Question about credit after bankruptcy

[jessica151]

My husband and I filed bankruptcy in the beginning of August of this year. In the process we surrendered one of or leased cars. It has been almost 3 months since our court date and I was wondering how and when we can get another car. I am not sure if we are best to get a new car or try to take out a small loan for a used car. Any suggestions or comments would be very helpful.

-Jessica

[bigun]

I'll never understand why people go through the hell of a bk and a few months later are on the hunt for new credit at subprime rates.
No, don't orrow money for a new car. Save money, live below your means. Get a pt job if necessary and pay cash for a used car.

[jessica151]

Originally Posted by bigun

I'll never understand why people go through the hell of a bk and a few months later are on the hunt for new credit at subprime rates.
No, don't orrow money for a new car. Save money, live below your means. Get a pt job if necessary and pay cash for a used car.

I am by no means on a "hunt" for new credit. I will never have another credit card or loan that is not essential. Before assuming, just so you know, there was a reason that we decided to let the car go. There really is really no reason for me to go into detail. I was not asking for an oponion, but suggestions and advise on the best way to go.

[bigun]

The reason you let the car go is because you couldn't afford it.
You mentioned a small loan for a used car. Since you're not making a lease payment and haven't in a few months-save that money and use it to pay cash for a used car. The alternative is a loan that carries an interest rate near 20%. Not the ideal way to take advantage of a fresh start that bk provides.

[Who's Liable?]

Originally Posted by bigun

I'll never understand why people go through the hell of a bk and a few months later are on the hunt for new credit at subprime rates.
No, don't orrow money for a new car. Save money, live below your means. Get a pt job if necessary and pay cash for a used car.

What kind of crap advice is that?

Live below your means? You do not have to live below your means to save money... You don't need to get a second job to pay cash for a used car...

The advice you should be giving is: yes, get another car that you CAN afford, one that has you making payments, one that reports to the credit bureaus...

Get another department store card, get a gas card, get 3 credit cards, buy one item a month, utilize up to 30% of the credit limit, and make all your payments on time, every time, all the time!

Saying the interest rate is to high is not a valid argument because no matter where they go, the interest rate will always be high... That is just a part of the BK...

How are they to rebuild their credit if they pay for everything in cash? They are prolonging the suffering of having no credit in a credit hungry world.

They don't need to get a second job, they need to spend that time at the local library learning how to make a budget and sticking to it, learning and understading WHY they got into the mess they are. They need to change how they think of money...

[bigun]

Saying the interest rate is to high is not a valid argument because no matter where they go, the interest rate will always be high... That is just a part of the BK...


I strongly disagree. I'm an advocate of never paying interest if it can be avoided. Particularly financing a car that will only depreciate in value as time goes on-and, you're paying near 20% for the privilege.
I've always believed that the best course of action post bk is get your financial house inorder. Save money, max out retirement accounts and yes, live below your means. Become a real tightwad.
2 years post bk you can qualify for FHA mortgages that are not score driven, 3 or 4 years later, you qualify for more conventional products.
I know a guy who owns a payday loan store. Every month, he send out letters to people in 3 different zip codes that have had a bk discharged that month. He call his product "2nd chance" loans and they can get up to $1500. He picks up about a dozen new customers a month. I think that's sick. The ink is barely dry on the discharge papers and people are lining up to get to a subprime lender.