When, what month?

 

thanks jim, i'll be sure to name the boat after you. i already applied with my employer's credit union, and still no word back. would have to add my fiance's jeep as collateral. and hope that my credit rating/history picks up the remainder.

 

mid-2012 , i'm not sure what month exactly

 

I would do that if you can get a decent rate.

 

OK. Dammitjim gives some good options. Your current lender may or may not be inclined to help. To help pursuade them, try dangling some other things in front of them - moving your savings and/or checking accounts over to them, bringing over some family/friends as add'l customers, etc (banking is all about customer/depoits growth right now). As far as reworking the terms, I would concentrate on a lower loan balance and/or a more reasonable interest rate. Stay away from just extending the loan term, which will lower your payment but actually increase your total loan expense. Go in armed with info - ie competing rates from other lenders, current market value of the car, etc.

If that doesn't work, I would try to find some type of bridge loan to pay down the loan balance. Credit card companies are always offering short-term interest rate deals ($5,000 for 1.9% interest for 18 months, etc). If you could take advantage of that, you would be trading 17% for 1.9%. Just make sure you are disciplined and pay off the short-term loan.

If you can't do that and can't refi, I would hunker down and start paying additional principal on the loan. If you could add $100 each month to your payment, you will pay off the loan 6 months earlier, saving $800 in interest. If you could add $200 more each month, you will pay off the loan in less than 2 years and save $1,300 in interest. I know it sounds counter-intuitive but the sooner you can wipe out the loan, the better. Good luck.

 

sounds good but i have no extra money to put towards it, plus they made it a pain to pay extra on the principle. if i merely pay more in one month than whats due, they apply it to next month, interest and all.

 

1. ask for the payoff amount
2. borrow money from your parents
3. work OT, save, and sacrifice your immediate future to pay your parents ASAP.
4. chalk it up as a lesson well learned.

 

Then there's not much you can do unless you can find a relative who will loan you the money. If you can't come up with any more money in a month and owe way more than it's worth, no bank is going to make you a loan for more than the car is worth at a low interest rate with mediocre credit. If you're that strained on finances, putting your fiancee's jeep up as collateral may not be the best idea either. You would hate to lose both cars if you can't make the payments.

 

Another option is to default on the loan. I know it's a terrible idea in 99.9% of the cases, but its MIGHT actually be a good idea for this guy.


DON'T TAKE THIS AS ADVICE. IT'S AN IDEA PRESENTED TO OTHERS TO DISSECT.

 

But then his car gets repoed and he can't get a new one because his credit is trashed.