among the 7 West North Central states, Minnesota has the highest card debt per adult.
- Minnesota: $3,990 per adult, 8.55% 90+ days late
- North Dakota: $3,970 per adult, 9.02% 90+ days late
- Kansas: $3,670 per adult, 10.74% 90+ days late
- Nebraska: $3,650 per adult, 9.75% 90+ days late
- Missouri: $3,550 per adult, 11.35% 90+ days late
- South Dakota: $3,530 per adult, 9.14% 90+ days late
- Iowa: $3,250 per adult, 10.26% 90+ days late
How many Minnesota borrowers are behind
8.55% of credit card balances in Minnesota were seriously delinquent (90+ days) at the end of 2025. That is 3.8 points below the national rate of 12.36%, placing Minnesota 50th of 51 for card delinquency (1st is the highest). The rate rose 0.7 points in the past year, from 7.9% in 2024. In 2019 the share was 6.07%.
Auto loan delinquency in Minnesota stood at 3.03% (US 5.18%), and student loan delinquency at 5.82% (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 Minnesota
Non-bank consumer lenders in Minnesota are licensed by the Minnesota Department of Commerce. Before you accept an offer, look up the lender's license. To report a problem, contact the Minnesota Attorney General, Consumer Action Division or file with the CFPB. Never pay upfront fees for debt relief.
Minnesota debt consolidation FAQ
How much credit card debt does the average person in Minnesota have?
$3,990 per adult with a credit file at the end of 2025, according to New York Fed Consumer Credit Panel/Equifax data. That is 8% below the US figure of $4,350 and ranks 26th of 51. The figure includes people with no card balance, so people who do carry a balance typically owe more.
Are more people in Minnesota falling behind on credit cards?
8.55% of card balances in Minnesota were 90 or more days past due in 2025, compared with 6.07% in 2019 (up 2.5 points). The national rate was 12.36%.
Can a consolidation loan lower what borrowers in Minnesota pay in interest?
It can if the loan APR is well below your card APRs. On a $3,990 balance paid off over 36 months, a 24% card APR costs about $1,645 in interest and a 12% loan about $781. Rates depend on your credit and the lender, loans are not available in every state, and fees can shrink the savings.
What rate can a borrower in good standing in Minnesota expect?
Rates depend mostly on your score, income and debt-to-income ratio, and state rules can cap what lenders charge. Borrowers with strong credit are offered the lowest APRs, so compare several lenders and look at the fee as well as the rate.
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.