Upsidedown car loan and debt consolidation questions
BanHammer™
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From: Wagonmafia Propaganda Lieutenant
Car Info: 2014 Forester XT
when you work with a collections agency, and you negotiate a settlement less then the full amount, that gets labeled on the account on the reports. I have a few that show "paid, not full amount" or something along those terms on the ones that I worked with the collections agency on.
the people that say that there is nothing negative from the counciling services are the services themselves, I am still interested in how they make money as they say they are all non-profit.
they have to be getting kickbacks from the credit companies or the collection agency at least.
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From: Funtown
Car Info: A limousine with a chauffer
hmm.. there was a time I was looking into using debt consolidation a few years ago, and everything I read up form it was that it still shows negative points on your credit since it was "negotiated down" payment and not fully what you owe.
when you work with a collections agency, and you negotiate a settlement less then the full amount, that gets labeled on the account on the reports. I have a few that show "paid, not full amount" or something along those terms on the ones that I worked with the collections agency on.
the people that say that there is nothing negative from the counciling services are the services themselves, I am still interested in how they make money as they say they are all non-profit.
they have to be getting kickbacks from the credit companies or the collection agency at least.
when you work with a collections agency, and you negotiate a settlement less then the full amount, that gets labeled on the account on the reports. I have a few that show "paid, not full amount" or something along those terms on the ones that I worked with the collections agency on.
the people that say that there is nothing negative from the counciling services are the services themselves, I am still interested in how they make money as they say they are all non-profit.
they have to be getting kickbacks from the credit companies or the collection agency at least.
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From: Front pleated TWill pants...
Car Info: 2004 PSM WRX
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.
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.
#1 is pretty much out of the question, her credit is terrible.
#2 is definitely a possibility (she has a relative that works at a dealer).
#3 I think she's tried, and it would cost a few thousand to refinance, and only save less than $200/month.
#4 is sounding like the best option, except she doesn't have money saved up for another car.
Last edited by T-Will; May 19, 2008 at 10:23 AM.
BanHammer™
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From: Wagonmafia Propaganda Lieutenant
Car Info: 2014 Forester XT
it might just have been the ones I was looking into were shady or something. I didn't go that route and just negotiated with the creditors myself.
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From: Front pleated TWill pants...
Car Info: 2004 PSM WRX
Churro Aficionado
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From: IG - @thomas.teammoist
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From: trunk monkey
Car Info: 92 Paseo with spinaz, 2011 tooth white wrx
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From: Funtown
Car Info: A limousine with a chauffer
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From: trunk monkey
Car Info: 92 Paseo with spinaz, 2011 tooth white wrx
Thread Starter
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From: Front pleated TWill pants...
Car Info: 2004 PSM WRX
I have a few pics, but they aren't very flattering, and I don't want to spread her pics around teh internets. But she's a regular gym-goer, so she's in great shape.
Besides, you think I'd actually be friends with fatties?
On a side note, I noticed SIKMACH at the movies last night...
