Are you keeping up with your car loan? Some 7 million Americans are 90 or more days behind on theirs. That’s according to new data released by the Federal Reserve Bank of New York.
The bank says this is the highest number of people in delinquency since it started collecting data 19 years ago.
So, why are delinquencies rising?
Economists say the data shows not everyone is benefiting from the current financial situation and say auto loans offer a more accurate measure of financial burden.
When it comes to credit card debt, people can dial back on their payments. That’s not the case when it comes to car loans.
Payments are fixed and there’s no wiggle room in case you’re low on cash one month. Experts say to avoid falling behind, be smart during the buying process.
One tip is to make a good down payment to get a lower monthly payment. And this is an obvious on, new cars depreciate quickly so consider buying a used one instead.
The data shows younger Americans are struggling with car loans the most so parents – this is something you may want to talk to your teenagers about before they get their first car.