Important Takeaways:

• Mom, 28, forced to sell her dream car after forking out $40,000 in INTEREST alone over three years – as America’s auto debt spirals to $1.6 TRILLION
• Three years ago, 28-year-old Blaisey Arnold entered a local auto dealership and came away with the keys to an $84,000 Chevy Tahoe.
• Despite paying $1,400 a month in payments totaling more than $50,000, she still owes a balance of $74,000 to her lender – GM Financial.
• Not only did she not make a down payment, she said she traded in a previous car on which she had fallen into negative equity.
• Negative equity occurs when a driver owes more on their car loan than the vehicle is now worth. Sometimes, a dealer or lender can offer to roll the balance of an existing auto loan onto a new one, making it more expensive.
• ‘Honestly, it blows my mind that I have paid $50,000 into this car and only paid off $10,000,’ Arnold said.
• ‘The dealer pretty much told me they can get me out the door with the car within an hour. He didn’t act like it was something I should be concerned about,’ she said.
• Auto loans are becoming a major source of strain for car-obsessed Americans and leaving an increasing number with runaway debt.
• Last year, auto debt in the US reached a record-high $1.6 trillion, which comes out to an average of more than $13,000 per household.

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