Question
Need financial advice (loans) as I've gotten myself in a pickle?
Ok here's the worst thing: I defaulted on a car loan. I already had bad credit. Capital One financed me for a 2004 jeep with the initial cost being around 18,000. The first year went by fine, no late payments. Second year got sticky had some late payments, then later on in the year got 4 months behind when I left my ex. They took the car back, and then sold it for 6,000 at an auction. I owed 12,000 when it was sold to one of the credit company things, where they charged me 1,000 a month for each month made without payment. I have been paying now since April 300 a month. Bad thing is, my interest rate take 220 of that payment, and I now owe 16,000.00 on a car I don't have. They have offered me a settlement of 6,565.00 that I would love to take, I don't have any rich uncles that I could borrow from, so I'd like to take out a loan. My credit score is now 602 (I've actually been improving it) so what do you think I can do? The 300 a month is going to get old fast seeing as I'm hardly paying anything above the interest. I will take out a 1,000 loan from a loan shark just to improve my credit some more and give me breathing space. Any loan officers with advice for me? Do personal loans even exist right now? I don't own a house, and I make 26k a year. Even if you know the loan shark information, if their interest rate is lower than 20.9% that'd be helpful! I bought the car when I was married, and our income was over 50,000 a year lol... I got divorced the next year, sorry if I didn't mention that? Perhaps actually answering the question instead of meaningless opinions would be helpful in the future. They are threatening to sue both me and my ex for the 16,000.00 and my ex was actually the primary signer on the vehicle. But I signed a contract with him because this vehicle was for my use and my responsibility. He got a car too, and is still making his payments just fine, I am the problem and I don't want to cause anyone any more trouble.
6 months ago - 6 answers
Best Answer
Chosen by Asker
First on the loan it does not matter who is "Primary" and who is the "Co-Signer", in the eyes of the bank you are both equally responsible for the loan. So yes they can sue both of you. I am sorry to tell you that you may have made a big mistake by starting to pay them again. There was a chance depending on the Statute of Limitations for your State that you may not have legally owed the money anymore. However, once you started to pay again that rest the SOL and they can then go forward with a suit. You said that "..where they charged me 1,000 a month for each month made without payment". This statement gives me a big problem. Because that amount seems excessive, even at a 36%APR that is about 2-3 times the amount it should be. So if it ever got to court this is one you definitely have to fight and force them to give justification for the amount they are suing you for. If you are sued the best thing you can do is talk to a lawyer. For this amount of money, spending a couple hundred dollars for legal advise may save you many times that in the long run. Another fact is that you can't get out of debt by taking on more debt. But even if you tried, you are not going to find any legitimate lender who will loan you money with a current delinquency on your report. So be very careful about anyone who says that they will, especially if they ask for money up front as that is a sign that they are a SCAM. Without knowing all of your details, if this is not your only debt. If you are sued you may want to take a serious look at Bankruptcy. At the very least it would get these behind you where you can start over.
by OC1999
6 months ago
Asker's Rating: 
Other Answers
why on earth did you get an 18,000 car when you only make 26k a yr? that was your first mistake. a $12,000 car would have been pushing it affordability-wise
by Doctor Deth- 6 months ago
Your credit history is screwed. Stop paying the loan sharks, and offer them a one time payment of $750. If that isn't good enough for them, tell them to stuff it.
by zeuz- 6 months ago
Apply for low interest credit cards. Many companies offer a one-year very low rate of interest. Transfer the balance to the credit card. Try to pay more than the minimum payment every month. At the end of the year, look for another credit card company with a one-year low rate offer and transfer the remaining balance to that card. As your credit improves, you will be able to get lower and lower rates. Please stay away from loan sharks. That would be the last option. You would be better off taking bankruptcy than going to a loan shark. Is the ex-husband's name on the original loan? If so he might have to come up with some cash to help out.
by Lana E- 6 months ago
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