Car Loan Debt

The speaker has a car loan with a significant outstanding balance ($20,281.54 on a car that was originally $16,000) and a high interest rate (29%), indicating she is in a financially precarious situation regarding her vehicle.

Alice owes $5,000 to a friend for a car purchased in 2022. The car, a Nissan Versa Note, has a low market value and has been experiencing mechanical issues since it was bought 'as is'. The loan has an unknown interest rate, and the car's unreliability poses a risk to Alice's commute to work.

The guest attempted to repair their car themselves but ultimately traded it in with the alternator issue, leading to rolling over negative equity into a new car loan.

Auto loans represent the third-largest debt category in the US, totaling approximately $1.5 trillion.