I'm in the Military But Got Screwed by a Car Lot.

“Dear Steve,

I got screwed by a small hometown car lot on 2 cars now and I currently owe $14,000 on a $5,000 car that is now broken and not driving I can’t afford to get a new one still paying on this one my credit sucks and I can’t get a consolidation loan for enough to cover my car and other things I can’t pay my bills I barley have any food in my house and I have 3 kids that I’m becoming further and further unable to financially care for but cant’ get public assistance because I”m military.

Are there any grants or debt consolidation loans that will work with you if your credit is already bad?

Summer”

Dear Summer,

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Unfortunately there are none that I am aware of. But the bigger problem here is that you are getting so underwater, both with the car, and it sounds like, financially in general that it is probably time to take more drastic action to help protect you and those kids of yours.

Let’s start with the basics.

I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth and The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy. They will give you a great overview of what we need to deal with to get you moving in the right direction.

Then use the free How to Get Out of Debt Calculator to review your options.

After that, come back here and comment about what seems to make the most sense and let’s discuss that.

Does that sound like a reasonable first step?

Sincerely,

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.