I am in dire need of a loan, but my credit is horrible after a divorce. I am trying to sell/trade/refinance my car for a much cheaper car because I cannot afford the payment anymore. My car loan is in default by 60 days and in imminent danger of being repossessed unless a payment is made. If I make the payment, I'm left with $7 to last 4 weeks.
On the brighter side, I own my home and do not have a mortgage. The equity is far more than I need to borrow. I do have liens against my home from creditors, about $15,000, which is roughly 10% of the appraised value. I applied for a debt consolidation loan three months ago at Springleaf and was denied due to debt/income ratio and credit. I think I asked for too much money. I was trying to pay off everything, including the car.
I now have a new job after 9 weeks of being unemployed. I have higher pay, but my work history isn't great. Does anyone know how to find any lender who might work with me on this atypical situation? I just need enough money to buy a reliable car and six months of insurance, so a few thousand at most, under 10K. With more than ten times that amount in home equity, I have to believe some company will lend me the money. Any and all advice and suggestions also appreciated. Thank you.
By Liz A from OH
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The first thing you should do is contact the car dealership and the company that financed the car. By ignoring that debt, you have got yourself into a crisis situation. Many places will work with you to refinance or help you through this crisis. They don't want to repossess your car. That is just a hassle for them.
Secondly, try your reputable banks and credit unions. Do not go to payday loans or any sort of easy credit place. Nothing but trouble there.
See if you have some sort of government or non-profit agency that will help you with specific advice. Some states and provinces have such things. You need informed advice by someone who can look at your finances; not just advice from people on here.
You may need a co-signer for any loan that you get, so you should see if you can find someone to give you a hand this way.
Well, we went through bankruptcy and are facing possible foreclosure, yet my husband still went to a car dealership and was able to get a car loan for a Chrysler Touring 2012 with a trade-in of his 2008 truck which he still owes money on (until I asked him if he was nuts in the head and refused to go along with it). I would say you could still go to a dealership and find a car suitable for you and work out a deal with them for the car you want and the car you need to get rid of.
I also know that it takes awhile for a vehicle to be repossessed, as my husband did have a truck prior to this one he has now that did get repossessed. I'm attributing all his behavior and our troubles to a brain injury he had. I did tell him that if we had gotten that car that perhaps we would be homeless, but we could have a nice car to live in.
Good luck.
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