i voluntarily repo'd my car back in 2005, i owe about 7,000 dollars...now that's alot of money to give away, for something i don't have anymore. i'm trying to fix my credit, should i attempt to pay them off or forget about it? i called them and they wanted me to pay the full 7,000 at once and they don't offer any payment plans...what should i do?
2007-09-18 04:20:11 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
what's the purpose of paying it off, if my credit is already jacked up because of this...i just don't see the logic, my credit is jacked up reguardless if i pay or not
2007-09-18 04:37:15 · update #1
Auto finance is what I do for a living and repaying the debt will not remove it from your credit.
They don't want to agree to a payment plan because you have already screwed them once on a payment plan.
You own enough money that they can take you to court and get a judgment, at that point they attach your bank accounts, garnish your wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.
All of this activity will also show on your credit report making it very hard to get any other types of loans without making massive down payments, paying huge fees and State maximum interest rates.
Your best bet would be to raise as much cash as you can and make them a offer.
Additional details.
And whose fault is that?
2007-09-18 04:42:33 · answer #1 · answered by ? 7 · 0⤊ 0⤋
You definitely want to resolve that. It's enough money that they will take you to court, get a judgment, garnish your wages, attach your bank account and lein your property. All of which will ding your credit even more.
If you have a lump sum, you might be able to negotiate settlement for a leser amount, maybe 75%. Don't count on any payment plan that strings out the debt for several years.
2007-09-18 11:34:54 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
For that large of a dollar amount they will likely want to get their money. You need to attempt to negotiate a settlment as soon as possible. They will not want to wait too long to sue in for the balance because the SOL will expire...for the SOL in your state please see this site:
http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml
This loan would fall under a written contract.
Start the settlement offer low (like 25%) go up from there. If they don't want to work with you at all, threaten bankruptcy (this doesn't always work, but if they firmly believe that you can't pay and will file they may be more likely to work with you).
Don't expect this to be stettled immediately but keep working at it. If you ignore their calls and pretend the debt doesn't exist they are much more likely to take you to court. If they don't believe they are going to have to take you to court, they won't.
2007-09-18 11:44:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Go directly to the finance provider.
Offer them 50 cents on the dollar and a payment plan....50% sure beats the hell out of nothing.
Your credit is still going to indicate a repo regardless what you do.
2007-09-18 11:29:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
number one you were the one who took out the loan for which you agreed to pay on... I'm sure you know the way a repo work is the bank auctions off the car for as much as they can get and then you owe what is left on the loan amount unpaid.... so if you owed 12 grand and the bank only got 7 for it at auction well you still owe 5 grand... damn right you need to pay it back it's not like the bank or lender should lose out on the money they paid the dealer for that car it's your fault you failed to make the payments or couldn't you need to pay on what is left
oh and ps you aren't given the money away you are paying on a loan amount you agreed to
2007-09-18 11:28:52 · answer #5 · answered by Anonymous · 1⤊ 1⤋