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Ask Dave

Trapped In The Car

A bad credit score prevents Lakeisha from getting a loan to get out of her bad car loan. What does Dave say about it?

QUESTION: Lakeisha is a single mom who has a 2006 Chevy Malibu that she wants to sell, but her credit score is so bad she can’t take out a loan to make up the difference and get another car. She owes $14,000 on the car to Capital One, but brings home less than $2,000 a month. Dave says there are 2 possibilities here, and details both.

ANSWER: One possibility is that you’re stuck and it will just take a while to dig through this thing. It might be you take an extra job and put another $1,000 on the car for 14 months, and then you’re out of debt. That would be tough and the car is too expensive, but you can maybe talk to Capital One and see if they’ll let you sign a note for the difference, and they’ll release the car title for what the car brings. It could be that you work an extra job for a while, pay it down and then sell it.