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Earlier this month, LendingTree conducted a survey of 100 major US cities to gauge the amount of debt held by each generation, including Gen Z, millennials, Gen X and baby boomers.
According to the survey, 47.5% of Gen Z have auto loans, with the median auto loan debt among these people being $17,402.
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While debt amounts vary by location, below are the top 20 metro areas with the most auto loan debt for Gen Z (lowest to highest). Information on Gen X is also available here.
Phoenix
San Diego
Baton Rouge, Louisiana
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Riverside, California
Los Angeles
Seattle
Miami
Dallas
San Francisco
Houston
El Paso, Texas
Greenville, South Carolina
Cape Coral, Florida
Bakersfield, California
Austin, Texas
Oxnard, California
San Jose, California
Scranton, Pennsylvania
Memphis, Tennessee
McAllen, Texas
How to pay off your car loan faster
Many members of Generation Z, born between 1997 and 2012, are still in the early stages of their careers. Many are out of home and have their own financial obligations, like rent, student loans, and other debt.
If you’re struggling to make your car loan payments or simply want to pay it off faster, here are some options.
Create or adjust a budget. If you don’t have one yet, it’s not too late to create one. If you have a budget, review it and see if you can cut back on your expenses to leave more money for your car payment.
Automate your payments. Assuming you get paid before your loan is due, automating your payments is a great way to keep you on track and avoid late fees. If it fits into your budget, set up extra payments (even small ones) to pay off your debt faster.
Consider refinancing. Depending on your credit score, the term of your current loan, and your interest rate, you may want to consider refinancing. Refinancing could lower your interest rate. It might also lower your monthly payments. But make sure you pay off your debt by making larger payments instead of paying the minimum.
Consider downsizing your car. If your current loan payments are too high, see if you can trade up for a cheaper, more reliable car. Before you do this, calculate the total cost and potential savings.
If you’re in a position to pay off your car loan early, that’s great — just be careful not to get hit with a prepayment penalty for doing so.
If you’re happy with your current monthly payments and your interest rate is reasonable, consider prioritizing your other debts, especially the ones that are impacting your monthly finances the most. Once you’ve dealt with some of those debts, you can always focus on your car loan.
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This article originally appeared on GOBankingRates.com: 20 Cities Where Gen Z Has the Most Auto Loan Debt
