I was working for a great company .. making the most money I have ever made before. At the age of 20 I was pretty successfull...... getting greedy I decided to buy a 2006 ford escape for 25,000.00 I ended up losing my job and I was out of work for 1 1/2 months. I just now got back to working and I am trying to pay for it. My car payment is 500.00 a month.. I looked into selling it but I dont think anyone would have that amount in cash nor check to purchase it. I tried taking it to a car delaers to see what they could do for me.. and they basically said i am "upside down" and theres nothing they can do. Does any one have any suggestions about what I can do?
2007-10-10 07:24:02 · 5 answers · asked by igotyou888888 3 in Business & Finance ➔ Personal Finance
Other than the answer from bdancer, I would suggest you call the finance company and ask if they can 'defer' a payment. Sometimes they will do this because they would rather have you pay the vehicle in full than default on the loan.
In addition, if you keep the vehicle call your insurance company and make sure you are covered up to the full amount you owe. If you total the vehicle in an accident, you will be personally liable for all money owed to the bank beyond what the insurance company is contracted to pay via your policy.
I would do as bdancer suggests and do your best to sell it. Then don't buy another vehicle on credit. Find an old clunker and get buy until you can pay cash for a sensible car. Work your way up in value. The first car I owned was purchased for $500. A few years later, I traded it in for $700 and added a few thousand to that. I saved and worked my way up. Borrowning money is an excuse to live beyond your means.
This goes double for credit cards. Unless you are buying a home you don't need any credit. You can use a VISA debit card tied to your bank account. Quite litteraly at the age of 20 you need to be in college and worrying about your next test. You are headed down a tough road with all the credit. Get out now while you are still young. Begin saving and by the time you have kids and they enter into college when you are in your late 30's to early 40's you'll be able to pay for it.
Good Luck.
2007-10-10 08:31:10 · answer #1 · answered by sfuller94 3 · 0⤊ 0⤋
Don't refinance. That will only string out the debt and make you more upside down, not to mention all the extra interest. You made a bad decision financing that much car instead of saving and putting a big downpayment.
You can sell the vehicle and come up with the difference to pay off the loan -- probably not easy to come up with the money. Or you can figure out how to make those payments. Consider a second job -- pizza delivery has flexible hours.
2007-10-10 07:40:36 · answer #2 · answered by bdancer222 7 · 1⤊ 0⤋
Try to see if any one would buy it with taking over your monthly payment. Sometimes someone with bad credit and cannot get an auto loan might do it. Just make sure you change the title and the bank you got the loan from is aware of it, and make (in writting) that this person is taking over and it will not effect your credit. (I guess if you are having problem paying, it is pretty much effecting your credit). But make sure you not doing any more damage to your credit. Good luck. Or take up a part time job to make more money and pay it yourself. This actaully should be the better way to get your financial situation as more healthy way to do it.
2007-10-10 07:38:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Have you tried to refinance it with a lower payment?
2007-10-10 07:28:23 · answer #4 · answered by Wisdom Seeker 3 · 0⤊ 2⤋
Why are your payments so high? Refi and get your payments cut in half!!
2007-10-10 07:32:05 · answer #5 · answered by Dnaleri 3 · 0⤊ 3⤋