by Rise in Delinquent Car Payments in the USA
The economic situation in the US remains tense: hiring of workers is slowing down, and the consumer price index is rising. One of the most noticeable problems recently has been the increase in the number of delinquent car payments. According to a study, 5.1% of Americans are delaying payments on auto loans, and the situation varies significantly depending on the state.
The highest rates are observed in the southern states: Mississippi (9.8%), Louisiana (8.4%), and Georgia (7.8%). Alabama, South Carolina, and Kentucky also made the top 6. Experts link this to a higher financial burden on residents of these regions. For example, the average car payment in Louisiana is $821, while the national average is $751.
Younger Generations Under Pressure
Generation Z (7.5%) and Millennials (6.9%) have the highest rates of delinquent payments, despite their auto loans being smaller on average. In contrast, among Baby Boomers, only 1.9% delay payments.
“Car payments are always a priority for Americans because most people need a car for their daily commute to work,” noted Matt Schulz, an analyst at LendingTree.
The lowest delinquency rates were recorded in Alaska, Utah, Washington, and New Hampshire (3.2% each). In 28 states, the delinquency rate does not exceed 5%.
The financial difficulties of the population are associated not only with inflation but also with general economic uncertainty. Although the situation has not yet become critical, the increase in delinquencies may signal a deepening of problems in the future. This is especially true for regions with lower incomes, where people are feeling the pressure of rising prices for all goods and services.
