Duston

“Dear Steve,

Credit card debt, 3 personal loans, all for cars, one is the car I drive now, the other was for a car I wrecked, insurance paid, but for insurance purposes the car was in my dads name he needed the money for personal reasons, he did not pay off my loan, so I am stuck with it and a wrecked car, the other is a truck for my brother that he does pay, for now. I am in a debt settlement program for the credit cards with enlightened debt solutions, my credti is tied up, I cant get a loan to settle with the credit card company, can you help me?

Any other way to settle with my credit card company with the debt other than through a debt settlement program, can i get a loan to rearrange my debt. disburse it in a way.

Duston”

The Answer:

Dear Duston,

One thing is for certain, you and car loans don’t seem to mix well.

That move your father pulled in taking the insurance money and using it for personal reasons instead of paying off the loan was bullshit. That’s all on him. He should never have done that because I think it is going to come back to bite him and frankly, you should not feel the least bit guilty about it.

So you are with a company called Enlightened Debt Solutions. I took a look at their site and it looks like they are offering the same sort of credit counseling and debt settlement programs a lot of companies do. A quick web search reveled some bitchy complaints against them but pretty standard stuff.

People that enroll in monthly payment debt settlement programs don’t seem to understand that their creditors are not going to get paid when they are sending the monthly payments to the debt settlement company. And then when they get sued, the consumer gets pissed off. It is the type of complaints that I would expect to see.

Duston, the chances of you digging your way out of this hole through monthly payment debt settlement on three car loans is, well, slim. And all the time that you are sending the debt settlement company payments, your creditors are getting nothing and your credit is getting trashed.

There is no way you are going to get a loan to pay off your debts in the current shape you finances are in. And if anyone promises you a loan, run away. It will be a SCAM!

I think the time has come to properly euthanize your debt and you need to go talk to a bankruptcy attorney. The cost of bankruptcy will be much cheaper than the cost of monthly payment debt settlement and you can get moving forward with your life now, rather than watching this situation linger for years and years and risk getting sued by your creditors.

Now here is where you dear old dad will get bitten on the ass. When you go bankrupt the lender for the car in your fathers name will look to him for payments. He, doesn’t have the money because he spent it. His fault, not yours.

Oh yes, your brother is a deadbeat for not paying you if he can. When you go bankrupt the lender will take that truck back. And that’s the way it is.

Big Hug!

@GetOutOfDebtGuy

Other Related Articles to Read

• How Do or Can I Settle My Debts on My Own? – Shawna
• Should I Go Bankrupt or Do Debt Settlement? – Endeudado
• I’m in a Debt Settlement Program and Getting Sued by My Creditors. – Cathy
• My Car Was Repossessed. Do I Have to Pay The Entire Loan Back? – Barbara
• I Brought My Account Current But My Car Got Repossessed Anyway. – Nelson
• Buy here lot wants to repossess my vehicle but they want me to bring it back to the state. – Tim
• My friend left the country and left a repossesed car behind. What risks would I take if I drive it?
• Can I Sue My Finance Company for Wrongful Repossession? – Angela
• Should I Include Repossessed Truck in Chapter 13 Bankruptcy – Jessca
• How soon can I get a mortgage after paying off a repo? – Samantha

Read the full article at GetOutOfDebt.org, click here: I’m in a Debt Settlement Program and Can’t Get a Loan. – Duston

Greg

“Dear Steve,

Car payments and car insurance are killing me financially!

I don’t know what to do on my car payment anymore? I’m getting financially stressed! Its extremely high and I pay high interest, plus I have another car I owed on and traded it for this new car and what was left on the loan? Was tacked onto this one.. I’m thinking very seriously about going to bankruptsy to get out of it?

By the time I pay this car off? I’ll have 42,000 dollars into a 18,000 dollar, this is on a 6 year note, the car is a Ford Fusion S.. I’ve already payed a year on this car and I’m living pay check to pay check plus I’m opening new credit cards to live on and survive off of because of these big payments along with the 82.00 a month full coverage insurance.. I even thought of letting the car go back? Instead of doing the bankruptsy?

Greg”

The Answer:

Dear Greg,

Dude, you are way upside down on that car loan and in a debt death spiral if you are taking out cards to pay bills. When you traded in that other car with the negative equity you just wound up rolling the debt forward and now you owe way more on your car than it is worth.

The path you are on right now is not sustainable. Bankruptcy would allow you to give the car back and not have a huge bill, that would otherwise be due.

Giving the car back alone as a solution here, really isn’t an option.

Rather than be afraid of bankruptcy, go talk to a local bankruptcy attorney or click here for a free bankruptcy consultation. It certainly sounds like the right thing to do.

Big Hug!

@GetOutOfDebtGuy

Other Related Articles to Read

• Two Months Late on Car Payment But Want to Avoid Repo. – Linda
• I Am 71 Days Behind on My Car Payment. I Am On Unemployment. – Pamela
• Our Debt is From IVF Treatments But We Are Also Underwater On Our Mortgage. – Rob
• Lower Your Car Payment. Skip It, Lower Your Interest Rate and Get Cash Back
• I Got Divorced And Can’t Afford to Live. – Rhauny
• Dayna Can’t Afford to Keep Her Car Or Get Rid Of Her Car, Even By Repossession
• What Happens to My Credit if I Make a Partial Car Payment? – Nicole
• What Can I Do About My Car I Can’t Afford Anymore? – Jared
• Wife Left, Business is Down, and I’m Out of Money. – James
• I’m Living With My Ex-Boyfriend and Can’t Afford to Move Out. – Kelly

Read the full article at GetOutOfDebt.org, click here: My Car Payments and Car Insurance Are Killing Me Financially. – Greg

“Dear Steve,

Several years before I met my husband he took out a loan to get a car. At the time he was in the Navy and was stationed in San Diego, CA.His family lived in MI, where we now live, and while visiting them he was in a car accident which totaled the car. The car insurance company that he used paid the loan company, but they paid them what the car was worth in MI. The car was worth more in CA so he owed them what the remainder of the loan. He has recently been served with papers stating that he is being sued for what he owes plus their legal fees.

The problem is that if we had the money we would have given it to them already, but we are barely making ends meet as it is and while we keep hoping for the best things seem to only get worse. Since he got out of the military he has been going to school with his G.I. Bill money and, until recently, working at factories (Navy gunners mate doesn’t translate well in the civilian world).

Lately, the MI job market has gotten so bad that it’s become impossible to find any work. We are already on food stamps and he is forced to donate plasma twice a week just to keep us afloat(we are literally forced to spend every dime). We do the best that we can to make sure that our children are safe, happy, and healthy and to do that we deny ourselves even what many refer to as necessities (food, clothing, etc..).

I know that we don’t have long to figure out what to do, but we don’t even know where to start. The only thing that came to mind is filing for bankruptcy, but we were told that, since we are being sued, we will have to pay a lawyer to file for us and for them to prove to a judge that we are broke. To be honest, I spend most nights in tears and I am terrified because I have no idea where this money is going to come from if we lose (or even for a lawyer) and no idea how to defend my family. Thank you so much for your time even if you are unable to help us.

Sincerely,

Vanessa”

Other Related Articles to Read

• Massive Credit Card Debt, Three Kids in College, and Getting Nowhere. – Mike
• Can I Accept Responsibility and Pay Off My Debts Without My Husband’s Assistance? – Debt
• I Have 3 Kids in College and Just Making It Month-To-Month. – Catherine
• Living From Paycheck to Paycheck. – Angelene
• We Are at Our Breaking Point Trying to Pay the Bills Each Month. – Michelle & Phillip
• We Have to Use the Credit Cards for Food and Gas. We Don’t Want to File Bankruptcy. – Linda
• I’m Being Sued by a Creditor And Was Told Only Chapter 13 Bankruptcy Might Be Right For Me. – Tim
• My Lung Was Hanging Out. We’ve Spent All of Our Retirement. I Need Help. – Cary
• I Think I Did Everything Right, But I Still Seem to be in Debt! – Bel
• I’m in a Debt Settlement Program and Can’t Get a Loan. – Duston

Read the full article at GetOutOfDebt.org, click here: We are Living Paycheck to Paycheck and Being Sued for Thousands Plus Legal Fees. – Vanessa