Americans are taking out auto loans faster these days than in the past, according to a survey released by a Texas based financial services company. Fort Worth based First Command Financial Services Inc., says more Americans are taking out loans even as others work hard to pay down their existing loans.
43% of the consumers surveyed report taking out loans in the past year and 14% say they have financed or refinanced their cars in the same period, a slight increase from a year ago. Credit cards at 18% are the preferred loan methods followed by auto loan, retail credit cards 11%, mortgages 8%, bank cards 7% and student loans 6% while home equity loans and consumer finance loan follow in that order. This does not appear to affect only those with excellent credit either as borrowers with bad credit seem to be getting auto loans as well.
These are increases compared to last year and experts believe the trend will continue or get better as the economy improves. First Command’s CEO Scott Spiker says the “rise in borrowing appears to be an unexpected turn in what had appeared to be a relatively straight road toward debt reduction.”
According to Scot Spiker, the trend in the recent past had been moving towards cutting debts as consumers focus on reducing debt burden but that appears to be changing.