America’s Middle Class Faces New Crisis

Car repossessions are growing in the United States which is yet another major sign of a crumbling economy under President Biden and his administration.

According to Fox, a larger than expected number of Americans, predominantly in the middle class, are now falling behind on their car payments. This is likely due to combination of President Biden’s inflation as well as higher than expected car prices due to issues in the supply chain and economy.

In January alone, the number of Americans who were behind on their car payments by at least 60 days increased by 2% overall when compared to December. What’s worse is that the number of Americans who were behind by 60 days was 20.4% higher when compared to exactly one year ago!

Additionally, the percentage of people who are facing severe delinquencies is the highest it has been since 2006.

Loan defaults increased by 33.5% when compared to a year ago.

Edmunds director of insights Ivan Drury explained, “With new car prices as high as they are, it’s getting more and more difficult for most Americans to stomach these payments. It just becomes something where even though it’s affordable for you today, is it going to hold in the future? That’s where we’re seeing the repossessions come through.”