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The Repo Man Took My Car for HSBC Bank. – Nesie

Nesie

“Dear Steve,

My car was repossessed by HSBC Bank on Tuesday, March 17. I am four months past due which includes the month of March (monthly payment is 538.70). I cannot afford a payment of $538.70 because: share rent is $525.00, monthly gas/toll is $240.00, groceries $200, insurance $250, IRS payment plan $100. My net monthly income is approximately $2,074.00.

Since I lived at home with my parents and now with my sister, I have always borrowed to make ends meet. I have credit card debts, an outstanding loan from my older sister of $1,100.00 that have put us at odds, and other miscellaneous bills as well as student loans that will be starting soon. I own a 2001 Hyundai Elantra – fully paid; I have no kids; I have no savings.

Assuming that I can find someone to give me a loan against the Hyundai, should I use it as collateral to get my car out of repo? I will need a significantly lower payment plan than the $438.70 I was offered by HSBC OR should I allow the process to continue and make arrangements to pay at a comfortable level OR what do you recommend?

Nesie”

Dear Nesie,

I would contact HSBC and see what they are willing to do. I’m impressed that they were willing modify the loan at all.

If they refuse to modify the loan so it is affordable I would not borrow against your Hyundai to recover your other car.

The bad news here is that you are going to get with a huge bill for the car that was repossessed. HSBC will send you a bill for the difference in the loan balance and the small amount they sell the car for at auction.

At the heart of this issue is the fact that it just sounds like the car was not affordable at all based on your current income and expenses and the fact that you will need to start paying back your student loans soon.

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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.

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