According to fed researchers, 6.5 percent of car loans are 90 days or more past due, compared to 0.7 percent of credit union-serviced loans.
Faye Park, president of the U.S. Public Interest Research Group, told the Washington Post:
"Predatory lending practices and a lack of real transportation options leave many households trapped in debt with few ways out."
Senior director at Fitch Ratings, Michael Taiano, added:
"Your car loan is your No. 1 priority in terms of payment. If you don't have a car, you can't get back and forth to work in a lot of areas of the country. A car is usually a higher-priority payment than a home mortgage or rent."
The U.S. housing mortgage industry is valued at around $9 trillion; the auto loan market, $1 trillion.
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Ted Millar is a writer and teacher. His work has been in featured in myriad literary journals, including Straight Forward Poetry, Better Than Starbucks, the Broke Bohemian, Caesura, Circle Show, Cactus Heart, Third Wednesday, and The Voices (more...)