With Americans carrying nearly $1.6 trillion in auto loan debt, or more than $13,400 per household, personal finance website WalletHub released its report on the states where auto loan debt is rising the most. .
In the list, Wyoming is at the top of the ranking as the state where debts have grown the most, against Rhode Island, at the bottom of the list.
WalletHub ranked the states with the largest increases in auto loan debt, based on its proprietary data on consumer debt from the third quarter of 2023 to the fourth quarter of 2023.
The average household owes more than $13,400, as of the third quarter of 2023, which is just a few hundred dollars below the all-time high.
“From the third quarter of 2023 to the fourth quarter of 2023, residents of most states had less than a 1% increase in their average auto loan balance or actually had that average decrease. Some states had more dramatic increases, up to around 3%, suggesting that people in some states are either more affected by inflation in car prices or are spending more than they can afford in terms of loans. said John Kiernan, Editor of WalletHub.
State: (1) Wyoming
Total score: 75.97
State: (2) South Dakota
Total score: 73.87
State: (3) Texas
Total score: 63.37
State: (4) Delaware
Total score: 55.86
State: (5) Minnesota
Total score: 54.79
In contrast:
State: (46) Connecticut
Total score: 24.97
State: (47) Montana
Total score: 20.67
State: (48) Utah
Total score: 15.88
State: (49) Missouri
Total score: 14.17
State: (50) Rhode Island
Total score: 6.46
To determine the states with the largest increases in auto loan debt, WalletHub compared all 50 states on two key dimensions: 1) Change in auto loan debt and 2) Average auto loan balance and monthly payment.
The site evaluated states using three individual metrics, which were based on WalletHub’s proprietary data on consumer debt. Metrics were scored on a 100-point scale.
Wyoming Case
Wyoming residents have an extremely high average auto loan balance of $22,104, reaching that figure after increasing their average by nearly 1.9% between the third and fourth quarters of 2023. Wyoming residents pay $543 per month for your auto loan debt, on average.
WalletHub notes that a silver lining for Wyoming car owners is that although their auto loans are expensive, owning a car is generally cheaper than in most other states, with the state ranking 11th in when it comes to the cost of car ownership and maintenance.
The report indicates that while Wyoming residents are increasing their auto loan debt at a rapid pace, they are accruing other debt more slowly. In fact, Wyoming ranks last in credit card debt increases by state.
To view the full report and its methodology, go here.
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