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Posted in Auto Loans
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Question By
YouknowmeasCyn

61 Contributions
172 People Helped
Need help! My car loan has 23.4% interest
My fiance and I did not have the best credit scores but he had a great job. We got a 17,000.00 loan for a vehicle at the time he was making around $30.00 an hour. Needless to say the job did not last. We are behind or upside down on the loan at the moment, I can get us caught back up using our taxes, but our interest rate is 23.4% is this predatory? I knew nothing of interest rates at the time and now what I am seeing is that 13-15% is considered high. I am unsure if I should take the hit and have them come and get it the payments are very high even if I drop the extra's that were rolled into the loan payment it will cost us around $500.00 a month. When he first lost his job we tried to get them to come get it and they would not just gave an extension. I am not sure what to do. I do not absolutely need the vehicle we have to older cars that would suffice if I send it back. Are there any options out there to help us? If I catch back up can I possibly go trade it in for something cheaper? I really hate to take the hit to my credit if I let it go back but I have a 5 month old so if I cannot trade it in after catching up the money used to catch up could greatly help us with things for the baby.... any ideas/advice will be greatly appreciated!!!!

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Top Contributor
3051 Contributions
2791 People Helped

You'd be much better off trading it in on the cheapest thing you can find and paying off that loan as fast as possible, or selling the car and paying off the loan.  A reposession will really hurt your credit.  I think that interest amount is predatory, but not sure if it is illegal.  You can always file complaints with www.consumerfinance.gov or www.ftc.gov and see what happens.  Also, please check out this website for more info:  www. moneyfor20s.about.com.  Click on the tab that says "Fix Money Mistakes".  On that page under Budget Problems is a link  "I Can't Afford My Car Payment. What Should I Do?".  Click on that for further info.  Best of luck to you!

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