Tennessee · East South Central
Debt consolidation in Tennessee
Card debt per adult in Tennessee has grown 34.4% since 2019, 5th fastest of 51. It now stands at $3,710.
- $3,710
- card debt per adult, 34th of 51
- 11.59%
- of card balances 90+ days late (US 12.36%)
- +34.4%
- card debt growth since 2019 (US +28.3%)
Why Tennessee card debt is climbing faster
Card debt per adult in Tennessee has changed +63.4% since 2015 and +5.7% in the last year alone (US +4.1%). Faster growth usually means more people are carrying a balance from month to month, and at card rates that balance compounds quickly.
| Year | TN | US |
|---|---|---|
| 2015 | $2,270 | $2,800 |
| 2019 | $2,760 | $3,390 |
| 2020 | $2,460 | $2,970 |
| 2024 | $3,510 | $4,180 |
| 2025 | $3,710 | $4,350 |
Personal loan rules in Tennessee
Tennessee lets registered industrial loan and thrift lenders charge up to 36% interest on loans of $100 or more, plus sizeable upfront and monthly charges, so the true APR on a small loan can be far higher. Lenders need a state certificate of registration.
- Industrial loan and thrift registrants, loans of $100 or more (since July 1, 2025): 36% maximum effective annual interest rate, plus permitted loan charges (acquisition charge raised to 12.5% of principal on loans of $100 up to $2,000) (Tenn. Code Ann. §§ 45-5-301(2), 45-5-403(b), as amended by 2025 Tenn. Pub. Ch. 70 (S.B. 694))
- Industrial loan and thrift registrants, loans under $100: 7.5% nominal discount rate, not over 18% effective annual rate (Tenn. Code Ann. § 45-5-301(2))
The National Consumer Law Center puts the highest APR allowed in Tennessee at 114% on a $500, six-month loan and 49% 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).
Non-bank lenders need a state license to make these loans. License: Industrial Loan and Thrift certificate of registration (Tenn. Code Ann. § 45-5-103).
Before July 1, 2025 the caps were 30% (loans $100 to $5,000) and 24% (over $5,000). NCLC reports this change raised the maximum APR for its sample loans from 106% to 114% ($500) and 43% to 49% ($2,000). NCLC's high figures come from the acquisition charge plus a monthly account handling charge allowed by § 45-5-403(b).
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: TDFI, Tennessee Industrial Loan & Thrift; TDFI 2025 Annual Report (summary of Public Chapter 70); Tennessee Code Annotated Title 45, §§ 45-5-103, 45-5-301 (pre-2025 text); NCLC, Predatory Installment Lending in the States (Dec. 2025), Maps 1 and 2 and Appendix C.
What Tennessee households owe
Card balances per adult are up 34.4% since 2019, faster than the national +28.3% (5th fastest of 51). Balances fell from $2,760 in 2019 to $2,460 in 2020, when spending dropped and stimulus paid down cards, then climbed back to $3,710 by 2025.
Card debt is the most expensive balance most households carry, which is why it is usually the first target for consolidation. In Tennessee, cards, auto loans and student loans add up to $14,640 per adult, 5% below the national $15,470.
| Type | TN | US | TN change vs 2024 |
|---|---|---|---|
| Credit cards | $3,710 | $4,350 | +5.7% |
| Auto loans | $5,810 | $5,660 | +0.3% |
| Student loans | $5,120 | $5,460 | -2.3% |
| Mortgages | $37,910 | $44,300 | +4.6% |
| All household debt | $56,690 | $63,200 | +3.6% |
What consolidating could save at TN numbers
Take the Tennessee average of $3,710 and pay it off in 36 months. At a 24% card APR the payment is about $146 a month and the interest about $1,530. With a 12% consolidation loan the payment drops to about $123 and the interest to about $726, a difference of $804.
People who carry a balance usually owe more than the per-adult average. On $9,500 the same comparison is $3,918 of card interest against $1,859 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.
How many Tennessee borrowers are behind
11.59% of credit card balances in Tennessee were seriously delinquent (90+ days) at the end of 2025. That is 0.8 points below the national rate of 12.36%, placing Tennessee 23rd of 51 for card delinquency (1st is the highest). The rate rose 1.1 points in the past year, from 10.51% in 2024. In 2019 the share was 7.79%.
Auto loan delinquency in Tennessee stood at 5.69% (US 5.18%), and student loan delinquency at 7.61% (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 .
Your options in Tennessee
- 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.
Tennessee next to its neighbors
Among the 4 East South Central states, Tennessee has the highest card debt per adult.
- Tennessee: $3,710 per adult, 11.59% 90+ days late
- Alabama: $3,400 per adult, 12.22% 90+ days late
- Kentucky: $3,140 per adult, 11.84% 90+ days late
- Mississippi: $3,030 per adult, 13.36% 90+ days late
Checking a lender in Tennessee
Non-bank consumer lenders in Tennessee are licensed by the Tennessee Department of Financial Institutions (TDFI). Before you accept an offer, look up the lender's license. To report a problem, file with the Tennessee Attorney General, Division of Consumer Affairs or the CFPB. Never pay upfront fees for debt relief.
Tennessee debt consolidation FAQ
How much credit card debt does the average person in Tennessee have?
$3,710 per adult with a credit file at the end of 2025, according to New York Fed Consumer Credit Panel/Equifax data. That is 15% below the US figure of $4,350 and ranks 34th of 51. The figure includes people with no card balance, so people who do carry a balance typically owe more.
Are more people in Tennessee falling behind on credit cards?
11.59% of card balances in Tennessee were 90 or more days past due in 2025, compared with 7.79% in 2019 (up 3.8 points). The national rate was 12.36%.
Can a consolidation loan lower what borrowers in Tennessee pay in interest?
It can if the loan APR is well below your card APRs. On a $3,710 balance paid off over 36 months, a 24% card APR costs about $1,530 in interest and a 12% loan about $726. Rates depend on your credit and the lender, loans are not available in every state, and fees can shrink the savings.
Why is credit card debt rising so fast in Tennessee?
The New York Fed data shows how much balances grew (+34.4% per adult since 2019), not why. Rising prices and more people carrying a balance month to month can both push it up. Whatever the cause, a growing balance at card rates is the case consolidation is built for.
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.