More than 4% of borrowers aged 18-29 are behind on their car payment more than 90 days, enough to be fearful of repossession. Further, more than 8% of borrowers with a credit score under 620 are categorized as “seriously delinquent”. This data suggests that the American youth, largely with unestablished credit, are having a difficult time in the current economy.

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From a pragmatic perspective, the Washington Post says, “A car loan is typically the first payment people make because a vehicle is critical to getting to work, and someone can live in a car if all else fails.” Continuing by stating that this is usually a sign that low-income and working-class Americans are struggling.

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While this could be a big indicator of larger problems, the car loan industry is unlikely to lead to economic collapse as the mortgage industry did in 2008. For one thing, a new car loan averages to about $35,000 per, while houses are generally in the hundreds of thousands of dollars. Because of that simple fact, all car debt in this country accounts for just over $1 trillion, while home mortgage debt is a staggering $9 trillion industry.

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If people aren’t paying their car note, however, what else aren’t they able to pay? Student loan debt? Rent? It’s not a great sign for economic growth, in any case. I’m not suggesting you go start a run on the banks, but maybe just be cautious with your spending until things shake out a bit.