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Saturday, February 16th, 2019

More Americans are behind on their car loans than ever before

Author:     Chris Isidore
Source:     CNN
Publication Date:     1:54 PM ET, Wed February 13, 2019
 Link: More Americans are behind on their car loans than ever before
Stephan:   All those happy comments you hear from Trump and his minions about how well the economy is doing are about rich people. A significant percentage -- 40% -- of ordinary Americans, couldn't write a $400 check if pressed by an emergency to do so. Here is more evidence. Facts are a bitch aren't they?

Credit: Indiamart.com

Americans are falling behind on car loan payments in record numbers.

More than 7 million car loans were past due by at least 90 days in the fourth quarter, according to data released this week from the New York Federal Reserve.

That’s 1.3 million more past-due loans than during the previous peak in 2011, which followed the Great Recession. The unemployment rate in 2011 was more than twice its current level.
The growing problem of people falling behind on car loans runs counter to the picture of a generally strong US economy. It is especially disturbing because the delinquency rate for car loans is lower than for other types of borrowing, such as credit cards and student loans.
“The substantial and growing number of distressed borrowers suggests that not all Americans have benefited from the strong labor market and warrants continued monitoring and analysis of this sector,” said the Fed’s report.