Personal loans for borrowers with the lowest credit scores and with low income can be a big problem.
The latest Federal Reserve report found that the median personal loan amount is $3,400, with a maximum of $7,000.
The average loan amount for a household earning $75,000 is $6,500, with the average loan for a family earning $115,000 the maximum.
In the latest Consumer Price Index, a consumer’s personal loan debt can be significantly higher than his or her credit score, which can increase as the borrower’s credit score decreases.
This article was updated with the latest data from the Federal Reserve and updated to include a response from the Bank of America.