People Are Going Into Debt Over Their Cars

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

Source:Lending Tree

Photo: Getty Images