A record 7 million Americans are 90 days or more behind on their car loans, the Federal Reserve Bank of New York reported this week. Most of the people behind on their bills are under age 30.
The large amount of late payments are even more abundant than they were during the wake of the financial crisis era. Economists warn this is a red flag. Despite low unemployment rates being reported, many people in the US are struggling to pay their bills.
When people start falling behind on their car loan payments en masse, it is a sign of significant problems for most Americans. “The substantial and growing number of distressed borrowers suggests that not all Americans have benefited from the strong labor market,” economists at the New York Fed wrote.