car payment we can't afford any more...what can we do?

[mtemm]

we have 3 years left to pay on a car and we simply cannot afford the payments (dh had to take a huge paycut last year). we've tried to get by and it is a real struggle to keep up. the problem is that due to depreciation, we owe more than the car is worth according to kelly blue book. about 6 months when we looked into selling it, the difference was about $5k. we don't have the $5k to make up the difference.

any suggestions?????

I am sick over this. I am tired of struggling/worrying about money and letting it consume my life. we need to make some real changes and I'm hoping to figure this part out, I just can't seem to figure it out.

 

[BriarfoxinWA]

we have 3 years left to pay on a car and we simply cannot afford the payments (dh had to take a huge paycut last year). we've tried to get by and it is a real struggle to keep up. the problem is that due to depreciation, we owe more than the car is worth according to kelly blue book. about 6 months when we looked into selling it, the difference was about $5k. we don't have the $5k to make up the difference.

any suggestions?????

I am sick over this. I am tired of struggling/worrying about money and letting it consume my life. we need to make some real changes and I'm hoping to figure this part out, I just can't seem to figure it out.

I'd start with contacting the loan company. Let them know your situation and see if they will re-amortize the loan to lower the payment down to something you can afford.

 

[Cheshire Figment]

Contact the finance company immediately. They would much rather work out something with you than have to pay for repossession and then sell the car at a loss.

 

[The Mystery Machine]

Who's car is this?

Who's name is on the title and who's name is on the loan?

Second calling the loan company, perhaps they can take the car and then you can pay off the loss.

And the official loss number is found on NADA not KBB.

 

[DVC-Don]

Happened to me once when I was younger. I went to my bank and they refinanced the auto loan for a longer period to lower the monthly payments.

 

[mtemm]

thanks all! sorry it took me so long to reply but I was searching out info that you all posted and ended up with a lovely virus on my computer. yep, that was the icing on the cake for me that day. hopefully it is on its way to being healthy, but at least my husband is home again and I can use his!

the car is in my husband's name. he bought the stupid thing when we were separated, during his mid-life crisis year. we are up to date on payments, but its a huge struggle and I just don't know how long we can keep up with them. I'm tired of the struggle.

will talk to him about possibly refinancing this weekend. I never knew it was an options, never thought about calling the loan company before. our credit is excellent, so maybe that will help, too.

eta, what is nada?

 

[Lisa loves Pooh]

I would try to find a way to get a nonsecured loan for the deficit. If you can find a bank to work with you, that would be best. And if you still require a car, I would try and get $1000-$2000 extra and get a basic car to get you from point A to point B.

 

[Handbag Lady]

Isn't there a website where you can post information about having someone take over your car loan or lease?

Would that be of any help? I'm not sure how it works exactly, but I read about it a few years ago on the Budget board.

 

[dnoyes]

thanks all! sorry it took me so long to reply but I was searching out info that you all posted and ended up with a lovely virus on my computer. yep, that was the icing on the cake for me that day. hopefully it is on its way to being healthy, but at least my husband is home again and I can use his!

the car is in my husband's name. he bought the stupid thing when we were separated, during his mid-life crisis year. we are up to date on payments, but its a huge struggle and I just don't know how long we can keep up with them. I'm tired of the struggle.

will talk to him about possibly refinancing this weekend. I never knew it was an options, never thought about calling the loan company before. our credit is excellent, so maybe that will help, too.

eta, what is nada?

NADA is a book like Kelly Blue Book that is used in SOME states. I buy cars in several states and use NADA where there is no rust or like problems.

 

[The Mystery Machine]

NADA is a book like Kelly Blue Book that is used in SOME states. I buy cars in several states and use NADA where there is no rust or like problems.

It is what most financing companies use to find the value of the car as well.

http://www.nada.com/