A new study found that the state of Texas experienced one of the highest increases in auto loan debt in the country.
The report from personal finance company WalletHub, titled “States Where Auto Loan Debt Is Increasing the Most,” ranked Texas third in the U.S. when it came to vehicular repayment growth.
The Lone Star State earned its high ranking on account of its 0.92% auto loan balance increase for Texas residents between Q3 2023 and Q4 2023, the eighth-largest debt growth during that time. That increase reportedly shot up Texas’ average auto loan balance to just under $23,000, a figure that ranks as the second-most average debt nationwide.
According to the study, the vehicular loan situation in Texas falls in line with other debt trends that the state is experiencing, including having one of the highest average household credit card debts in the U.S.
Other states to join Texas among the most debt-burdened for automobiles include top-ranked Wyoming, South Dakota, Delaware, Minnesota and North Dakota.
On the flip side, the areas that have minimized their loans were Rhode Island, Missouri, Utah, Montana, Connecticut and Michigan.
Amidst its findings, WalletHub provided a number of tips for individuals who are currently paying off auto debt, including making extra payments when possible, exploring refinance options, setting up automatic payments, budgeting carefully and finding means of boosting income.