Personal Finance

Hello, San Antonio! Seniors residing in this Texas city have the have the largest non-mortgage debt balances.

Those were the findings from a study by LendingTree. The site, an online loan marketplace, analyzed the data of more than 75,000 of its users.

Excluding mortgages, residents of San Antonio between 65 and 70 years of age carried a median debt balance of $29,993, LendingTree found.

It must be a Texas thing: Austin followed in second place, with older residents had a median debt balance of $26,424.

Houston rounded out the top three: Residents in the 65 to 70 age cohort had a median debt balance of $26,219.

Auto loans make up the lion’s share of debt for these seniors, LendingTree found.

On average, more than 45 percent of the median balance owed by older individuals in San Antonio was attributable to car loans.

“My personal theory is that it’s trucks; they’re expensive,” said Kalie McFadden, senior research analyst at LendingTree.

“One thing that people tend to overlook is the premium for brand new cars,” she said.

“People used to take out a standard car loan of 60 months, but now the average loan is pushing up,” said McFadden.

In fact, as of the third quarter in 2018, the average term on a loan for a new car was nearly 69 months — or five years and nine months — according to Experian.

Meanwhile, the average monthly payment has hit a high of $530, up $28 from the prior year, Experian found. Interest rates also vary wildly, swinging from 3 percent to more than 10 percent, based largely on your credit score, according to ValuePenguin.

“That $30,000 car doesn’t cost you $30,000 if you take out a loan,” said McFadden.

More from Personal Finance
Auto debt in America — mapped
Nearly 40,000 mortgages could be caught up in the shutdown
How you manage debt will affect those retirement dreams

Subscribe to CNBC on YouTube.

Products You May Like

Articles You May Like

National Enquirer reportedly paid girlfriend’s brother $200,000 for private Bezos texts
The business of college advisors is booming. Here’s how to navigate the consulting process
He just had $60,000 in student debt cancelled — and the Education Department refunded him money
A slew of CEOs charged in college entrance cheating scam
Probe into death of model who was witness against ex-Italian prime minister in sex party inquiry

Leave a Reply

Your email address will not be published. Required fields are marked *