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Ask Dave

Voluntary Repossession

Andrew and his wife fell in with payday loan places and are considering a voluntary repossession of one of their financed cars.

QUESTION: Andrew and his wife make $74,000 a year combined. They fell in with payday loan places and now owe $2,200. Much of their money tied up with two financed cars. He’s thinking of voluntarily surrendering one of the cars. What should he do?

ANSWER: I think you can pay the loans off in four months, but it will take beans and rice budgeting and living on a strict budget. You make $3,800 a month and that will cover your mortgage and food. Get on a tight budget, keep the payday loans current and you can get rid of them in four months.

If you’re going to default on anything, default on the payday loans. You’ll get chased by a collector, but that will happen if you give up the truck to repossession. As soon as you get these greedy payday loan snakes out of your life, keep them out of your life.