Ask The Get Out of Debt Experts

My Car Lender Said They Could Refinance My Loan and Then Denied Me. – Manuel

“Dear Steve,

i currently have a vehicle that i am way upside down on, the monthly payments are 636 dollars a month, and my pay checks have been cut in half because of the economy. I have contacted the company to seek help and find a solution but all they said i could do was refinance my vehicle, but they denied me for that. My interest is currently at a 13.5% and at this point im going to start missing payments because i simply cannot afford it anymore. Is there a way to have the company lower my interest or payments for the duration of my loan?


Dear Manuel,

I would suggest that before you start missing payment you first contact and look for a loan to refinance the car from the LendingClub peer-to-peer lending network.

If that does not work for you then try They refinance vehicles.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.


P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Choice1 Choice2 Choice3 Big Hug!
Get Out of Debt Guy - Twitter , G+ , Facebook
If you have a credit or debt question you'd like to ask just use the online form .

READ  What Are the Ramifications About Refinancing My Car Loan? - Jessica

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.


  • Also consider that you may be approved in terms of your credit, but other factors may cause a declined application.

    Other factors include:
    – Car make
    – Car model
    – Age of vehicle
    – Mileage
    – Type of vehicle (E-series vans, motor homes, motorcycles, etc.. not approved)
    – Title needs to be clean

  • Hi Steve,
    I have a 2002 Honda Accord that I pay 344.70 a month, I have been unemployed for about a year now and was on Temp disability. I am currently 2 months behind on my car payments because I am not receiving my disability anymore. But not only am i behind on my car payments the transmission is going out on the car and I have only had the car 2 years,and i really cant afford to get it fixed. I still owe about 9,500 on the car. My co-signer (my mother) is employed and helps me on the note but she can only help being that she has her own bills. My car is finance through Wells Fargo bank. What are my options?

    • I am a 23 years old, and currently in school which I will be completed with the program on 5/6/2010. I will be getting a job right after that.

    • Charissa,

      Best solution is to work out a mutually acceptable plan with your lender to avoid repossession. If they take the car back they will be going after your mother for the balance due after the car is auctioned.


  • Dear Steve,

    I currently have a 2005 Honda Accord that I have been paying on for the last 2 years. I now owe $16,200 on it. My payments are $485 a month and I pay 21% interest! I have been unemployed for about 3 months now and am drowning in the payments. What are my options? I can’t refinance because I am unemployed right? I NEED a car. I’m a single mom and live in San Diego. If I allow them to pick it up, then I will never be able to get another reliable car. I feel so “stuck” and lost! I’m just trying to stay afloat! 🙁

    • Melissa,

      If you had some income coming in other than unemployment benefits I’d suggest a Chapter 13 bankruptcy where the value of the car loan could be reduce and you could keep the car still. In that case just find a local bankruptcy attorney you like and talk to them.

      But, on unemployment benefits only and with such an outrageous payment the logical bet is the car payments are just unsustainable and will eventually be repossessed.

      The best way out of this is going to be income. Since you are in a major metro city, go and register with every temporary agency in town and take every job they can place you at.

      Big hug.


  • If you are not able to get financed, then you might need to look into other options. That is a very large monthly payment indeed.

    Often, companies can accept 90% of a payment to close the books on any given month. While its not a huge help on smaller car payments, it would be quite a savings on your own $636.00 payment. Keeping in mind of course, that this money does not just disappear, it gets tacked on the back-end of the loan and can generate a bigger problem in the long run through interest.

    You can sell the vehicle. Even though you may still owe some, they might accept a settlement.

Share a Comment / Leave a Reply

Scroll to Top
%d bloggers like this: