The Urban Institute reports average monthly auto loan obligations at a record $716 and average student loan obligations at $316, which could mean some people pay more than $1,000 a month. About 6% of adults hold both auto and student debt, and the share of adults with auto loans fell from 31% in 2019 to 28% in 2026 even as payments rose. A separate Century Foundation and Protect Borrowers study found inflation-adjusted monthly debt payments rose 14.8% since the end of 2022, while real household income grew just 1.7%. Required payments now absorb about 10% of after-tax income for borrowers, up from 8.9%, and car and credit card payments take about 17% of take-home income for lower-income workers versus 7% for higher-income ones. The figures are estimates from credit records and neighborhood income data, not individual household budgets.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Americans Are Paying Record Amounts On Car Loans and Student Debt . For Some , it More Than $1 , 000 a Month .
Read the original on ibtimes.com ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 763.31 |
| Change that session | -1.10% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- How to spend with purpose this holiday season
Bain & Co projects holiday retail sales in 2026 to approach $1 trillion, with the typical American household expected to spend about $900 on gifts, decorations and food. Mastercard forecasts the strongest holiday retail growth in four years, yet 77% of Americans plan to change their shopping habits due to rising prices, and 35% feel less financially stable than a year ago. Many consumers are still paying off last year's holiday debt, as more than one-third took on holiday credit card debt in 2025, averaging about $1,223 per person according to Capwolf.com. The article advises setting a holiday budget by category, tracking spending, and focusing on low-cost ways to give, such as visiting seniors, writing handwritten letters or supporting a family in need.
- If you think youre middle clas youre probably wrong . Half of Americans are treading water : How to come up for air
According to Pew Research Center's analysis of government data, roughly 49% of Americans do not fall into the middle-income category, and the share of middle-class households fell from about 61% in 1971 to 51%. Pew defines middle class as household income between two-thirds and double the U.S. median; with the current median of $87,460, that range is about $57,723 to $174,920. A National Foundation for Credit Counseling survey found 53% of adults feel they cannot make financial progress and 48% say they are constantly treading water. Total U.S. consumer debt reached $18.8 trillion in the second quarter of 2026, including $1.26 trillion in credit card balances and $1.71 trillion in auto loans, while the share of families with a debt-to-income ratio above 40% rose from 6.5% to 8.6%. The article advises tracking spending and comparing insurance quotes, noting the average American spends about $2,441 a year on full-coverage auto insurance.
- Iran war , oil prices , and impact on US consumers
More than seven months into the U.S. war with Iran, higher fuel prices are making driving and flying more expensive and adding to the cost of some goods as the midterm elections approach. Mark Zandi, chief economist at Moody's Analytics, estimates the war has cost the average U.S. household almost $2,000, including $1,100 in higher energy prices, $540 in higher interest rates and $360 in military costs. The national average for regular gasoline was $4.33 a gallon, 45% above its prewar level, while diesel rose 68% to $6.33. Airfares were about 22% higher in September than a year earlier, and airlines have raised fares and trimmed schedules, with United pulling some December flights. The USDA now expects grocery prices to rise 2.4% this year, up from its earlier forecast of 1.7%, though retailers may be absorbing some increases so far.
- Electric rate hikes could be delayed 2 years with new Xcel Energy proposal
Xcel Energy, Minnesota's largest electric utility, proposes freezing its electricity rates for two years and postponing any rate increase requests until at least November 2028. In exchange, it wants regulators' permission to use federal tax credits from five planned battery storage projects sooner than expected. The company says the plan would still allow it to invest almost $4.5 billion in the state's electric system over the next two years. The proposal comes as customers complain about rising utility costs following a 5.8% increase over two years approved in June, which drew strong opposition. Attorney General Keith Ellison and consumer advocates asked regulators to reconsider, but the Public Utilities Commission declined and instead launched a statewide investigation into the affordability of electric and natural gas service.
- September Inflation Came In at 3 . 9 %, Helping to Set Social Security 2027 Cost - of - Living Adjustment ( COLA )
The CPI-W rose 3.9% in September from a year earlier, its second-largest annual increase this year after May’s 4.4%, which sets the basis for Social Security’s 3.6% cost-of-living adjustment (COLA) for 2027, the fifth largest in 35 years. Social Security uses the CPI-W rather than the CPI-U, which rose 3.7%, because it focuses on hourly wage earners and clerical workers, who make up about 30% of the U.S. population. Energy prices surged amid the Middle East conflict and the closure of the Strait of Hormuz, with gasoline up 34.2% and fuel oil up 74.2% year over year. The COLA is based on the third-quarter CPI-W average, which was 3.62% higher than in 2025, and will take effect in January. The adjustment likely won’t fully offset current inflation pressures.
- 6 Ways Social Security Will Change Forever in 2027 . Are You Ready ?
On October 14, the SSA announced a 3.6% cost-of-living adjustment (COLA) for 2027, affecting about 76 million Americans, with the average retired worker gaining about $75 a month. A raise this large could drain the OASI trust fund's reserves faster than forecast, and once they run out, benefit cuts of up to 22% may be needed. For high earners, the payroll tax cap rises $7,800 to $192,300, which could mean an extra $483.60 a year if employed or $967.20 if self-employed. The maximum monthly payout at full retirement age climbs $36 to $4,188, while early filers can earn $24,480 a year ($2,040 a month) before the earnings test withholds benefits.
Related markets
Latest news
- One of this year's most important relationships in global financial markets is falling apart
One of the most important relationships in global markets has started to unravel over the past couple of weeks. Investors are scrambling to work out what it could mean for the economy and their portfolios.
- 2 High-Flying Dividend Stocks to Buy and Hold for a Decade
The article argues healthcare is rebounding in 2026, with Merck (MRK) shares up 39% and AbbVie (ABBV) up 24% year to date, versus about 12% for the S&P 500. Merck's second-quarter revenue rose 5% to $16.6 billion, beating estimates, with Keytruda sales of $8.4 billion, though Keytruda may lose patent exclusivity by 2028. AbbVie's second-quarter revenue grew 10.2% to nearly $17 billion and adjusted EPS rose 22.9% to $3.65, driven by Skyrizi and Rinvoq sales growing about 24%. AbbVie is on a streak of 54 consecutive annual dividend increases, including its time as part of Abbott Laboratories, qualifying it as a Dividend King. The author concludes both are attractive long-term holdings based on financial results, pipelines, and dividends.
- Nvidia (NVDA) Stock Price Lags Massive Earnings Growth—A Compelling Value Opportunity
Munro Partners' Munro Global Growth Fund posted a -12.6% net return in Q3 2026, trailing the MAET.ASX return of -13.8%, with long holdings the main detractors. The fund's letter named NVIDIA (NASDAQ:NVDA) its largest contributor, citing strong earnings growth and guidance for at least 70% revenue growth next fiscal year, versus consensus of 45%. Nvidia reported quarterly revenue of USD96.2bn in August, up 106% year on year, and management said growth would have been closer to 100% without supply constraints. As of October 12, 2026, NVDA closed at $214.13, down 4.23% over the past month and up 19.23% over the past year, with a $5.16 trillion market cap and a 52-week range of $164.27 to $243.37. The fund says demand for semiconductors and AI remains strong, creating a constructive setup as capex and political fears are now priced in.
- Better Artificial Intelligence Stock for 2026: C3.ai vs. SentinelOne
The article compares C3.ai, which sells enterprise AI applications, with SentinelOne, which provides AI-powered autonomous cybersecurity. In fiscal 2026 (ended April 30), C3.ai's revenue was nearly $250.3 million, down 35.7%, with a net loss of $470.4 million and negative free cash flow of $190.7 million. SentinelOne's fiscal 2026 (ended January 31) revenue reached $1.0 billion, up 21.9%, with a net loss of $450.7 million and free cash flow of about $75.9 million, though stock-based compensation equaled roughly 388.4% of operating cash flow. The article cites C3.ai's restructuring plan from February 2026 and long government sales cycles as risks, and SentinelOne's competition from larger vendors and reliance on Amazon hosting. It says SentinelOne trades at a lower valuation relative to sales, while C3.ai has no future earnings estimates.
- Salazar Resources to Begin Drilling the Yumi Gold-Silver Veins at Tarqui, with Porphyry Drilling Planned at Monja, Ecuador
Salazar Resources closed a $3,500,000 non-brokered private placement announced on October 8, 2026, and outlined its exploration plan. Phase 1 is about 1,500 metres of drilling in five holes at the Yumi gold-silver veins on its 100%-owned Tarqui project, with drilling expected to begin in late October 2026, and the veins have not previously been drilled. Selective rock-chip samples returned 105 g/t Au and 1,038 g/t Ag, and historical BHP holes intersected porphyry-style mineralization nearby, which the company interprets as lying on the periphery of a porphyry center not yet located. Phase 2 contemplates up to about 3,500 metres of drilling in four holes at the 100%-owned Monja copper-gold porphyry target from the first quarter of 2027, subject to surface access and permits. A soil survey of about 895 samples is also planned at Quimi, part of the Tarqui-Quimi project.
- Musk: AI’s Hard Part Is “Scaling Power”: 3 Stocks Uniquely Suited to Win This New Bottleneck Trade
Microsoft said it will scale its Maia chips to multi-gigawatt deployments starting next calendar year, and Elon Musk said scaling power is the hard part of AI. The article argues power is an input that chip and app companies cannot copy quickly, which favors Vistra (VST), Constellation Energy (CEG) and GE Vernova (GEV). Vistra has lost nearly a fifth of its value over the past year even though its adjusted EBITDA rose to $5.91 billion, while Constellation's normalized EPS is expected to reach $13.29 in fiscal 2027. GE Vernova's revenue is expected to reach $60.7 billion by fiscal 2028, and Jefferies has a $298 price target on Vistra. The article warns that all three stocks could move with the mood around AI, regardless of their results.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.