I Got Divorced And Can’t Afford to Live. – Rhauny


“Dear Steve,

I got divorced and now live on one income of 1600.00 monthly my car payment is $556.00 A MONTH and my rent is 550.00 leaving me roughly 500.00 to pay for childrens school lunches lights phone car insurance food etc. I am falling apart because of the car and I owe 35,000.00 for 84 months.

I dont know what to do? the car is worth $14,000.00 and I owe 35k


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Dear Rhauny,

What about child support? Are you not getting it? If not, you should pursue that.

You really have few options in this situation. The problem has arisen because you are not earning enough money to support your limited obligations. And when your car payment is higher than your rent, you’ve really got issues!

Your only option is going to be to give the car back to the bank or lose the car in either a voluntary or involuntary repossession. Unless your income increases, either through your own, or an infusion of child support money to support the children, the car will be history.

When that happens the car lender is going to come after you for a large balance due. They will sell your car at a public auction and the difference between what the car sells for and what you owe on it will become a big bill you will owe.

The most logical way to deal with that big bill will be with bankruptcy. Sure, you could ignore it and deal with the collection calls, being sued for it and then trying to make a future repayment plan but I’m not sure that you really need to add that kind of stress back in to what already must be a stressful situation.

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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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