Some 7 million Americans are 90 or more days behind on their car loans.
That’s according to new data released by the Federal Reserve Bank of New York.
The bank says this is the highest number of people in delinquency since it started taking this data 19 years ago.
So, with a strong economy and labor market, why are delinquencies rising?
Economists say the data shows not everyone is benefiting from the current financial situation.
And say auto loans offer a more accurate measure of financial burden.
When it comes to credit card debt– people can dial back on their payments.
That’s not the case when it comes to car loans.
Payments are fixed and there’s no wiggle room in case you’re low on cash one month.
Experts say to avoid falling behind be smart during the buying process.
One tip, make a good down payment to get a lower monthly payment.
And new cars depreciate quickly so consider buying a used one instead.
The data show younger Americans are struggling with car loans the most.