By Erin Douglas
Updated 8:38 pm CST, Friday, January 11, 2019
Elderly Texans carry more debt than anywhere else in the nation, according to a Lending Tree report.>>So which cities led the pack? Find out in the photos that follow…Elderly Texans carry more debt than anywhere else in the nation, according to a Lending Tree report.>>So which cities led the pack? Find out in the photos that follow…
Photo: Bethany Clarke, File / Getty
Photo: Bethany Clarke, File / Getty
Texans take out some of the highest auto loans than anywhere in the nation, studies show, and that’s causing Texas seniors to carry the most non-mortgage debt in the U.S.
San Antonio, Austin and Houston seniors led the nation with the most non-mortgage debt, according to analysis of approximately 75,000 Lending Tree users between the ages of 65 and 70 years old. Houston seniors carry a median of $26,219 in debt, over $5,500 more than the national average, and 44.4 percent of their debt is for a car loan.
Younger Texans also carry a significant amount of car loans. McAllen, Houston, El Paso and San Antonio Millennials – born between 1981 and 1996 – have the highest auto loan balances than anywhere else in the country, according to a separate Lending Tree study. The median millennial car loan balance in Houston is $20,925, nearly $5,000 more than the national average.
Analysts think the reason could be Texas’ affinity for nice vehicles, particularly trucks. The average age of a used vehicle in Houston is about 5 years, the second youngest age in the country, behind Miami.
“There’s a culture of having a new car every five years and that’s unfortunate from a personal finance point of view,” said Kali McFadden, a senior research analyst at Lending Tree. “Trucks are popular, but it still seems pretty extreme the kinds of auto debt people carry.”
Consumers have taken out more in auto loans in the past five years as vehicle prices have increased, according to a report from USA Today. New vehicle prices were up 2 percent year-over-year as of September 2018, according to MarketWatch.
“The amount people are paying for cars is going up, so it kind of has a spiraling effect: You pay more, so you have longer car loans, which means that costs more in the long run in terms of interest,” McFadden said.
Having a high auto loan can pose a significant financial risk, she said. Over half of Americans don’t have $1,000 in savings for an emergency. “If you didn’t have a car payment you could save that in a couple months,” McFadden pointed out.
Generally, southern cities carry more debt than the rest of the nation. Oklahoma City, OK; Richmond, VA; and Memphis, TN were also in the top ten cities with the most senior debt.
Debt can force retirees to draw upon Social Security earlier than expected or withdraw from retirement accounts. However, southern residents often carry less mortgage debt — Houston seniors carry about $22,000 in mortgage debt, compared to the national average of $49,751, according to data provided by Lending Tree.
To reduce debt, seniors can try to pay debts off ahead of retirement, refinance their loans, consolidate debt or pursue debt relief, analysts said.
“Little things that can make a big difference for people who are entering the classic retirement year period,” McFadden said.
- Debt Settlement Website
- Debt Reduction Programs Review - A Quick Look
- How to Buy Car Insurance For Your New Car
- Magic Wand & Credit Card Debt
- Eight money tips to help young earners plan their finances
- Debt Relief Myths - How Debt Relief Programs Really Work
- Options For Debt Consolidating Loans
- Considering Auto Insurance Rates When You Buy a Car
- Debt Signs
- When Debt Consolidation Loans Spell the Difference Between Financial Renewal and Misery
- College Loan Consolidation to Reduce Student Debts
- Expressive Arts Therapy For Elderly Patients
- Tips to Control Your Debts After Credit Debt Relief
- How to Manage Your Finances - 8 Tips to Take Control of Your Finances
- Five Tips to Achieve Debt Elimination
- How a Debt Consolidation Program Will Help Get Your Finances Back on Track
- Payoff Your Debt Early, Increase Your Equity and Save on Interest Charges - An Easy to Follow Guide
- Bankruptcy Can Be the Best Solution to Your Debt Problems
- Bad Credit Debt Consolidation Guide
- Where Can You Go to Get Free Debt Consolidation?
Elderly Texans take on more debt than anywhere to finance car obsession, study shows have 793 words, post on www.chron.com at January 10, 2019. This is cached page on Europe Breaking News. If you want remove this page, please contact us.