I’m about 20K in credit card debt. I owe about 142K still on my home. I put a friends car in my name that cost 67K (I’m still not sure how that loan went through).
My income is about 43K. I’m struggling!!! I can’t get a consolidation loan because I have more debt than income. I’m trying to get this car out of my name but my friend isn’t helping. I feel I’m stuck and don’t know which way to go. I’m blessed that my bills haven’t been late in over a year. But it seems I’m barely making it everyday. What can I do?
What’s the best way to get out of debt? Is it possible with no money to spare?
First, what the hell? A $67,000 car in your name! Is your friend a guy?
If your friend defaults on the car loan, the bank is coming after you. Based on the fact that the friend is not being very cooperative and that the car loan would instantly sink you if they bank pursued you for payment, I think the answer is crystal clear, it’s bankruptcy for you.
The reason you feel stuck is because you are stuck. The last nail in your financial coffin was sunk that day you co-signed for your friends car loan.
Let’s say that you struggle to pay your bills for the next two years and then, for what ever reason, your friend falls behind on payments. Guess what, you will probably go bankrupt then and will have wasted the last two years making payments that never led to you getting out of debt.
Now it is entirely possible that your friend will make all those car loan payments but I seriously doubt it. If they were in good financial shape themselves they would have secured the loan on their own and if they wanted to help you out of this jam they’d refinance the loan but they are being uncooperative.