This North Texas suburb has some of the most increasing auto loan debt in US, study says

One North Texas suburb has been listed as one of the top cities where auto loan debt is increasing the most. The list, compiled with data from WalletHub — a platform that helps consumers manage their finances by sharing free resources and tools — features 12 Texas cities in total, including two within the top 20.

The list was compiled through a comparison of 100 of the largest cities in the nation, where WalletHub was able to gather a data set across two key proportions. These include change in auto loan debt and average auto loan balance and monthly payment. Each city was then scored on a 100-point scale.

Here’s the North Texas suburb that came in second overall.

Irving ranks no. 2

Irving took the number two spot on the list, with the 23rd-highest average auto loan balance in the country, at $20,932. The city also has an average monthly auto loan payment of $499, placing it at the 24th-highest in the U.S. Irving residents increased their average loan balance by 3.2 percent from Q4 2024 to Q1 2025, making it the second-largest increase in the study.

Although the city ranks among the top cities in the studyfor the share of people in financial distress, residents have been able to manage their debt. Irving residents rank in the mid-range for credit card debt balances and debt delinquency, according to WalletHub.

Here are the 11 other Texas cities with increasing auto loan debt.

With interest rates increasing over the last few years, many Americans find themselves with an average interest rate of 6.35 percent for a new car and 11.62 percent for a used car, according to Experian.

Tips for paying off auto loan debt

Escalate your payments

• Try and make payments on your loan whenever you can.
• Consider paying more than your monthly minimum. This reduces the principal faster helping save money.
• Be sure to check with your vendor to make sure you won’t be penalized for paying off the loan early.

Refinance

• Look into refinancing your loan to see if you qualify for a lower interest rate.
• Refinancing can reduce monthly payments or allow the loan to be paid off faster.
• Have good or excellent credit, consider moving debt to a balance transfer.

Set up automatic payments

• Automatic payments prevent late payments.
• Some auto loaners may give discounts for setting up auto pay.

Budget

• Create a monthly expenses budget to organize your finances.
• Try to cut out unnecessary expenses to work towards becoming debt free.

Paris Goodman

Fort Worth Star-Telegram