Minnesota Debt Relief by the Numbers: 5-Year Debt Trends
When it comes to consumer debt, Minnesota lives in middle America—tracking the national average for many trends. The state has a reasonable cost of living, and debt levels are in line with those in much of the U.S. The average Minnesota resident shouldered $63,000 in debt in 2024. That’s only a few dollars more than the national average.
However, any amount of debt can become overwhelming if you fall behind on your payments. Data from Freedom Debt Relief shows that many Minnesota residents are feeling this pain. Debt resolution seekers in the North Star State had an average debt-to-income (DTI) ratio of 43% in the first half of 2025, up significantly from 39% in 2024.
This means Minnesotans spent more on debt repayment and had less available for savings or living expenses. And in 2024’s full year data, Minnesota debt relief seekers posted $325,391 in total debt, with $77,905 being unsecured debt. (Unsecured debt, like credit card balances and most personal loans, isn't backed by an asset like your car or home.)
Minnesotans can free up cash each month with Freedom Debt Relief
Ozzy S., Freedom client²
“Right away, I had more money each month because of program costs so much less than what I was paying on my minimums.”
Excellent •
5-Year Debt Trends in Minnesota
Consumer debt for Minnesota debt relief seekers rose by 25% over the last five years, increasing from $260,945 in 2020 to $325,391 in 2024. And their average unsecured debt balance grew 21% from $64,577 to $77,905. By contrast, the average unsecured debt for U.S. debt relief seekers grew by 8% over the same period. When consumer debt is climbing and debt growth is above average, the state's slowing economy over the last five years might be the culprit.
Age and credit scores play a large part in typical debt balances. For Minnesota residents seeking debt relief, unsecured debt peaks in the 51-to-65 age bracket, with an average of $85,242 in 2024. Debt relief seekers with fair credit (580-669) and good credit (670-739) have the highest unsecured debt balances: $87,442 and $91,764, respectively, in 2024.
Debt collection numbers in Minnesota are more positive. Among debt relief seekers with debt in collections, the average number of collection accounts has been going down, dropping from 2.2 in 2020 to 1.8 in 2024. That’s better than the national numbers (3.3 in 2020 to 2.0 in 2024). The average collection balance (for debt relief seekers with debt in collections) was $2,702 in 2024 and $2,709 in the first half of 2025, slightly lower than the national average of $3,040 and down from $3,014 in 2020.
Minnesota credit card debt
Credit card debt is a serious issue for Minnesotans seeking debt relief. On average, debt relief seekers in Minnesota carried $16,843 in credit card debt in 2024 spread across 7.4 cards, with an average of $5,904 in past-due balances. This is somewhat higher than the national average of $15,636 among those looking for debt relief. It's somewhat alarming that in the first half of 2025, credit card balances increased significantly to $17,723 and past-due balances rose to $6,278.
One of the challenges with making progress on credit card debt is that minimum payments are usually comparatively low. In Minnesota, the average monthly credit card payment in 2024 was $525. Debt relief seekers may be feeling the pinch of those payments, however, given that they show an average credit utilization of 77.3%, meaning they've borrowed against nearly 80% of their available credit. This kind of high utilization can be a sign of excessive debt that may require a credit card debt relief program.
The oldest group of consumers is also the deepest in credit card debt in Minnesota. Debt relief seekers 65 and older had the highest average credit card debt ($18,388) and past-due amount ($8,288). However, consumers aged 51 to 64 were close ($17,861) in 2024 and also had the most credit cards to manage (8.5). This group's balances surged in the first half of 2025, increasing to $19,623.
Minnesota auto loan debt
Debt relief seekers in Minnesota reported an average car payment of $698 on a loan balance of $24,061 in 2024. Both amounts have risen significantly since the start of the decade. In 2020, the average payment was $522 and the average balance was $19,069.
Minnesota mortgage debt
Most of the country has seen housing costs increase since 2020, and Minnesota is no exception. Mortgage balances for debt relief seekers have increased every year from $177,299 in 2020 to $241,535 in 2024. In the first half of 2025, that number rose again to $227,157.
Minnesota homeowners make an average monthly mortgage payment of $1,828. Debt relief seekers across the U.S. as a whole have an average monthly payment of $1,949 and an average mortgage balance of $241,535—just slightly higher than Minnesotans.
Minnesota installment loan debt
Installment loan debt is also a concern in Minnesota. The average Minnesota debt relief seeker carried $12,084 in installment loan debt in 2024, while debt relief seekers in the U.S. as a whole owed a bit less—$10,582. The average installment loan monthly payment in Minnesota was $459, slightly higher than the $436 national average for debt relief seekers.
However, this kind of debt spiked over the first half of 2025. The average balance rose to $14,906 in Minnesota and $12,632 in the U.S., a sign that those looking for debt relief could be taking out larger personal loans.
Minnesota student loan debt
Minnesotan higher education balances run about the same as the national average. Debt relief seekers here carried an average of $48,979 in student loan balances in 2024. Across the entire country, debt relief seekers carried an average student loan balance of $49,861.
Student loan debt payments have also been trending upward. In 2020, the average student loan balance for debt relief seekers in Minnesota was $37,679 and monthly payments were a more manageable $191 per month. In 2024, it was $297.
Minnesota Debt Delinquencies and Collections
Debt delinquency rates in Minnesota are well below the national average for auto loans and bankcards (credit cards), according to TransUnion data from September 2025. Minnesota's auto loan delinquency rate was just 2.37%, compared to 4.34% nationwide, and past-due credit cards averaged 2.9%, vs. 4.66% for the US as a whole. Minnesota’s mortgage delinquency rate was lower than the national average (1.89% vs. 2.89% in the U.S.).
The table below shows delinquency rates for Minnesota auto loans, credit cards, and mortgages, with the percentage that are 30, 60, and 90 days past due.
| Type of debt | 30+ DPD | 60+ DPD | 90+ DPD |
|---|---|---|---|
| Auto loan | 2.37% | 0.87% | N/A |
| Credit card | 2.90% | 1.98% | 1.41% |
| Mortgage | 1.89% | 0.86% | 0.53% |
Many people looking into debt relief in Minnesota already have accounts in collections, and the average collections balance for this group has actually dropped in the last five years from $3,014 in 2020 to $2,722 in 2024, and then to $2,709 in the first half of 2025.
This tracks with the country as a whole, where the average collection balance (for debt relief seekers with debt in collections) dropped from $3,815 in 2020 to $3,183 in 2024.
Minnesota Statute of Limitations
The statute of limitations in Minnesota is the amount of time creditors and debt collectors have to sue you to collect a past-due debt. You’re not legally required to pay time-barred debt (meaning debt that has aged out according to the statute of limitations).
Statutes of limitations depend on the location and the type of debt contract you have. But in Minnesota, the statute of limitations is the same for all types of debt: six years. Here’s a table with the types of debt and the Minnesota statute of limitations for easy reference.
| Type of debt contract | Minnesota statute of limitations |
|---|---|
| Written contracts | 6 years |
| Oral contracts | 6 years |
| Promissory notes | 6 years |
| Open-ended accounts (such as credit cards) | 6 years |
What are the Minnesota debt collection laws?
Minnesota debt collectors are governed by federal and state laws, including the Fair Debt Collection Practices Act (FDCPA). In 2024, Minnesota implemented a new law, the Minnesota Debt Fairness Act, which includes the following protections:
Ban medical debt from being reported to credit reporting agencies
Ban medical providers from withholding medically necessary care due to unpaid debt
Eliminate the old law automatically transferring medical debt to a patient’s spouse
Establish new medical debt collection rights
Extended wage garnishment protection to independent contractors
Added income-based wage garnishment limitations
Established protections from property seizure during debt collection and bankruptcy
The new law also simplifies the process for challenging wage garnishment and property levies by debt collectors.
Reviews and Testimonials from Minnesota
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Minnesota Debt Relief
A debt relief program is a way to get rid of large, overwhelming amounts of debt. You make one low monthly deposit into a dedicated debt settlement account, and a debt relief company negotiates with your creditors on your behalf. Debt relief is most appropriate for consumers who aren’t able to keep up with their debt payments.
Debt relief can take as little as 24 to 48 months and often helps make debt more manageable. In 2024, Freedom Debt Relief clients in Minnesota enrolled an average of $31,570 in debt.
If you’re looking for a Minnesota debt relief program, call Freedom Debt Relief at 800-910-0065. A Debt Consultant will speak with you about your financial situation and goals, and come up with a debt relief plan that works with your income and expenses.
Is Debt Consolidation the Best Debt Solution?
Debt consolidation is just one of several solutions to overwhelming debt. Debt consolidation could be right for you if:
You have at least fair credit.
You can avoid going back into debt.
You’re in significant debt and it’s growing.
You’re paying high interest rates on your credit cards.
Debt consolidation doesn't reduce the amount that you owe, but it can make it easier for you to manage by reducing your interest rate and/or lowering your payment. Consolidating debt also simplifies your accounting by replacing several payments with one.
Other solutions include:
Debt settlement, in which you make a lump sum payment or a series of payments to your creditor in exchange for some amount of debt forgiveness. You may be able to clear your debts for less than you owe. This could be a good option if you’ve encountered a financial hardship and are unable to repay your entire balances..
Bankruptcy, which happens in the court system and requires you to surrender certain property (Chapter 7) or commit to paying some of your future income into a bankruptcy plan (Chapter 13). The amount of debt forgiveness possible through bankruptcy ranges from 100% to zero. Filing protects you from creditor lawsuits.
Debt management plan (DMP), which can lower your interest rate and payment significantly, but doesn't reduce your balance. Credit counselors manage DMPs, and this could be right for you if you can afford a payment that will clear your balances in five years or sooner.
DIY debt repayment can be effective if you have the income to commit to a plan and the discipline to avoid adding to your debt. Options include the debt avalanche and debt snowball, in which you target one account for accelerated repayment while paying the minimum on all the rest. Apps for getting out of debt can be very helpful. Every debt cleared frees up more cash for debt repayment, and you clear these accounts one by one.
Minnesotans can free up cash each month with Freedom Debt Relief
Ozzy S., Freedom client²
“Right away, I had more money each month because of program costs so much less than what I was paying on my minimums.”
Excellent •
How do I qualify for debt consolidation in Minnesota?
To qualify for debt consolidation in Minnesota, you typically need the following:
A fair or good credit score
Steady income
Debt-to-income ratio below 50%
A good credit score improves your chances of getting approved for debt consolidation loans. If your score isn’t high right now, you can work on it. The best way is to make timely payments.
Your debt-to-income ratio is the percentage of your income (before taxes) that goes to housing and debt payments each month. You can improve your DTI by earning more money or lowering your debts.
What is the best loan for debt consolidation in Minnesota?
There are several ways to consolidate debt in Minnesota.
Personal loans generally have lower interest rates than credit cards, and collateral isn't required. However, personal loan payments are likely to be higher than your credit card minimums.
Home equity financing typically has the lowest interest rates because the loan is secured by your property. And terms are longer, which helps keep your payment affordable. However, setup costs could be high, and you could end up paying more total interest if you extend your repayment out for many years.
Balance transfer credit cards can also be used to consolidate debt. Many have a zero-interest period for 12 to 24 months. However, these cards usually require good credit and balance transfer fees reduce your savings.
Are Minnesota bankruptcy exemptions generous?
In Minnesota, bankruptcy filers can choose the federal schedule of exemptions or the state's. Minnesota bankruptcy exemptions are considered generous, especially if you want to protect home equity. Filers who rent may be better off choosing the federal schedule.
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