New data from nonprofit Money Management International (MMI) reveals that more than one in eight clients with an auto loan are currently behind on payments, highlighting a mounting financial strain for U.S. households. The analysis shows that auto loan stress is often accompanied by compounding debt, reduced creditworthiness, and dwindling financial resources.
“More than one in eight MMI clients with an auto loan are already behind, and for many, the car payment isn’t the only crisis,” said Thomas Nitzsche, Vice President of Public Relations at MMI. “The high rate of charged-off credit cards among delinquent auto loan clients indicates these households have been struggling long before seeking help. The sooner someone reaches out, the more we can assist.”
MMI’s 2025 client data offers a window into the financial pressures facing American families as vehicle prices and monthly payments reach record highs. Transportation costs are a critical factor for many households: research from SaverLife, an MMI partner, found that 32% of working families spend at least a quarter of their income on transportation, while 43% report that transportation costs limit their opportunities.
For millions of Americans in non-metropolitan areas with limited public transit, vehicle ownership is essential. Without a reliable car, access to employment, healthcare, and childcare is jeopardized. “Rising costs of car ownership and fuel, combined with limited public transit, create difficult trade-offs,” said Sarah Willis Ertur, Executive Vice President at SaverLife. “Families may deplete savings, take on debt, or even decline job opportunities because transportation is unaffordable.”
Key findings from MMI’s 2025 data include:
More than half (54%) of MMI credit counseling clients carry an auto loan, with an average balance of $28,000.
12.7% of clients with auto loans are delinquent, with an average balance of $32,500, including $6,750 past due.
Younger clients (ages 21–30) face a higher delinquency rate of 14%.
Renters are more likely to fall behind (16%) than homeowners (9%).
Lower-income clients (earning under $50,000 annually) show a 16% delinquency rate versus 8% for those earning over $150,000.
Delinquent clients have lower average unsecured debt ($23,500 vs. $36,800), lower credit scores (540 vs. 613), lower monthly income ($4,100 vs. $4,900), and larger monthly budget shortfalls (-$380 vs. -$340).
The data also highlights a correlation between auto loan delinquency and prior credit issues: 45% of delinquent clients have at least one charged-off credit card, compared to 17% of clients current on their loans. Charge-offs typically occur after 180 days of non-payment and indicate prolonged financial distress.
MMI offers structured solutions to address these challenges. Its Debt Resolution Plan (DRP) helps clients with charged-off or delinquent debt reduce principal balances and resolve collections at a fraction of the cost of for-profit programs. Early intervention through financial counseling, including Debt Management Plans (DMPs), provides households more options to stabilize both auto loans and other financial obligations.
MMI’s analysis is based on aggregated credit report data from 34,897 households who received counseling in 2025, including 4,463 delinquent auto loan clients. The findings reflect households seeking assistance rather than the general U.S. population. Transportation affordability statistics come from SaverLife’s State of Affordability research series, based on a 2022 survey of 1,212 members.
