4 ms·

Auto debt has ballooned in recent years. Seems like lots of people are buying more car than they need because it is "only $x more per month". https://www.inves

• jcranmer 5y ago
  Auto debt is kind of a halfway between mortgage debt and personal debt. Like mortgages, you're acquiring a long-lived asset for the debt. However, autos famously have a very steep initial depreciation that makes me suspect that many people with auto loans are underwater--and an underwater auto loan is going to be like credit card debt in that it's buying more than you can afford. I vacillated as to whether or not to include it as a separate category, but ultimately I think it's reasonable to consider them as personal debt insofar as they contribute to a debt epidemic.