New York · Middle Atlantic
Debt consolidation in New York
Adults in New York carry $4,820 in credit card debt on average, 11th highest of 51. At that balance the interest rate is the biggest lever you have.
- $4,820
- card debt per adult, 11th of 51
- 12.91%
- of card balances 90+ days late (US 12.36%)
- +20.2%
- card debt growth since 2019 (US +28.3%)
The interest on a typical New York balance
Take the New York average of $4,820 and pay it off in 36 months. At a 24% card APR the payment is about $189 a month and the interest about $1,988. With a 12% consolidation loan the payment drops to about $160 and the interest to about $943, a difference of $1,044.
People who carry a balance usually owe more than the per-adult average. On $12,000 the same comparison is $4,949 of card interest against $2,349 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.
Personal loan rules in New York
New York generally caps loan interest at 16% a year. Lenders licensed by the state can charge up to 25% on consumer loans of $25,000 or less, and charging more than 25% is criminal usury.
- Loans by unlicensed lenders (civil usury limit): 16% per year (N.Y. Banking Law § 14-a; N.Y. Gen. Oblig. Law § 5-501)
- Licensed lender consumer loans of $25,000 or less: 25% per year (criminal usury ceiling) (N.Y. Banking Law §§ 340, 351; N.Y. Penal Law §§ 190.40, 190.42)
The National Consumer Law Center puts the highest APR allowed in New York at 25% on a $500, six-month loan and 25% on a $2,000, two-year loan (State Annual Percentage Rate (APR) Caps For $500, $2,000 and $10,000 Installment Loans (NCLC fact sheet, December 2025; figures current as of September 2025)).
Non-bank lenders need a state license to make these loans. License: Licensed Lender license (Banking Law Article 9), required for consumer loans of $25,000 or less above 16% (N.Y. Banking Law § 340).
Loans above the 16% civil usury limit made without a license are void and unenforceable under N.Y. Gen. Oblig. Law § 5-511, per DFS.
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: NY DFS, Online Lending Report (July 2018); NCLC, State APR Caps for $500, $2,000 and $10,000 Installment Loans, December 2025.
Interest saved at different balances
With New York balances among the highest in the country, here is how the same 24% card vs 12% loan comparison scales. Each line is a 36-month payoff.
| Balance | Card payment | Loan payment | Interest saved |
|---|---|---|---|
| $5,000 | $196/mo | $166/mo | $1,083 |
| $10,000 | $392/mo | $332/mo | $2,167 |
| $12,000 | $471/mo | $399/mo | $2,600 |
| $20,000 | $785/mo | $664/mo | $4,333 |
Where the $4,820 fits in New York household debt
Card balances per adult are up 20.2% since 2019, slower than the national +28.3% (47th fastest of 51). Balances fell from $4,010 in 2019 to $3,410 in 2020, when spending dropped and stimulus paid down cards, then climbed back to $4,820 by 2025.
Card debt is the most expensive balance most households carry, which is why it is usually the first target for consolidation. In New York, cards, auto loans and student loans add up to $15,200 per adult, about the same as the national $15,470.
| Type | NY | US | NY change vs 2024 |
|---|---|---|---|
| Credit cards | $4,820 | $4,350 | +3.7% |
| Auto loans | $4,320 | $5,660 | -3.1% |
| Student loans | $6,060 | $5,460 | -0.7% |
| Mortgages | $41,110 | $44,300 | +0.8% |
| All household debt | $59,420 | $63,200 | +0.8% |
Your options in New York
- 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.
New York next to its neighbors
Among the 3 Middle Atlantic states, New York has the 2nd highest card debt per adult.
- New Jersey: $5,160 per adult, 11.41% 90+ days late
- New York: $4,820 per adult, 12.91% 90+ days late
- Pennsylvania: $3,950 per adult, 12.34% 90+ days late
How many New York borrowers are behind
12.91% of credit card balances in New York were seriously delinquent (90+ days) at the end of 2025. That is 0.6 points above the national rate of 12.36%, so New York ranks 13th of 51 for card delinquency. The rate rose 0.9 points in the past year, from 11.97% in 2024. In 2019 the share was 8.96%.
Auto loan delinquency in New York stood at 4.27% (US 5.18%), and student loan delinquency at 7.73% (US 8.25%). If you are already behind, a consolidation loan can be harder to get, so read our guide to consolidation loans with bad credit .
Checking a lender in New York
Non-bank consumer lenders in New York are licensed by the New York State Department of Financial Services (NYDFS). Before you accept an offer, look up the lender's license. To report a problem, file with the New York Attorney General, Bureau of Consumer Frauds and Protection or the CFPB. Never pay upfront fees for debt relief.
New York debt consolidation FAQ
How much credit card debt does the average person in New York have?
$4,820 per adult with a credit file at the end of 2025, according to New York Fed Consumer Credit Panel/Equifax data. That is 11% above the US figure of $4,350 and ranks 11th of 51. The figure includes people with no card balance, so people who do carry a balance typically owe more.
Are more people in New York falling behind on credit cards?
12.91% of card balances in New York were 90 or more days past due in 2025, compared with 8.96% in 2019 (up 3.9 points). The national rate was 12.36%.
Can a consolidation loan lower what borrowers in New York pay in interest?
It can if the loan APR is well below your card APRs. On a $4,820 balance paid off over 36 months, a 24% card APR costs about $1,988 in interest and a 12% loan about $943. Rates depend on your credit and the lender, loans are not available in every state, and fees can shrink the savings.
Is a consolidation loan worth it on a large New York balance?
The larger the balance, the more the rate matters. On $20,000 over 36 months, moving from a 24% card APR to a 12% loan saves about $4,333 in interest, before any origination fee.
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.