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car payments

Q&A: Car repo is a nonstarter

March 30, 2020 By Liz Weston

Dear Liz: I had to move to assisted living due to a stroke. I no longer need my car — or the car payment. Can I simply stop paying and let it be repossessed? There are about 18 months to go before it’s paid off. I don’t need great credit anymore and our current expenses exceed our income.

Answer: If you’re that close to paying off the loan, then you probably have a good chunk of equity. It would be a shame to lose any of that value to the costs of repossession.

Typically repossessed cars are sold at auction, often for less than their resale value. The proceeds, minus the expenses of repossessing and preparing the car, are applied to your loan. You’d only get what’s left over. (If what’s left over is less than what you owe, the amount is added to your debt.)

This bad financial outcome is on top of the damage done to your credit, which can be substantial. Even if you think it unlikely you’ll need credit again, you don’t know for sure that you won’t.

If you have the option of selling the car to a private party or dealer — or asking a trusted friend or relative to help you do so — that’s usually a much better way to go than letting the vehicle be repossessed.

Filed Under: Credit & Debt, Q&A Tagged With: car payments, Credit, q&a, repossession

Wednesday’s need-to-know money news

July 17, 2019 By Liz Weston

Today’s top story: 4 types of investment accounts you should know. Also in the news: Why you should keep the bare minimum in your checking account, steps to take when you’re struggling with car payments, and why what you don’t know about your parents’ finances could ruin yours.

4 Types of Investment Accounts You Should Know
Finding the right account to meet your needs.

Keep the Bare Minimum In Your Checking Account
Putting your money to work.

Struggling with car payments? Take these steps before you get into trouble

What You Don’t Know About Your Parents’ Finances Could Ruin Yours

Filed Under: Liz's Blog Tagged With: banking, car payments, checking account, Investing, investment accounts, older parents and money

Monday’s need-to-know money news

June 24, 2019 By Liz Weston

Today’s top story: Baffled by points and miles? Let the 80/20 rule guide you. Also in the news: How to turn around car payment trouble, 7 ways to make your money last in retirement, and 8 ways to save on wedding gifts.

Baffled by Points and Miles? Let the 80/20 Rule Guide You
The Pareto principle.

Car Payment Trouble? How to Turn It Around
Taking back control.

7 Ways to Make Your Money Last in Retirement
Budgeting for the future.

8 Ways to Save on Wedding Gifts
Great presents that won’t break the bank.

Filed Under: Liz's Blog Tagged With: 80/20 rule, car payments, miles, points, Retirement, retirement savings, wedding gifts

Monday’s need-to-know money news

August 13, 2018 By Liz Weston

Today’s top story: 9 expenses to pack in your moving budget. Also in the news: How to stretch summer job money, retaking control over car payments, and when it pays to buy a one-way plane ticket.

9 Expenses to Pack in Your Moving Budget
Leave some wiggle room.

How to Stretch Summer Job Money
Invest in your future.

Car Payments Out of Control? Retake the Wheel
Get back in the driver’s seat.

When It Pays to Buy a One-Way Plane Ticket
One=way premiums are disappearing.

Filed Under: Liz's Blog Tagged With: car payments, moving, moving budget, moving expenses, one-way airline tickets, summer jobs, tips

Wednesday’s need-to-know money news

June 15, 2016 By Liz Weston

Zemanta Related Posts ThumbnailToday’s top story: How to determine what your car payment should be. Also in the news: Itemizing vs. standard deductions, what to do with old electronics, and quirky ways to save money this summer.

How to Decide What Your Car Payment Should Be
Determining what you can afford.

How to Decide on Itemizing vs. the Standard Deduction
Deciding which deduction works best for you.

What to Do With Old Electronics
Clearing your personal information.

17 Quirky Ways To Save Extra Money This Summer
No-money Mondays!

Filed Under: Liz's Blog Tagged With: car payments, money saving tips, recycling electronics, tax deductions

Monday’s need-to-know money news

April 11, 2016 By Liz Weston

Student-LoansToday’s top story: Finding the best student loan repayment plan. Also in the news: How student loans affect your taxes, calculating monthly car costs, and tax payment options for when you owe the IRS.

Find the Best Student Loan Repayment Plan for You
It’s going to take a while.

3 ways student loans affect your taxes
Don’t forget to deduct your interest.

Calculate a monthly car cost when buying outright to better weigh your options
A different way of thinking.

Tax payment options for when you owe the IRS
Rule #1: Don’t ignore it.

Filed Under: Liz's Blog Tagged With: car buying, car payments, student loan repayment, Student Loans, tax payments, Taxes

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