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The Indicator from Planet Money · July 13, 2026 · 9m

Young people aren't paying their car loans. We can help.

Sheila Bair

One in 20 car loans to young people are now in serious delinquency—the highest rate since the 2008 financial crisis. Former FDIC chair Sheila Bair joins the show to answer young listeners' questions about car buying, debt, and avoiding financial traps. The episode explores why young people are struggling with auto loans and what they should know before borrowing.

This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.

Highlights

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Car loan delinquency crisis among young people
One in 20 car loans made to young people are now in serious delinquency—the highest rate since the 2008 financial crisis.
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Editorial

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Financial literacy gaps driving debt avoidance
Young people may not understand the consequences of missing car payments or may lack strategies for managing debt they have already taken on.
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Regulatory expert pivoting to consumer education
A former FDIC chair is now writing children's and young adult books on financial decision-making rather than working from within regulatory systems.
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Young people buying cars they cannot afford or maintain
Delinquency patterns suggest young borrowers may be purchasing vehicles at price points that consume too much of their income or lack emergency savings to handle unexpected costs.
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References

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How Not to Lose a Million Dollars: A Young Person's Guide to Avoiding the Tricks and Traps of Our Financial System — Sheila Bair — Bair's guide to financial decision-making for young adults, addressing debt, loans, and avoiding financial mistakes

Misc

✧Highest car loan delinquency rate for young people since the 2008 financial crisis
✧Former FDIC chair writing accessible financial guides for young adults
✧Episode framed as answering listener questions directly—practical financial literacy approach
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