There are many important choices to make when buying a car. One is how much in auto loans to take on as part of the car purchase.
Recently, American consumers as a whole have been taking on a lot of auto debt. According to Experian Automotive, there was a fairly big increase in overall outstanding auto loan balance volume in the U.S. between last year’s second quarter and this year’s second quarter. Specifically, this volume grew by $92 million. It’s been almost a decade since there has been that large of a year-over-year increase in such volume.
One hopes that in this time when a lot of auto debt is being taken on, all consumers are careful to not take on more auto debt than they can handle. Having an unmanageably high amount of auto debt can lead to many major financial problems for a person.
For one, it can lead to a person not being able to stay current on their loan payments. Currently, the nation as a whole has a relatively low auto loan payment delinquency rate. According to Experian Automotive, the national auto loan 30-day delinquency rate for 2015’s second quarter was only 2.32 percent. The picture is not as bright though here in Mississippi. That same quarter, Mississippi’s auto loan 30-day delinquency rate was 3.77 percent, the highest rate among all states.
It is discouraging that Mississippi holds this top spot, given how impactful falling behind on auto loan payments can be on a consumer. It can damage their credit score, lead to them having to deal with aggressive debt collectors and even lead to them losing their car.
That last-mentioned implication is one that may be particularly worrying to a person, given how much a person may depend on their car in connection to their work and other day-to-day activities. Thus, when considering debt relief options in relation to auto debt trouble, one thing a person may be very concerned about is whether they would be able to avoid losing their car. Bankruptcy may be able to help prevent a person from losing their car in relation to auto loan problems, depending on the circumstances. Bankruptcy attorneys can help answer questions individuals with high amounts of auto loans have about what the impacts, including car-related impacts, would likely be for them if they pursued bankruptcy.