AboutGina Boykin Expertise Financial planning, debt management & credit cards, and money-saving tips for adults and teens. Saving vehicles such as CDs, treasuries, bonds, and money-market funds. I provide honest, objective and relevant information to help you made the best decision for your money.
Experience Over 10 years of combined experience in accounting, audit, investing, entrepreneurship, real estate.
I am the CEO of Atlanta Y.E.S., a nonprofit organization dedicated to financial literacy for youth.
Education/Credentials B.S. Accounting, 10 years of experience in accounting, audit, and investing
Question My boyfriend currently owes 8k to Ford. Ford has been calling him, telling him that he needs to pay it. My boyfreind doesn't have the money, and it seems like we're kinda stuck in the middle. Is there anything we can do? Like Should he take out a personal loan? Or is there a company that can help us Lower the amount, and work with us?!
Thank you so much
Shauna
Answer Does he owe for a car that he still has in his possession? Whether he does or not, you have a few alternatives.
1-Sell the car. I'm not sure what the car is worth, but let's say he can get $6,000 for it. He could ask that lender, or another bank, for a personal loan for the difference (in this case, $2K) and be rid of the original loan and the car. Of course, he would then need to either find alternative transportation for a while as he saves up some money, or get the cheapest car he can find and use it temporarily while he saves up.
2-Seek credit counseling. If there are other payments that he is struggling to make as well, he may be a good candidate for consumer credit counseling. Check out nfcc.org (the National Foundation for Credit Counseling). The agencies that are NFCC affiliated help people work with people to get a budget, develop a payment plan, and even work with lenders to either reduce the rate or payment.
3- Try to negotiate directly with the lender. This means calling, probably several times, and requesting to change your payments. It may seem like it's not working, but keep trying. Talk to supervisors, managers, or as high up a level as you can to get someone to help you. Make sure to get the final agreement IN WRITING.
4-Do nothing. This is the worst option, but it's one a lot of people take. Ford will repossess the car, if he still owns it. If he doesn't have the car any more, eventually, Ford will sue. Both of these actions will damage his credit report.
