Whatever you decide to do, get a piece of paper and write Pro and Con at the top. Draw a line down the middle dividing the two. Which ever side wins is the decision.
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Whatever you decide to do, get a piece of paper and write Pro and Con at the top. Draw a line down the middle dividing the two. Which ever side wins is the decision.
I can't say that I've heard of anyone ever getting a loan on equity in a car.. That seems like a pretty risky move to make for any bank unless it's some kind of collector car that never gets driven.
Sell the car, save the cash, buy something cheap off one of those lots that will give loans to high risk borrowers, make double payments on it if you can to mitigate the amount of interest that you will be paying, get a secured credit card from your bank and start using it. With the car loan and the card you should be able to build your credit back to reasonable levels within a year.
Don't do thisQuote:
Originally Posted by def90
Yeah, just buy a cheaper car with the cash.
Sounds like his credit is shot.. What's the alternative if he wants to build credit rating? Buying a car with cash does not build credit history even if it's the cheaper way to do it.Quote:
Originally Posted by Wulf202
I had to do this after getting into a similar situation after the housing crash.. Worked out fine for me. Bought a truck at the only place that would finance me, interest rate was crazy but I paid it off early in a year (3 years early) and together with a secured card I built my credit score back to where it was before. Once my rating was back up I dumped the secured card when I was approved for a card with a better interest rate.
Well, it depends on the overall situation. If his debt is a bigger deal than the credit, eliminating debt is the better move. I've actually done the same thing, and it worked out okay for me as well.
Credit matters less, if you have the freedom of reducing debt. In time, he'll rebuild all of this stuff though. We're rooting for you Ducky.
Do what irving has saidQuote:
Originally Posted by def90
selling the car is his choice. Given all the changes it may not be the right time for him to finish the country song.... there's mental health to consider when going thru all this.
A vehicle is a necessity to get to work to pay down the debt. While a depreciating money pit it has value. I have successfully financed a car I owned as I said already. It's a simple collateralized loan. There's also taking a loan against your 401k
The unpaid credit card is the only real credit damage that's been explained and it's correctable. Aside from that if he doesn't pay the card his credit is the same. If he doesn't pay for a car he gets it repod and doesn't go to work.
I know someone who went out and got a car from a shitbag dealership that finances anyone. They got a car that was worth 8k when purchased that is going to cost 14k when done and be worth 5k. Yea it runs fine and it's a reliable ride but they spent the 6k out of pocket to get a positive credit report. Better to do secured credit cards or the like.
Another option, depending on how bleak the situation is, would be to purchase a cheap RV and live in that. My neighbor is losing his house and he is retired and doesn't have much to his name. Someone let him finance an RV for a few grand and he's just going to stay in that at a buddy's property. An RV is a bit of a depreciating money pit on its own (understatement) but it provides a place to live, many places to live, without rent. The dealer up near Longmont just West of I-25 supposedly has a 2002 for $7,000. Again, we don't know the full scope of the situation, but if it's a matter of finding a place to live, or being homeless or something, an RV is another option.
banks do the vehicle equity loans as long as the vehicle is paid off, mine is so it helps a little. I am currently attempting to get a personal loan and then use the repayment of the personal loan as a way to rebuild my credit and also pay off the fucking credit card. I just want to keep this woman out of my life right now and I am will do just about anything to keep it that way. I have a place to stay if needed and will continue to figure this out. The CC fraud team has been contacted and will know a little more on Monday. basically I need about 10,000 from the equity loan which is a strong possiblity. I guess if worse comes to worse i will sell my car, buy a cheaper car and go from there. could be worse right?
Definitely could be worse.