Repossessions on the Rise in Amarillo - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Repossessions on the Rise in Amarillo

Amarillo residents are used to being in an economic bubble, but things could be changing. These initial changes could ben indication of bigger, more serious things to come.

Whether it's buying a new car, or a new couch, one thing is influencing the purchases of Amarillo residents... Fuel economy. Some people are having such a hard time paying for their vehicles that they're turning in their keys. Amarillo National Bank Senior Vice President John T. McElyea says "some of the things we've seen are people saying look I just can't possibly pay for this anymore and they call us to come and pick it up and take it off their hands. We're seeing this especially with pick ups and SUVs." Brown Automotive General Manager Charles Cooksey agrees. "People can't afford the gas or the payments so they say I'm gonna try neither for a while. There has been an increase in repos." Cars aren't the only thing people can no longer afford.

Scott Taylor owns Taylor Furniture. He says "instead of a situation where they're trying to default and running from creditors, they just call up and say come get it. Alleviate me from this debt." Taylor suspects the rising fuel and food prices are pushing people to the brink. "Traditionally the past few years people have used credit cards for getting them out of financial trouble. Now those days are gone." Taylor says the situation has gotten increasingly worse. Last year he had more than 200 customers make their monthly payments with debit cards. Now he has just two dozen, which he says just goes to show cash flow is becoming a problem.

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