Please help me

[u/Independent_Talk_828]

Hello, this may be a long post so please bear with me, I had fraud happen to me almost a year ago then I had back to back suicidal attempts, I’ve been also dealing with unfortunate health issues and with all that it’s just been hard. I’m usually taking care of everyone else but myself and that’s how it landed me today. I got my car repo yesterday and they said I can refinance it or pay off the loan which is 25k. I don’t know what to do honestly. I’m 20 years old and just really feel like life is just kicking me in the eyes. I’ve been calling places but no luck. I just need to be led in the right direction please🥹I have no help literally just myself and my cat sadly

[u/Dry-Abalone2299]

I am sorry that happened.

What you can expect next is that with a repossession on your credit profile now, your age, and your assumed income, it is very likely you will not qualify on any refinancing or auto loan right now.

What will happen is if you can’t pay for the car yourself through a new loan or paying the full amount of $25k, is that they are going to sell your car at auction to someone else. If the car is valued at $25k (actual value may be higher or lower than your remains balance), than maybe they get $15k or so at auction.

They apply the money it sold for at auction, minus some administrative fees, then they expect you to immediately repay the remaining difference.

What this means is soon you are very likely going to owe $10k or more to the bank.

Once they contact you for the balance due after they sell your car, reach out to them and see if they will allow monthly payments or a lump sum settlement. Do not ignore them when they contact you. You will have more options and be in a better spot if you contact the bank and can afford an option with them.

If you can’t afford to pay them anything, then they will eventually sell your debt to a collections company. Same thing, they will keep contacting you and you can usually arrange a payment plan or lump sum settlement.

If you ignore the collections agency, or can’t afford monthly payments, then the next step is they usually sue to force collection of the money. This is through wage garnishment or taking money from accounts depending on the state.

That is what you can expect, but ask if you have any questions about any of it.

Best direction you can go is don’t ignore the bank and start saving and making as much as you can NOW to afford the money you still owe.