What am I gonna do now?

[gravelgirl66]

I am not sure if I am posting this in the right section, so please bear with me. My BK 7 is roughly 1 1/2 yrs. old. I have sinced kicked butt in bringing up my credit, and all 3 are over FICO 630. I have several credit cards, auto loan. etc....

My problem: My auto loan is with Citi, for 24%. I have 5 1/2 more years to pay on a 2003 honda. with 66k miles. I tried to refinance, no go. I tried to trade, with rebates, on something new. to help with the negative equity. The dealers (several) said I am 6K in negative equity according to black book. My payment is over 400 per month. with roughly 75dollars going to principle.

There really is nothing wrong with my car. It runs good, and has good gas mileage. I totally didnt read the fine print, and royally screwed myself when i sighned the loan papers. What are my options?

How bad would it ruin my credit to allow it to go back? I owe almost 15K. I know I would have to go to buy/here pay here. Also, Cap One sent me that Blank check thing, and that's what I was trying to use, to do my trade. So what if I just "used" it, no trade, got myself a good deal (the interest is 10%) and let the honda go? Do you think Cap one would figure out and then try to "take back" their money? Are they assumeing when they approve you that you are trading? They didnt ask.... I dont know what to do.... I know I screwed myself, and I am trying to tell myself to suck it up, and make the payments. How could I be so dumb?

Can you all help?

[tycin1]

Can you afford the Honda? Or do you just want to get rid of it because the interest rate is 24%? I would not let the car go back. I think that the best approach would be to pay towards the pricipal every month and gain some equity faster.

[willingtocope]

Yep...been there...ah, actually, still there. BK, needed a car, etc...

So, what to do? First, you can't just hand the car back. They'll probably take it, but then they'll resell it to one of those buy here / pay here places for about 30% of blackbook, and then come after you for the balance. Not good.

Looks like you're stuck for awhile (just like me). My plan is to throw some extra money at it whenever possible. I'm doing like $75 per month. My financing is through HSBC, and I did read the fine print which says there is not penalty for early payoff (another thing you might get stuck with), and every extra little bit goes directly to the principle. My plan is to do this for a year or so, until my "upside down" becomes a little better, and then I'll try for another car.