I have a friend who is about $9000 upsidedown in her car loan. Her payment is about $600/month and she wants to get out of it and just buy a cheap Honda. She also has some credit card debt.

Is there any way to get out of this car loan without rolling over the $9000? Would debt consolidation be the way to go? Any recommendations here?

 

 

she can try selling her car

 

QFT

If she sells the car she'll still owe the $9000 to the bank (which she doesn't have).

Are there any reputable debt consolidation places that work on car loans too?

 

Debt consolidation is one step away from giving the finger to creditors. How much CC debt does she have?

 

if she sells the car for 9k or more.. then she can use what she makes from selling it to put to the loan. and if she sells it for more than 9, she can use that money tword another car..

 

It's amazing to me to see a post with the correct answer so early in a thread.

 

Also, jesus christ, what is she driving that's already 9k upside down and has a $600 payment?

 

ya really tho.. 600 a month in a lot! when i was paying off my scoobie my min payment was like 181 but i made it an even 200

 

let it begin:

depending on what type of hypothertical insurace your hypothetical friend has and what all it covers... have someone hypothetically steal the car. your friend then would collect and could pay off the loan (might make more dpending on kbb). all hypothetically speaking of course.

i might have a hypothetical friend who hypothetically did something hypothetically similar

 

debt consolidation is one step away from defaulting. It looks the same on the credit report as defaulting.

 

OK lets not advocate insurance fraud here. She made a mistake (I'm not talking ****, I've been in this boat too) and she needs to own up to it.

She can:

1. Sell the car private party and get a personal loan to cover the difference between what she gets and what she owes. Then buy something cheaper to try and keep the payments down. The upside here is that she has complete freedom in the kind of car she buys (in order to keep the payment down), the downside is that personal loans are harder to get and generally have higher interest rates than comparable auto loans.

2. She could trade the car in to a dealer and buy an inexpensive car, rolling the upside down portion in to the new loan. This might be hard though as they'll only finance so much extra on the car (I don't know what the loan-to-value limits are) so she may not be able to do this.

3. Call the lender and see if they can work something out.

4. Default on the loan and have terrible credit for a while. Might not be able to get another car loan in the mean time, so this probably isn't the way to go.

 

Only until the debt is paid off. Once it's paid off, the 'negative' marks go away and your credit is cool.

 

If she is financing the cheap honda then DC is def not the way to go, because you will limit the banks that will loan her money. If you have 9k neg equity you probably can't sell it. I would call her bank and try to reneg owed amount.

 

yea, she's going to have to eat it. No other way to look at it unless she files chapter 7 and even now they are requiring that you pay some money back.