SACRAMENTO, Calif — Millions of Americans use auto loans to help them afford their vehicle, but the amount of debt is growing.
New data shows Americans owe nearly $1.6 trillion shows in auto loan debt. That's more than $13,000 per household, and California isn't spared.
"Individuals taking on larger loans than they can comfortably manage could spike those prices, added to inflation, that creates this big amount of debt," said Christie Matherne, editor with WalletHub
According to WalletHub, California ranks 13th in the country for states where auto loan debt is increasing the most.
But when it comes to what people are paying each month, Californians rank third.
"Unlike a lot of states in the Top 10, in this study, California did not have a huge increase in car debt between the last two quarters of 2023," said Matherne.
WalletHub said the average auto loan amount in California is more than $22,000.
The average monthly payment is $547.
WalletHub's advice for paying off auto loans includes, accelerating payments, refinancing for better terms and setting up automatic payments, which will help you avoid late fees and possibly provide a discount, depending on the lender.
People should also always try to budget carefully.
For more information, click HERE.
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