What are the states with the highest number of vehicle loan defaulters?

MIAMI.- Defaulting on debt can cause long-term damage to your credit score and cost you a lot of money. With the rate of loan defaults for vehicles growing, the personal finance website WalletHubpublished a report with the States that have suffered an increase in the number of defaulters.

The study assessed all 50 states using proprietary user data on consumer delinquency rates between the third and fourth quarters of 2023, to identify entities where auto loan delinquencies are increasing. further.

According to this analysis, Washington is the state with the largest increase in auto loan delinquencies, with delinquencies 12.9% higher in the fourth quarter of 2023 compared to the third quarter.

“The good news is that, despite this huge increase, Washington is still has one of the lowest auto loan delinquency rates in general, with around 10.7% of borrowers behind on their payments,” the report highlights.

He also notes that people in the “green state” are increasing their auto loan debt much more slowly than people in other states. In this sense, the website anticipates that future increases in delinquencies will be minimized.

States with the highest increase in delinquencies

The second position is occupied Alaskawith a delay in vehicle loan payment commitments of 12.5% more for the fourth quarter of last year.

“Alaskans have the Highest average auto loan debt in the countrywhich means that interest can easily get out of control while people miss payments, especially when late fees are also applied,” WalletHub warns.

The third place in late payment of car loans is occupied by Oregonwith an increase of 11.7% between the third and fourth quarters of 2023. Despite this, the “sunset state” records a low rate of auto loan delinquencies in general.

“About 10.3% of borrowers are behind on their payments, surpassing all but three states despite the recent increase,” the report mentions.

What position does Florida occupy?

Florida It is ranked thirty-first among the states with the greatest increase in delays in vehicle loan payments. The state had an increase in delinquencies of 7.88% in the third quarter of 2023 compared to the fourth quarter.

For the last quarter of last year, the default rate reached 12.36%.

“When it comes to auto loan debt, late payments also have another dire consequence: After a long enough period of time, your car may even be repossessed,” WalletHub notes.

John Kiernan, editor of the website, advises people to bring their accounts up to date as soon as possible to “minimize the consequences” of the delays. “If you pay less than 30 days late, your late payment will not be reported to the credit bureaus, although you may still owe a late payment fee. “If you are more than 30 days late, talk to your lender so they don’t start the process of repossessing your car while you figure out how to pay,” he notes.