New MMI Data Reveals Growing Auto Loan Stress: $32,500 in Auto Debt, Falling Behind, and Running Out of Options
“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.” - Thomas Nitzsche, VP of Public Relations at MMI
STAFFORD, Texas, March 25, 2026 (GLOBE NEWSWIRE) -- New data from nonprofit Money Management International (MMI) shows that more than one in eight clients with an auto loan are currently delinquent, and the financial profile of those falling behind reveals a troubling pattern of compounding debt, damaged credit, and diminishing resources.
That stress doesn’t exist in a vacuum: Research from SaverLife, an MMI partner, found that 32% of working families spend a quarter or more of their monthly income on transportation and 43% say their lives are limited because they simply can’t afford adequate transportation.
As vehicle prices and monthly payments reach record highs, MMI’s 2025 client data offers a ground-level view of what auto loan stress looks like when households finally reach out for help.
“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 tells us that these households have been struggling for a long time before asking for help. The sooner someone reaches out, the more we can do.”
MMI serves clients across the full credit spectrum, and auto loans are among the most common financial pain points in initial conversations.
The Hidden Cost of Getting and Staying Mobile
For many American families, a car isn’t a luxury; it’s an economic lifeline.
SaverLife found that nearly 45% of its members have turned down or decided not to apply for jobs due to transportation costs, and 59% don’t use public transit to commute because it would make their trips significantly longer.
For the 46 million Americans in non-metropolitan areas, where public transportation is scarce, going without a car is often simply not an option. That reality makes auto loan delinquency far more than a credit score problem. When a vehicle is at risk, so is employment, healthcare access, and childcare.
“For many households, the rising costs of car ownership and gas, combined with limited access to public transportation, create difficult financial tradeoffs,” said Sarah Willis Ertur, Executive Vice President at SaverLife. “Families may drain savings, take on debt, or even turn down job opportunities simply because the cost of getting to work is too high. In this way, transportation is not just about getting from point A to point B—it can determine whether someone can access economic opportunity at all.”
MMI’s data puts numbers on what happens when households reach a breaking point.
Key Findings from MMI’s 2025 Client Data
• More than half (54%) of all MMI credit counseling clients carry an auto loan, with an average balance of $28,000.
• 12.7% of those clients are currently delinquent on their auto loan, carrying an average balance of $32,500, of which $6,750 is past due.
• Younger clients ages 21–30 show a higher delinquency rate of 14%, compared to the overall average.
• Renters are significantly more likely to be delinquent (16%) than homeowners (9%), reflecting the compounding pressure of housing and transportation costs.
• Lower-income clients (under $50,000 annually) show a 16% delinquency rate - double the 8% rate among clients earning over $150,000.
• Delinquent clients carry lower average unsecured debt ($23,500 vs. $36,800 for current clients), suggesting their borrowing capacity has already been exhausted.
• Delinquent clients have a significantly lower average credit score (540 vs. 613), earn less per month ($4,100 vs. $4,900), and run a larger monthly budget shortfall (-$380 vs. -$340).
When the Car Loan Falls Behind, Everything Else Already Has
Perhaps the starkest finding in MMI’s data is the relationship between auto loan delinquency and charged-off credit card accounts: Among delinquent auto loan clients, 45% have at least one charged-off credit card, compared to just 17% of clients who are current on their auto loans.
A charge-off signals that a creditor has written a debt off as uncollectible, typically after 180 days of non-payment, a severe credit event that reflects a household already in prolonged financial distress.
SaverLife’s research reinforces this picture of cascading financial strain: When members face unexpected vehicle costs - a blown tire, an accident, a repair - they frequently report draining emergency savings or turning to credit cards just to stay mobile.
This pattern suggests that by the time many clients seek help for their auto loan, they are managing a broader financial collapse, not a single missed payment. The car may be the most urgent crisis, but it is rarely the only one.
A Path Forward: Debt Repayment Plans and Early Intervention
For clients in 34 states with charged-off or delinquent unsecured debt, MMI’s Debt Resolution Plan (DRP) offers a structured path to recovery. A nonprofit debt settlement solution, the DRP reduces the principal balance and resolves collection debt at a fraction of the cost of for-profit companies, giving households more room to stabilize their auto loans and other obligations.
MMI’s data underscores the value of financial counseling as an early intervention. Clients who reach out before a charge-off occurs have more options, including MMI’s Debt Management Plan (DMP), and more time to course-correct.
Waiting until the auto loan is in default and credit cards are written off significantly narrows the path to recovery.
Methodology
MMI’s analysis is based on aggregated credit report data of 34,897 households with an auto loan who received financial counseling from MMI nationwide in 2025, 4,463 of whom were delinquent at the time of intake. Findings are representative of individuals seeking assistance, not the general U.S. population.
Transportation affordability data cited from SaverLife’s State of Affordability research series, conducted in collaboration with the FINRA Foundation, based on a survey of 1,212 SaverLife member panelists fielded August–September 2022.
About MMI
For over 65 years, Money Management International (MMI) has been at the forefront of financial health solutions, helping individuals and families break free from debt and build a secure financial future. As a trusted nonprofit leader, MMI is dedicated to transforming how Americans navigate financial challenges by providing expert guidance, innovative programs, and culturally relevant financial education. Recognized by major financial institutions and media outlets, MMI’s award-winning services support long-term financial stability and success. Learn more at MoneyManagement.org.
For reporters looking to interview real people who have overcome debt, MMI supports a network of more than 500 peer advocates in all 50 states who have volunteered to share their experiences with the media. Collectively, these advocates have paid off more than $22 million in debt and now serve as MMI ambassadors. Their stories are featured on MMI’s podcast, Long Story $hort.
Media Contacts
Jackie Callaway, Media Relations, MMI
813.610.8241 | Jackie.Callaway@MoneyManagement.org
SaverLife
Jackie Callaway Money Management International 813.610.8241 Jackie.Callaway@MoneyManagement.org SaverLife comms@saverlife.org
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