Would it surprise you to find out that there are millions of Americans who are living way beyond their means?

At least 40 percent of adults in the U.S. don't have enough money to cover an unexpected emergency of $400 and most are living paycheck-to-paycheck without much savings to speak of.

The problem isn't isolated to the United States of course, you can find millions of people worldwide that have driven themselves thousands of dollars into debt, living a lifestyle far beyond what they are capable of managing to pay for.

Too many people are going broke on their endeavor to endlessly impress others and it isn't worth it.

According to the Federal Reserve Bank of New York, the current prevalence of car debt, with an estimated 7+ million Americans being at least 3 months behind on their car payments, has gotten to a point that they haven't seen since delinquencies reportedly peaked back in 2010.

Financial experts say that this could be a trouble sign for the auto industry, too many people are getting cars that they cannot afford to pay for, especially with people who are under 30 years of age. But they aren't sounding the alarm just yet, suggesting that it's too soon to declare that the sky is falling.

The buy now pay later temptation is strong and it's driven millions of people into taking on large amounts of debt that they are struggling to pay. Some have suggested that this car trouble sounds eerily similar to the housing market crash that took place several years ago, is this the next bubble to pop?

In 2017, it's reported that at least 1.8 million vehicles had been repossessed, compared to around 1.9 million that were repossessed back in 2009.

Vehicle prices continue to rise. Back in 2012 it's estimated that more than 50 percent of vehicles were priced at $30k or less, while today it's estimated that only a third are priced at $30k or less. But that doesn't mean that someone is forced with the only option of getting something that's $30k, there are plenty of much cheaper options out there.

Not everyone is convinced that there is nothing to worry about, saying the growing rate of delinquent payments signals the difficulty that many Americans are having in just trying to get by.

Pics:
pixabay

this is not financial advice

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