Texas · West South Central
Debt consolidation in Texas
14.19% of credit card balances in Texas are 90 or more days past due, above the national 12.36%. If you are one of the people behind, the order you try things in matters.
- $4,620
- card debt per adult, 15th of 51
- 14.19%
- of card balances 90+ days late (US 12.36%)
- +33.1%
- card debt growth since 2019 (US +28.3%)
Falling behind in Texas
14.19% of credit card balances in Texas were seriously delinquent (90+ days) at the end of 2025. That is 1.8 points above the national rate of 12.36%, so Texas ranks 4th of 51 for card delinquency. The rate rose 1.2 points in the past year, from 12.99% in 2024. In 2019 the share was 9.2%.
Auto loan delinquency in Texas stood at 5.76% (US 5.18%), and student loan delinquency at 9.48% (US 8.25%). Late payments lower your credit score, which makes a low-rate consolidation loan harder to get. That is why the next section starts with options that do not depend on a new loan.
Personal loan rules in Texas
Texas sets consumer loan limits by loan size, with lower rates on bigger balances, and separate small-loan rules that allow fees pushing the APR on a $500 loan above 100%. Non-bank lenders charging more than 10% need a Regulated Lender License from the OCCC.
- Chapter 342 Subchapter E loans (not secured by real estate), simple-interest method: 30% a year on the lowest bracket, 24% on the middle bracket, 18% on the top bracket. Brackets are based on $500, $1,050 and $2,500 reference amounts that are adjusted every year for inflation (Tex. Fin. Code § 342.201(e))
- Chapter 342 Subchapter E loans, add-on method (alternative): Add-on interest of $18 per $100 per year on the lower bracket and $8 per $100 per year above it, plus an administrative fee (Tex. Fin. Code § 342.201(a), (f); 7 Tex. Admin. Code § 83.503)
- Chapter 342 Subchapter F small loans: Acquisition charge (12.5% of the advance or $125, whichever is less, on larger small loans) plus a monthly account handling fee (Tex. Fin. Code §§ 342.252, 342.259 (as described by NCLC))
The National Consumer Law Center puts the highest APR allowed in Texas at 116% on a $500, six-month loan and 37% 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: Regulated Lender License (Tex. Fin. Code § 342.051).
The rate brackets change each year, so check the regulator's (OCCC) 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: Tex. Fin. Code § 342.201; Tex. Fin. Code § 342.051 License Required; OCCC, Regulated Lenders; NCLC, Predatory Installment Lending in the States (Dec. 2025), Maps 1 and 2 and Appendix C; NCLC fact sheet, State APR Caps for $500, $2,000 and $10,000 Installment Loans (Nov. 2024).
If you are already behind in Texas
- Call your card issuers first. Most have hardship programs that cut the rate or pause payments for a few months. Ask before an account goes to collections.
- Talk to a nonprofit credit counselor. A debt management plan can lower card rates without a new loan. Look for an agency that belongs to the NFCC. How a DMP compares with a loan.
- Check a consolidation loan once payments are current. Lenders weigh recent late payments heavily. Loans for bad credit explains what to expect.
- Know your rights with collectors. What happens if you ignore debt collectors.
What Texas households owe
Card balances per adult are up 33.1% since 2019, faster than the national +28.3% (10th fastest of 51). Balances fell from $3,470 in 2019 to $3,080 in 2020, when spending dropped and stimulus paid down cards, then climbed back to $4,620 by 2025.
Card debt is the most expensive balance most households carry, which is why it is usually the first target for consolidation. In Texas, cards, auto loans and student loans add up to $17,760 per adult, 15% above the national $15,470.
| Type | TX | US | TX change vs 2024 |
|---|---|---|---|
| Credit cards | $4,620 | $4,350 | +4.1% |
| Auto loans | $8,000 | $5,660 | +1.0% |
| Student loans | $5,140 | $5,460 | -2.5% |
| Mortgages | $39,230 | $44,300 | +5.1% |
| All household debt | $60,020 | $63,200 | +3.7% |
Options if you are behind in Texas
- 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.
- 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.
What consolidating could save at TX numbers
Take the Texas average of $4,620 and pay it off in 36 months. At a 24% card APR the payment is about $181 a month and the interest about $1,905. With a 12% consolidation loan the payment drops to about $153 and the interest to about $904, a difference of $1,001.
People who carry a balance usually owe more than the per-adult average. On $11,500 the same comparison is $4,742 of card interest against $2,251 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.
Texas next to its neighbors
Among the 4 West South Central states, Texas has the highest card debt per adult.
Checking a lender in Texas
Non-bank consumer lenders in Texas are licensed by the Texas Office of Consumer Credit Commissioner (OCCC). Before you accept an offer, look up the lender's license. To report a problem, file with the Texas Attorney General, Consumer Protection Division or the CFPB. Never pay upfront fees for debt relief.
Texas debt consolidation FAQ
How much credit card debt does the average person in Texas have?
$4,620 per adult with a credit file at the end of 2025, according to New York Fed Consumer Credit Panel/Equifax data. That is 6% above the US figure of $4,350 and ranks 15th of 51. The figure includes people with no card balance, so people who do carry a balance typically owe more.
Are more people in Texas falling behind on credit cards?
14.19% of card balances in Texas were 90 or more days past due in 2025, compared with 9.2% in 2019 (up 5.0 points). The national rate was 12.36%.
Can a consolidation loan lower what borrowers in Texas pay in interest?
It can if the loan APR is well below your card APRs. On a $4,620 balance paid off over 36 months, a 24% card APR costs about $1,905 in interest and a 12% loan about $904. Rates depend on your credit and the lender, loans are not available in every state, and fees can shrink the savings.
Can I consolidate debt in Texas if I am already behind on payments?
It is harder. Recent late payments lower your score and most lenders weigh them heavily. Start with your card issuers' hardship programs or a nonprofit debt management plan, then check a consolidation loan once your payments are current.
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.