Colorado Springs in top 10 for increasing car loan debt

(COLORADO SPRINGS) — Personal-finance website WalletHub released its report on the cities where auto loan debt is increasing the most, and Colorado Springs placed among the top 10.

With Americans owing over $13,000 in auto loan debt per household and $1.6 trillion in total, WalletHub wanted to look at the cities across the nation where loan debt was increasing the fastest. The data used to compile the lists was gathered from the last quarter of 2023 and the first quarter of 2024.

Cities with the biggest increases:

1. Winston-Salem, NC
2. Scottsdale, AZ
3. Fremont, CA
4. Chula Vista, CA
5. Miami, FL
6. Glendale, AZ
7. Lubbock, TX
8. Atlanta, GA
9. Anchorage, AK
10. Colorado Springs, CO

Cities with the lowest increases included Spokane, WA; San Bernardino, CO; Madison, WI, and St. Louis, MO.

“A big increase in auto loan debt in a city can either show that residents are experiencing financial difficulty because they need to borrow more, or that residents are responsible because they can qualify for larger loan amounts,” said WalletHub analyst, Cassandra Happe. “In most of the top 10 cities driving up auto debt, the extra debt is a bad sign because those cities tend to have high debt delinquency rates and a lot of people experiencing financial distress.”

Click here to view the full report.

WalletHub provided some tips on paying off your auto loan debt:

• Accelerate your payments: Consider making extra payments on your auto loan whenever possible. Paying more than the minimum amount each month reduces the principal faster, ultimately saving you money on interest and shortening the overall repayment period. Just make sure the lender won’t penalize you for paying off the loan early.
• Refinance for better terms: Explore the possibility of refinancing your auto loan to see if you qualify for a lower interest rate or more favorable terms. Refinancing can potentially reduce your monthly payments or enable you to pay off the loan more quickly. If you have good or excellent credit, you could also consider moving your debt to a balance transfer credit card with a promotional 0% APR.
• Set up automatic payments: Setting up automatic payments is a wise move with any loan, as it prevents you from being late as long as you have sufficient funds in your bank account. Some auto lenders may even give you a discount for setting up autopay.
• Budget carefully: Taking the time to create a monthly budget will help you organize your finances and put as much money as possible toward paying off your loan. Try to cut out as much unnecessary spending as you can until you’re free of debt.
• Increase your income: You’ll have more money to put toward paying off your auto loan if you work extra hours, get a part-time side job, or otherwise boost your income.

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