Washington Auto Loan Delinquency up 12.89%

Americans are sinking further into debt. And, in Washington that’s happening faster than in other states, especially when it comes to car loans.

“Washington’s rate of auto loan delinquencies increased 12.89% between Q3 and Q4 last year, and the share of average number of auto loan delinquencies in Q4 was 10.69, or 10.67%. So that basically means that Washington has a very high rate of increase, in auto loan delinquencies,” says Christie Matherne, Editor of WalletHub.

That 12.89% increase means Washington state’s auto loan delinquencies are out pacing every other state.

Christie says not making your car payment is a terrible idea. “A tanked credit score can do a lot of damage in your life. It can make things more expensive. It can make the next car loan that you take out have a crazy high rate. It’s not something that you want to get too deep into.”

Credit card debt in our state isn’t looking much better. In that category Washington remains in the top ten.

“Washington ranks eighth on our biggest delinquent credit card account increases, with a nearly 42% increase between the third quarter of 2022 and the third quarter in 2023. That is a huge increase. 42% is wild,” says Christie.

In our state we carry an average of $7,728 in credit card debt, $4,620 in auto loan debt and $307,407 in mortgage debt, which is more than $70,000 higher than the national average.

The fed is raising rates in an attempt to slow down our spending and experts say, heed their advice. Tighten your purse strings and pay your debts.

“A lot of economists would agree that the best thing you can do is cut down on your spending. Try and keep your money sacred as well as you can,” says WalletHub.

If you are struggling with your debt, rather than defaulting there are other options. The place to find a qualified debt counselor is here, at the National Foundation of Credit Counseling.

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