A record 7 million Americans have stopped paying their car loans, and even economists are surprised

Business Insider | 2/12/2019 | Tanza Loudenback
Frost123 (Posted by) Level 3
Click For Photo: https://amp.businessinsider.com/images/5c63317470a61e216c0c2392-1920-960.jpg

A new report from the Federal Reserve Bank of New York revealed 7 million Americans are behind on their auto payments by at least 90 days.

Most of the Americans who have recently fallen behind on their car payments have low credit scores or are younger than 30 years old.

Fed - Economists - Rise - Number - Borrowers

Fed economists said the rise in the number of delinquent borrowers is "surprising" considering a strong labor market and economy.

Millions of Americans are struggling with their car payments, and even economists are surprised.

Report - Federal - Reserve - Bank - New

According to a new report from the Federal Reserve Bank of New York, more than 7 million Americans have reached serious delinquency status on their auto loans, meaning they're at least 90 days behind on payments.

Fed economists said this is "surprising" considering a strengthening labor market and economy.

People - Car - Loans - Paycheck - Washington

People often prioritize car loans because many need to drive to get to work and earn a paycheck, The Washington Post's Heather Long reported. The fact that a record number of Americans aren't making those payments is "usually a sign of significant duress among low-income and working-class Americans," Long wrote.

"The substantial and growing number of distressed borrowers suggests that not all Americans have benefitted from the strong labor market and warrants continued monitoring and analysis of this sector," Fed economists wrote in a blog post dissecting the report.

Data - Borrowers - Auto - Loans - Delinquency

The data shows that most of the borrowers whose auto loans have recently moved into delinquency are people younger than 30 years old and people with low credit scores. Eight percent of borrowers with credit scores...
(Excerpt) Read more at: Business Insider
Wake Up To Breaking News!
Drove my Ford to the fjord, but the fjord was dry. . .
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!