🚨 The Gist: Atlanta has ranked 8th among U.S. cities with the largest increase in auto loan debt between the last quarter of 2023 and the first quarter of 2024, according to a recent report by personal-finance website WalletHub.
🤔 Why It Matters: The increase in auto loan debt in Atlanta could be a sign that residents are facing financial challenges and need to borrow more money to afford a car. On the other hand, it might also suggest that they are qualifying for larger loan amounts. However, many of the top 10 cities on the list have high rates of people struggling to pay back their debts, which is a concerning trend.
🇺🇸 Across the Nation:
- American households owe an average of over $13,000 in auto loan debt, adding up to a total of $1.6 trillion nationwide.
- Auto loans are the second-largest type of debt for American households, after mortgages.
- In 2021, the total balance of auto loans and leases reached $1.43 trillion, compared to $1.6 trillion for student loans.
🍑 Georgia’s Auto Debt:
- Georgia has the 3rd highest auto debt per person among all states, with an average of $5,400 per person at the end of 2018.
- Nationwide, auto debt increased by over $9 billion in the last quarter of 2018, reaching $1.3 trillion. On average, each state had over $4,500 in auto debt per person.
💬 Your Take: How have rising car prices and auto loan debt impacted your family’s budget? Share your experiences and thoughts on managing the cost of owning a vehicle in the comments below.
