Total Unsecured Personal Loan Balances Grew by more than 33% in 2022

In 2022, total unsecured personal loan balances grew by more than 33% to $177 billion.  The $44 billion increase came as the Fed began its rate hike, increasing the federal funds rate by 400 bps in 2022.  The rising rates caused many borrowers to consolidate their loans into personal loans, rather than variable-rate credit card balances which continued to increase every few months.