10 states where car loan debt is falling the most

America is one of the most car-dependent countries in the world, leaving its residents with a collective $1.7 trillion in auto debt. That means the average household in the fourth quarter of 2024 had almost $13,800 in auto loan debt, which is just shy of the record.

WalletHub looked at the average change in auto loan debt, the average auto loan balance, and the average monthly payments in all 50 states to find the states where auto debt is decreasing the most.

“From Q3 2024 to Q4 2024, residents of most states either had a less than 1% decrease in their average auto loan balance, or actually had that average increase,” said WalletHub editor Joe Kiernan. “A few states had more dramatic decreases, reaching over 3.5%, indicating that residents in some states may be scaling back due to the impact of rising car prices or realizing that their loan burdens are unsustainable.”

Continue reading to see which states are tackling their auto debt head on.