I own a 2007 Kia Spectra with 33k miles on it. I have a loan with Americredit for roughly $13k and pay $460 a month. The car is worth maybe $5k. The car runs great, fairly new tires (had some get punctured by debris a year ago) and i keep up with the oil changes. I want to keep the car. However, with my $7,000 in CC debt from caring for my mother for 14 years and car insurance, I can no longer keep up with the payments. I took a pay cut, my hours are being reduced an d all my expenses seem to keep going up.
Americredit has already tacked on 2 extra payments on my loan and caught me up to make my loan current once, they claim they can not refinance and are not very helpful with options. Nobody will refinance because of the outstanding balance on the loan. What options do I have with the car? I thought about a voluntary repossession of the car, but that will probably make it worse being sued for the remaining balance after the car is auctioned, using it as a trade in would just put me in the same situation.
With the CC debt, I am talking to Care One and they are talking payments of $220 a month for all of my cards (plus $50 for the first month). That takes that payment down about $50 a month but the car is killing my budget. I am looking into more work hours and a second job. What are my options?