By Arlenys Tabare
In a report released in early May, the New York Federal Reserve reported that US household debt hit an all-time high in the first quarter of this year; The figure stood at $18.8 billion dollars between January and March.
In the analysis, the entity detailed that the largest debts come from mortgages, credit cards, student and auto loans; The latter alone, according to Fed data, amounted to $1.69 trillion dollars.
Given this, the personal finance company WalletHub recently published a report where it specifies which cities are where auto loan debt continues to rise, based on data from the fourth quarter of 2025 to the first quarter of 2026.
“A significant increase in auto loan debt in a city may indicate that residents are experiencing financial difficulties because they need to take out more loansor that they are responsible because they can access larger loans,” highlights Chip Lupo, WalletHub analyst.
On the list of the cities with the highest indebtedness for car loans is:
- 1. Winston-Salem, North Carolina
- 2. Scottsdale, Arizona
- 3. Norfolk, Virginia
- 4. Irvine, California
- 5. Portland, Oregon
- 6. North Las Vegas, Nevada
- 7. Oakland, California
- 8. Boise, Idaho
- 9. Chula Vista, California
- 10. Fremont, California
“In most of the ten cities with the largest increase in auto debt, this additional debt is a bad sign, since they usually have high default rates and many people who suffer financial difficulties“added Lupo.
The analyst noted that, for example, for residents of Winston-Salem, North Carolina, who top the list, the increase in their average auto loan balance was more than 3.1% between the fourth quarter of 2025 and the first quarter of 2026, the second largest increase in the country. “This raised the average auto loan balance in the city to $19,239 and the average monthly payment to $475,” said.
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