It's no secret that cars, whether new or used, are more expensive than ever. Consequently, there's more debt tied up in auto loans. A new report from Financial Times gives us a fresh perspective on how extreme that debt has become.
Among major expenses in the average household, car loans are second only to mortgages, at nine percent of all debt. It edged past student loans in the second quarter of this year, and it's not far from mortgages, which have dropped ever-so-slightly in recent months. People are also struggling to keep up with those big payments, as delinquencies are way up. Through July, delinquencies were nearing record-high levels set back in 2009 during the global financial meltdown.
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