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Home > Unanswered Questions > I Added My Husband as a Cosigner on My Truck Loan to Improve His Credit But Now I Can’t Make My Payments. – JS

I Added My Husband as a Cosigner on My Truck Loan to Improve His Credit But Now I Can’t Make My Payments. – JS

Because of the volume of submitted questions, I am behind in personally answering every single one. I need your help. I am publishing the question below for you to answer. Please help this person by adding your response and advice in the comments section of the original question. Click here.

“Dear Steve,

I am going through a divorce. I have a trailblazer with 22.25% interest rate because I tried to help my husband improve his credit by adding him as a co-signer. I would have had a higher interest rate but not that high on my own. I am now unemployed, divorcing on too many grounds to list, and a single mother of 2 young children.

I have chosen to stay with family and go to school fulltime considering the current state of the job market and economy. I get alimony, child support, and financial aid. My monthly income adds up to 2000 a month. I am paying attorney fees too. They are not too bad though.

I have 48k in debt but none of it is credit cards. I have 2 repossessed vehicles that I was foolish enough to co-sign on from 5 years ago. Since then I have had auto loans that have been paid on time. My attorney is telling me to turn in the trailblazer in conjunction with the divorce and have the deficiency split between my husband and myself.

My mother is willing to buy it from me for book value. My husband refuses to have his name remaining on the loan. He says I have to repo it or refinance it. If it goes to auction it will be sold for around 6k if it is sold to my mom it will go for 10-11k. 18500 is owed. I know if it is repoed then it affects my credit for the next 7 years and as a single mom I really need my credit. I can’t find a bank to refinance the 7500 on the car because I am not employed. I have a 564 credit score according to equifax.

JS”

I Added My Husband as a Cosigner on My Truck Loan to Improve His Credit But Now I Can't Make My Payments. - JS by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Car Loan Dude

    This type of loan you have is most likely a sub-prime loan. A high interest rate and high daily per diem.

    These types of loans are generally pursued to the fullest extent of the law per state statue. Repossession is generally not a good idea, as it will leave you with a very poor credit situation.

    I might suggest you take up your mother’s offer. Get her offer in writing (even notarized), and send it to the lien holder. Ask the lien holder to see if they will accept a settlement and do what is called a “title release”. This will give your mother full ownership of the vehicle. Once you are left with the deficiency balance, they will most often re-am the balance at a MUCH lower monthly payment. (often 500 payments will become 125) This leaves you with something you don’t have, but something you can better deal with.

    You also need to know your state laws regarding companies pursuing deficiency balances. For example, companies cannot generally garnish in the state of Texas unless your company is based outside of the state. Hope this helps.

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