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My Husband Bought a Truck Two Years Ago. He Can’t Pay For It Anymore. his Father Cosigned. – Brandy


“Dear Steve,

Almost 2 years ago, my husband bought a truck before we were married for a little over $34,000. His monthly notes are roughly $600 due to his bad credit even though his dad was a co-signer.

This was okay until a few days ago when he was laid off and now realizes that there are barely any jobs that are hiring right now. On top of this, thanks to the recession the amount owed on the truck is around $29,000 but the KBB value is around $22,000 at best. So, we cannot sell it to pay off the loan, and we really cannot afford this note any longer, especially since we have a 4 month old son and other bills to worry about.

What are my options other than surrendering this vehicle to the bank? HELP!

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Thank you,


Dear Brandy,

Before you consider giving the vehicle back to the bank you should talk to your father-in-law about the situation. Once you had the truck back and it is auctioned, the bank will go after your father-in-law for probably $16,000 or so that will be due. This will probably be the difference between the loan balance and the wholesale auction price.

Since your father-in-law was silly enough to cosign for the truck he would be much better off to help make the truck payment until your husband found a new job. It might be painful but trust me, it will be significantly less expensive than the crap that will rain down on him with a repo.

If your father has good credit he may want to consider refinancing the truck with his credit at a lower interest rate to lower the monthly payment. Try a site like Eloan for refinancing options.


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About the author

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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