A new ConsumerAffairs analysis of more than 38,000 vehicle owners seeking to refinance found that nine of the ten most car-payment-burdened states in the country are in the South. Mississippi ranked first, where refinancers report spending nearly 17 percent of their income on car payments. The study, done with Auto Approve, weighed payment burden, median APR, and loan length, not just the size of the monthly bill.
That matters here on the Suncoast, where incomes vary widely from Siesta Key to North Port and a lot of neighbors are retirees on fixed incomes. A payment that felt manageable two years ago can quietly become the tightest line in the budget. ConsumerAffairs spokesperson Jailyn Rodriguez says it does not only come down to the number people are paying, since the same payment takes a bigger bite out of a smaller income.
The practical takeaway is simple. If your credit has improved or interest rates have dropped since you bought your car, refinancing might be worth exploring. Selling, trading down, or adjusting the budget are also options. Just be careful about extending your loan term to lower the payment, since that can mean paying more interest overall. Have you ever refinanced a car loan? Tell us how it worked out in the comments.
