I really made a big mistake with a car loan for someone else. I bought a house by myself earlier this year which is going fine. I have a 157K mortgage loan.
My long-time boyfriend was unemployed and his credit isn’t that good and of course, he needed a car, perfect timing. We initially went into a seedy place that caters to those with bad credit. Long story short, even they wouldn’t help him because he had no income so they ran my information and after 5hrs sitting there, I had a 2005 Tahoe in my name.
Right now the remaining car loan is 23K, completely over-priced. He has been pretty good about the car payments, a couple lapses, but he is employed now, though given his poor credit and shaky job history I want to do anything I can to get out of this car. ANYTHING!
It’s just so risky and I was so stupid. It has 86,000 miles so no re-financing even. I went to my bank to see if I could get a personal loan/line of credit to pay off the car and sell it (it’s still worth around 10K). The bank turned me down because of my income to debt ratio.
They also mentioned some delinquency though I honestly am not sure where that is from–I’ve been pretty good since college though my cards are maxed out right now. I do have credit card debt, maybe around 8K so not horrific, but its there, and I do make my monthly payments.
I basically live paycheck to paycheck, and I desperately want to get this car out of my name. I’ve been told to just trade it in and get something else cheaper, but it’d still be in my name and any way you spin this, the payments will still be very high!
I fear there is no solution and I don’t want to do anything to my credit score that I’ve worked so hard to improve over the years. I dont feel like I’m at the point where bankruptcy is the answer as I do stay afloat, but I’d love to work towards a clean slate. I dont think I even qualify for debt consolidation and I’d hate to end up in a shady situation and worse off than I am now.
Thanks for any insight or ideas!