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IPFS News Link • Finance - Money Management

When a Car is a House . . .

• https://www.ericpetersautos.com by Eric

Including whatever comes up that you didn't expect, but always does.

Imagine spending half that 30 percent – imagine spending all of that 30 percent or even more – on a car payment.

Apparently, a lot of young people did just that over the past couple of years – and now they're broke and not keeping up on their car payments. According to Jerry, a car insurance buying app, something on the order of $20 billion in car loans is headed toward default and most of this Everest of debt presses down on the shoulders of people in the 18-39 age bracket.

Jerry says four out of ten Gen Z car "owners" – in air fingers quotes to reflect the fact that you're not an owner when you're making payments on a thing that can be taken away from you if you stop making those payments – are paying 15 percent of their after-tax income on car payments.