1 in 3 car buyers were upside-down on their trade-in last year. According to the Wall Street Journal's Your Money Matters program, these car buyers actually owed more on their cars than they were worth. When you're "upside-down" on your loan, the balance is greater than the value of your collateral -- and it happens a lot with car loans.
When you stretch out your payments (because you can't afford the car you really want otherwise), you slide down a slippery slope of increasing debt. According to the WSJ program, car loans these days are more likely to last 5 to 7 years -- longer than some people keep their car. For details, listen to the program (MP3 Download).
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