Americans Struggle with High Car Loan Payments as Interest Rates Rise
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A growing percentage of Americans are falling behind on car payments as interest rates rise and inflation persists.
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Most pandemic savings have been exhausted, while vehicle prices remain high, with some paying over $1000 a month.
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Interest rates on auto loans continue climbing, now over 10% for new and 11% for used vehicles.
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Total auto loan debt carried by Americans was $20 billion last quarter.
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Banks face rising losses if borrowers can't pay off vehicle loans due to high rates, balances, and used car prices.