It’s no secret that owning a car doesn’t come cheap. Even if you can afford to buy one, all the extra expenses that come with it can easily add up, and, according to a new study, a lot of people just can't handle that.
A new Lending Tree survey finds:
- 43% of Americans say they’ve gone into debt because they had car trouble.
- 58% of those are Millennials.
- 21% of those people said their car-related debt happened in the four months since the coronavirus began.
Of course car payments aren’t the only thing putting people in debt.
28% of those surveyed say a $500 car repair would plunge them into debt.
- That’s particularly the case for Black Americans (39%), those laid off due to COVID-19 (34%) and women (32%)
- 58% of folks have skipped an important car repair because they couldn’t afford it.
- 38% say they’ve done it once or twice.
- 20% have done it many times.
- 16% of people say without their car they wouldn’t be able to get to work.
- That number goes up to 30% for those making less than $25K.
If faced with a car repair:
- 32% of people would use cash or their checking accounts.
- 27% would put it on a credit card
- 20% would dip into their savings
- 7% would borrow from friends and family
- 4% would take out a personal loan
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