Q: Car loan. Biggest mistake I could have made. Now I need advice on which way to go.
My situation is about a vehicle loan. I opened a $3,000 loan on my vehicle in 2018. I havent been able to pay it off. I am charged $400 every month for the interest. I want to get a better car for my family. I don't know what would happen of I let the car go and they take it. Will I be responsibleto continue to pay for that loan? I gave up my title as well. How far will this follow me. I also have another option, I could visit a dealership with a co-signer. They could take care of the loan and my vehicle. I would be paying towards a new or used car from the car lot. My parents have good credit, but they told me to seek legal advice on what to do. I completely take full responsibility for the horrible decision on getting a car loan. I have never been in a situation like this, I need help.
A: you will remain liable on the debt whether you are in possession of the vehicle or not. If you give the vehicle to the creditor, they can sell it but whatever difference between the sale price and the money owed on the loan you will still be liable for. You can try to refinance the vehicle, or purchase the new vehicle before you give this one up so that your credit is not hit by the return with a loan balance due. You can file bankruptcy to eliminate the debt but that could affect your ability to purchase another vehicle.
A: Interest of $400 per month on a $3,000 loan? If that is really the case it could be loan sharking. An attorney can look at the numbers and see what they mean. You might possibly be entitled to relief.
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