New Study Shows Michigan Struggling With Car Loan Debt

Does anyone else feel like the cost of everything is going up? Those simple pleasures that used to cost you little to nothing now cost you more than they used to. You're not alone, it's a growing trend across the state of Michigan and even the country.

New data is showing that some Americans are trying to stretch their household budgets, but are falling behind a bit when it comes to their car loans.

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WalletHub, recently analyzed the states that are overspending most of their paycheck on their auto loans. Michigan was lucky enough not to rank amongst the worst 10 states, which are putting most of their paycheck towards their auto loans. But, we didn't do that great either, which means we may be overextending ourselves here in Michigan.

Top 5 States For Overspending On Their Car Loans

1. Delaware (+8.77%)

2. Kansas (+7.89%)

3. New Hampshire (+7.41%)

4. Montana (+7.36%)

5. Oklahoma (+7.21%)

States With the Lowest Increases:

• Arkansas (+2.02%)

• New Jersey (+2.06%)

• Wyoming (+2.15%)

• Utah (+2.16%)

• Hawaii (+2.28%)

Michigan’s Rank in Auto Loan Delinquency

The study shows that Michigan ranks 36th in the nation with a 3.96% increase in its auto loan delinquency between Q3 and Q4 of 2024. Many people, even in Mid-Michigan and Lansing, have reached their financial limit with the added expenses. Here in Lansing, the average new car loan hovers at around $35,00,0 with monthly payments often higher than $600.

If you find yourself struggling with payments, there are nonprofit credit counseling services available. If you're car shopping right now too, it's probably best to consider some pre-approval options, with shorter loan terms, which can avoid long-term debt traps.