Dear Dave,
My boyfriend was supposed to help me pay for my car, but he moved out and left me. Now, I can’t afford the $500 monthly payment. I work 35 hours a week, but I only make minimum wage. The car is still worth about $19,000, but I owe $20,000 on the loan. What can I do? --Rachel
Dear Rachel,
You went car crazy, and bought a vehicle that was way out of your league. There’s only one thing you can do – sell the car!
Right now, your entire financial world is wrapped up in paying for this thing. Having a live-in boyfriend, and relying on him to help make the payment, was a big mistake, too. When he left, the financial support went with him.
At this point, all you need is enough credit to cover the hole that you dug. Go to your local bank or credit union, and try to get a very small loan for about $3,000. If the car will sell for $19,000, then sell it, and use $1,000 to cover the difference. Then, take the remaining $2,000, and buy yourself a little junker. I’m talking about basic, ugly transportation. Next, pick up a part-time job on the side, and work like crazy for a few months to get that loan paid back as fast as possible.
This is a painful process, but there’s a good side. When it’s all said and done, you will have learned a lesson that will last you the rest of your life. You won’t make this mistake again!--Dave
Dear Dave,
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