News for hackers. Stuff that matters.

A comment on U.S. Economy Shrinks at 4.8% Pace, Signaling Start of Recession. Parent comment

Re:U.S. Economy Shrinks at 4.8% Pace, Signaling Start of Rec... by Shivetya on Wednesday April 29, 2020 @12:43PM (#23021209)
This is such horrid advice. She will have to declare bankruptcy to discharge the auto loan and 18k debt may not be sufficient to guarantee she can. Worse, that 18k will now have fees added to it for the repossession and late payments. The chance of getting the car back through auction are near nil for many reasons, from that auctions do not necessarily take place in the same locale to it can be months before the car gets to that point as the paper work has to work through the system, a system sufficiently hampered by the CV19

Now we don't know the full extent of the original poster's loan issues but the best bet is to try to arrange payment changes with the lien holder. Never ever advise anyone to walk away, that is the worst thing you can ever do.

[ Parent | on HN ]
Re:U.S. Economy Shrinks at 4.8% Pace, Signaling Start of Rec... by tekknik on Wednesday April 29, 2020 @11:46PM (#23027221)
The worst advice hardly, you’re exaggerating. Your credit will take a hit for 7 years, which is definitely a long time but the worst of it is you will pay more up front in deposits and pay high interest rates from loans. I’ve walked away from more than $18k during the last crisis and here I am today with a great credit score and am looking at buying a house potentially soon (or at least was pre COVID). The worst thing you can do is to continue paying on something you know you’ll lose anyway, causing even more financial problems for yourself.
[ Parent | on HN ]