A record amount of more than 7 million people in America are at least 90 days behind on car payments, as the country's loan debt continues to climb, according to the New York Federal Reserve.
The New York Fed released the figures on Tuesday, which included data until the end of 2018. The 7 million Americans with severe offenses – when car loan payments are at least 90 days late ̵
"The significant and growing number of worried borrowers suggests that not all Americans have benefited from the strong labor market and guarantee continued monitoring and analysis of this sector , economists at the Fed said in an analysis of their consumer debt report.
Along with the number of serious offenses, the report says there had been an increase of $ 584 billion in total car loan debt, the highest such wave recorded by the Fed. The total loan debt amount is now $ 1.27 billion
About 6.5 percent of the total debt issued by auto finance companies was overdue n the end of 2018. The amount of debt that entered into serious default levels rose from 1.5 percent in 2012 to 2.4 percent in 2018.
The economic analysis of the report showed that auto loans held by people under 30, experienced a sharp increase in severe offenses from 2014 to 2016, while offenses for people over the age of 30 have slowly climbed. 19659002] The report said that overall credit quality improved at the end of last year, but "with growth in loan guarantees, there are now more subprime borrowers than ever, and thus a larger group of high-risk borrowers."