 TITLE: U.S. Auto Debt Grows to Record High Despite Pandemic CONTENT: Average Consumer Auto Debt Balances Grow Amid Pandemic\n------------------------------------------------------\nAlong with overall debt, consumers saw little growth in their average balances, with the amount they owe increasing by $634—3%—since 2019, according to Experian data. That's just 1 percentage point more than the rate at which consumer balances grew in 2019, again reinforcing that consumer auto debt didn't undergo drastic change during the pandemic.\nSource: Experian\nWhen compared with the significant changes to other debt balances—student loan balances grew by 9% between 2019 and Q3 2020 and credit card debt decreased by 14% during that time—auto debt's consistent annual growth pattern may have more complexity than appears.\n\"COVID-19 caused some disruptions in the market that defied ongoing trends that we had seen,\" says Melinda Zabritski, Experian's senior director of automotive financial solutions. \"Perhaps one of the most unexpected trends was that delinquencies didn't rise significantly during the pandemic, though we know that a variety of accommodation programs, along with stimulus packages, likely helped keep them down.\"\nAs part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the federal government suspended student loan repayment and issued guidance that directed mortgage lenders to allow forbearance for those impacted by the pandemic.\nThese measures aimed to offer relief to consumers in need—and while they appear to have been successful (so far), the efforts also translated to rising balances as fewer accounts are being paid down. Take for example the case of student loans, which increased by 12% due in large part to continued borrowing coupled with non-payment of existing debt.\nIn the case of auto debt, however, there was no clear guidance from the federal government. As a result, consumers in need of financial relief had to find it on their own by way of refinancing, selling their car or taking other action. Some had the option of negotiating with their lenders, many of which announced willingness to work with borrowers in need at the onset of the pandemic. While it's unclear how many lenders made special repayment arrangements for borrowers financially impacted by the pandemic, it's clear whatever actions they took did not change the growth pattern of auto debt. END