Monthly used-car loan payments high in Mississippi
On behalf of The Rollins Law Firm posted in Debt Relief on Wednesday, December 9, 2015.
When a person has auto debt, the amount of their monthly payments can have big impacts on their financial life. It can impact how able their monthly budget is to adjust to sudden changed circumstances and how vulnerable they are to falling behind on their bills and debt payments.
A recent NerdWallet report indicates that Mississippians have particularly high monthly auto loan payments for used cars. In the report, 46 states (all states except Wyoming, Rhode Island, Oklahoma and Delaware) were compared in various statistical categories involving used-vehicle auto loans.
According to the report, Mississippi had the third highest average monthly used-car loan payment, with an average payment of $389.
The amount of an auto loan plays a big role in the size of a person's monthly auto loan payment. However, Mississippi was not as high up on the list for average used-car loan amount as it was on the average monthly payment list. It didn't even crack the top ten when it came to loan amount. The report indicates that the average used-car loan amount in Mississippi is $18,967, the 12th highest average in the report.
Why is Mississippi substantially higher up on the monthly payment list than it is on the loan amount list? It appears that interest rates in the state play a substantial role in this.
Interest rates are another of the significant contributors to the size of a person's monthly car payments. Having a high interest rate substantially ups the monthly payments on an auto loan.
The report found that Mississippi had the highest average used-car loan interest rate of any of the states included in the report. According to the report, the average interest rate in the state is 11.47 percent.
This illustrates how there are a variety of different factors that can push a person's monthly car payments to a high level. When a person's monthly car payments are at a financially debilitating level, they should consider having a debt relief attorney review their auto debt situation and overall financial circumstances and provide them with guidance on available debt relief choices.