Category: Car payments

I have nothing to give them

I have nothing to give them. I could start making payments, but they wouldn t be much, no more then a $100/month at the very most. Even that would be really hard to for us right now. If I could pay them, I would. But, living expenses come first and right now we are barely doing that. I guess I just figured I would have more time to pull something together. I hear how a lot of people don’t end up with judgements for a few years after you stop paying and here it is only 5-6 months for us and our state has a 6 year sol. So, I figured we would have some time to pull the money together.

One of my former creditors started court proceedings against me for less that $10k. That’s when I decided to do a chapter 7. So, some of these collectors WILL go after you no matter what. As Herlean said below, some are just to mean to work with!!

It is entirely up to the creditor and/or collection agency they hire & instruct. A lot of creditors have gotten much more agressive at collecting the money owed and a lot less “understanding”. Keep us updated. All they can do is sue you and get a judgment. Then they have to go through other things to try to garnish etc. They may put a lien on a home but that just means if you sell it they get their money. One of my former creditors started court proceedings against me for less that $10k. That’s when I decided to do a chapter 7. So, some of these collectors WILL go after you no matter what. As was said below, some are just to mean to work with!!

Is that how they would go about vehicles too? We have two vehicles not paid off and far from it. So, if they took them, by the time the money went to those we have the loans with, their would be nothing left in money except maybe a couple hundred, if that. Also, I don’t work, but my husband does and the credit card company threatening us the card is only in my name. When you say garnishing, can they garnish bank accounts? We don’t have much in our bank accounts, but my husband does have direct deposit(required for his job) into accounts that are in both of our names since I write our bills and need access to signing checks.

If you don’t pay your payments, they repossess your cars. At lest you may try to get a payday loan from one of established websites and pay your bills. If you file chapter 13, they are included in the plan – and the balance you owe is reduced to actual blue book.

What payments? If you are referring to the car payments themselves, those are up to current and have always been. The payments not being made are credit card payments solely. Home and everything else as far as cars and living expense like utilities, etc… are all up to current.

Re: What can we do?

A little more information about the car, please. What is the Kelly Blue Book value? You can find it at www.kbb.com. Not the trade in value, but the seller’s private party value.

1. If the car is worth the same or more than Kelly Blue Book, I’d stick a sign on it and park in a high traffic area and sell it FAST!

2. But….if the car is worth a LOT less than the payoff, I’d try to get an unsecured loan for the difference and then sell the car. For example: if the car is worth $10,000 and she owes $12,000, she would get an unsecured loan for $2,000 or borrow it from someone. A $2,000 debt is a lot less stressful than a $12,000 one with insurance. Then for 3 months I’d walk, take the bus, or hitch rides from friends until I’d put the $500 a month in savings and buy a $1,500 car outright cash, then use the $500 for 4 months to payoff the unsecured loan and be done with the whole thing. I’d recommend a 1994 Honda or Toyota. They are very reliable and usually last 250,000++ miles!

The biggest thing to remember is to NOT bury your head in the sand and ignore the problem. Don’t trade it in and get upside down on another car. You can get out from under this debt fast if you continue to put the money toward the unsecured loan and a savings account for only 7 more months or so. That’s a lot less time than 4 or 5 more years that you had left on the car loan. What a relief it would be not to have that big car payment. After you save up for the used car, then start a car fund and put $100 a month or whatever you can afford into a money market account getting 5% and when you save up enough money again, PAY CASH!!! In 5 years, you will have saved up $7,000. If you can put more than $100 a month it will go faster or you will have more saved. Get your money to work for you by using the bank’s interest to pay you instead of borrowing money and having to pay it back with interest.

I strongly recommend you borrow the book Total Money Makeover by Dave Ramsey from the library. You will learn that if you flash cash you can get a great bargain on a good used car too. Take $100 crisp clean bills with you when you go to look at good used cars.

He changed my way of thinking about money, credit cards, borrowing, and car payments forever! You are young and can change your family’s future by saving, investing, and living within your means now. You have a little one on the way and you need to think about your family’s future and not just the here and now.

It sounds like you are on the right track getting out from under this car you and your fiancĂ© can’t afford. It will free you so that you can concentrate on the wonderful experience of being pregnant!! I have three beautiful children and they are such a blessing. Right now my dh and I are digging our way out of $70,000 worth of debt. When we are debt free, we will truly be free forever!

Good luck and let me know if you have any more questions. I’d be happy to answer or clarify anything!

What can we do?

good afternoon frugal friends…

i have a question:

oldest dd [ today 22 ] bought a brandnew chevrolet cobalt last year. father in law went with her and co-signed. she only had a part time job, was going to college and still living at home. she had car payments of 280$ and insurance of 175.

i would have loved to knock some sense into her noggin… but FIL went with her. and we had no idea until she came home with the car.

in the meantime shortly thereafter she got pregnant. quit college and is now living with BF + his parents.

today is her birthday and she came over and asked how she could get out from under the car payment. i think that is a smart move, since between the 2 of them they have nothing. and they do not need such a big expense to the tune of 500$ a months.

anybody having any good suggestions how to do this, without messing with my inlaws superior credit rating?? she does want a car, just not all the expense. had she spoken about 6 weeks ago, we would have taken over payments and bought the car, but husband went and bought a different car

i will print out all answers and give them to her . she can then choose what to do.

THANK YOU !!!