Not mentioned in that article are the huge number of loans from the last year or two which had borrowers with new loans which started off many thousands under water due to "market adjustment" price bumps. I have to agree with @CreditCuriosity, 2023 and possibly 2024 is going to be fugly.
Not to mention people living way above their means and purchasing cars tha they have no business getting. This is my opinion. If you show a good credit score because you cleaned up your records, people tend to fall into the same trap and these companies only look out for their bottom line. Stay strong my fellow Ficoers.
Starting Score: 544
@Jnbmom It just floors me everytime I read someone on this forum ask if their credit is good enough for a 200000 dollar car. Well! maybe 140000.
Most definitely trending upwards. Hope this helps as this seemed to be the most current info I could find.
November 2022 Year-Over-Year Highlights
- Bankruptcy filings including all chapters totaled 31,178, a 6% increase from the November 2021 total of 29,335.
- Individual filings increased 6%, totaling 29,330 compared to the 27,749 filed in November 2021
I completely agree with you on the during the pandemic when such a large portion of the country was out of work bankruptcy situation getting worse before it'll get better. I consistently wonder how these people got loans during the pandemic when such a large portion of the country was out of work.
I get that there were probably a lot of people who thought their jobs were safe but you wouldn't have caught me near a bank applying for anything during the pandemic - and I'm a nurse. I would think with such a high unemployment rate at the time, that Banks would have been looking at sectors where people were more likely to lose their jobs before lending out any money but I also know that Banks sometimes loosen those prerequisites when business is bad. Just a bad situation all the way around.
@MarkintheHV wrote:I was shocked to read in another article (same subject) at the percentage of people that have car payments >$1k a month.......that is insane
I agree; back when I was working for one of the luxury German car manufacturers in the late 1990s I was stunned to see seven year loans with payments over $1,000 per month. Fast forward 25 years and I just signed up for my most expensive monthly note ever (and I've had car loans off and on since 1976); prior to October this year my most expensive payment was about $500 per month, now I have a loan for roughly 70% more than that. Unsaid is, the only reason why I signed up for the loan instead of paying cash for the vehicle was I managed to get financing at 2.49% for 48 months. What concerns me is the number of folks I know who finance vehicles worth their annual income or more; how is that sustainable? Live with Mom and Dad for the next decade?