my car broke down but i still owe 3000 on it and cant afford to fix it what do i do?

Home Forums Credit Repair my car broke down but i still owe 3000 on it and cant afford to fix it what do i do?

This topic contains 6 replies, has 2 voices, and was last updated by  admin 1 year, 11 months ago.

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  • #38827

    admin
    Participant

    the cost of repairs will be more than the car is worth. If I stop paying it and let it get voluntarily repossessed knowing its not drivable will I be sued? or arrested? Or will it just look very bad on my credit report? I need a car and It would be cheaper and a better investment getting a new one than it would be just to fix the car i have.

    #168914

    admin
    Keymaster

    First off, what kind of car is it? What^s wrong with it?

    If you stop paying on it, they will repo it and it will go on your credit. They won’t arrest you if they repo it, but they will come after you for the damages in the form of a law suit.

    #168915

    admin
    Keymaster

    if you owe money on credit cards they will raise your interest rate to the max when they see it on your credit report.

    #168916

    admin
    Keymaster

    You can fix it or let it sit. You still have to pay for it.

    If you get it repoed not only will it end up on your credit but they will sue you and you will still end up paying for the car. So not only will you have wrecked your credit. You will be paying for a car that you no longer have.

    #168917

    admin
    Keymaster

    If it is repossessed then you will still have to pay for it! Then you will have bad credit & hard to but another one, a house or get a credit card. You will not be arrested but will be “sued” by the car lot.

    #168918

    admin
    Keymaster

    Go and trade it in . Most dealers will pay it off and juggle paperwork so you can get another car.

    #168919

    admin
    Keymaster

    Don’t sweat it. Let the car get go back to the lien holder. They will sell it at auction and come after you for the deficiency. They will make multiple attempts to collect on the debt, but over time you will get less calls. They may sell this bad debt to a collection agency who will seek to settle with you. You usually can settle with these companies for about 20% of what you owe. Meaning the difference of what you owed on you loan as to what they sold it for at auction. So, if you owed 5000 on you car and they sold it at auction for 2000 then you would have a deficiency of 3000 dollars. If you settled at 33% you would only have to pay around a $1000 dollars. Once you settle there can be no further collections against you. At that point, you can fight this collection and get it removed from your credit report.

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