Americans have about $1.7 trillion in auto loan debt, with an average balance of nearly $14,000 per household. With interest rates rising dramatically over recent years, these loans are getting more expensive, too.
Tips for paying off your auto loan debt from WalletHub, a personal finance website, are:
- Accelerate your payments: Consider making extra payments on your auto loan whenever possible. Paying more than the minimum amount each month reduces the principal faster, ultimately saving you money on interest and shortening the overall repayment period. Check to make sure the lender won’t penalize you for paying off the loan early.
- Refinance for better terms: Explore the possibility of refinancing your auto loan to see if you qualify for a lower interest rate or more favorable terms. Refinancing can possibly reduce your monthly payments or allow you to pay off the loan more quickly.
- Set up automatic payments: Setting up automatic payments is a wise move with any loan, as it prevents you from being late as long as you have sufficient funds in your bank account. Some auto lenders may even give you a discount for setting up autopay.
- Budget carefully: Taking the time to create a monthly budget will help you organize your finances and put as much money as possible toward paying off your loan. Try to cut out as much unnecessary spending as you can until you’re debt free.
- Increase your income: You’ll have more money to put toward paying off your auto loan if you work extra hours, get a part-time side job, or boost your income in another way.
WalletHub did an analysis of cities where auto loan debt is increasing the most and those where it’s rising less quickly.
Cities where auto loan debt is increasing the most
1.Winstom-Salem, N.C.
2. Scottsdale, Ariz.
3. Norfolk, Va.
4. Irving, Calif.
5. Portland, Ore.
6. North Las Vegas, Nev.
7. Oakland, Calif.
8. Boise, Idaho
9. Chula Vista, Calif.
10. Fremont, Calif.
Cities where auto loan debt is increasing the least
91.San Francisco, Calif.
92. Philadelphia, Pa.
93. Tucson, Ariz.
94. New Orleans, La.
95. Detroit, Mich.
96. Seattle, Wash.
97. Lincoln, Neb.
98. St. Louis, Mo.
99. San Jose, Calif.
100. Stockton, Calif.
Details on cities where auto loan debt is increasing the most
Winston-Salem, N.C.
Winston-Salem residents increased their average auto loan balance by over 3.1 percent between the fourth quarter of 2025 and the first quarter of 2026, the second-largest increase in the country in the analysis. This brought the average auto loan balance in the city to $19,239 and the average monthly payment to $475.
Unfortunately, people in Winston-Salem might not be very well-equipped to deal with this large increase in auto loan debt, said Chip Lupo, WalletHub analyst. The city has high debt delinquency rates. However, despite rising auto loan debt, the city’s low financial distress, another factor in the WalletHub analysis suggests most residents can still keep up with payments.
Scottsdale, Ariz.
Scottsdale ranks second, and it has the highest average auto loan balance and monthly payment in the country, according to the WalletHub analysis, at $26,284 and $655, respectively. Scottsdale residents also increased their average auto loan balance by over 1.5 percent between the fourth quarter of 2025 and first quarter 2026, the ninth-largest increase.
The good news, though, Lupo said, is that Scottsdale residents seem to be able to manage their high debt load for now. The city has one of the lowest debt delinquency rates in the country, and relatively few people in financial distress.
Norfolk, Va.
Norfolk experienced the sharpest increase in average auto loan balances in the country between the fourth quarter of 2025 and the first quarter of 2026, rising by nearly 3.2 percent. As a result, the city’s average auto loan balance rose to $18,421, with monthly payments averaging $424.
People in Norfolk also have high debt delinquency rates, ranking 16th overall. However, the city’s rising auto loan debt isn’t overly concerning, he said, since residents still rank among the least financially distressed in the country.
