Friends credit is terrible

[bjghelp]

What is the name of your state (only U.S. law)? Missouri

I am in a dilemna. I have a friend who has terrible credit - I do not know the whole story but I know it is really bad and she is legally seperated from her husband and he has had a car repossesed and before they seperated they were kicked out of 3 homes for non-payment of rent. She thought he was paying, he wasn't. Anyway, she has a loan payment on her car at 22%. I tried to co-sign for her for a new loan and even with my good credit, she was turned down. They were about to repossess her car for lack of payment when I started making payments for her about 5 months ago. but, this cannot go on. I don't know whether to tell her to let them repossess the car and just get an old car she can pay cash for or try to get a loan myself through some other means, pay her car off and have her slowly pay me back at a lower interest rate. I am trying to save her credit by not having a repossession take place but maybe her credit is so bad, it won't make any difference. I need advice.

[Hot Topic]

What makes you think she'll pay you back? Because she's such a responsible individual?

I think you have a "thing" for her, and that it's causing you to make decisions that could ruin your credit. Tell her you can no longer make payments for her. It's then up to her to deal with the situation.

[xylene]

Just stop making the payments.

5 months of car payments "for" someone just cannot go on.

You are not responsible for this person.

How they handle this will prove if they are your friend or not.

I have a feeling you are being used by someone who is feigning helplessness to gain your money.

[Antigone*of*Greece]

Originally Posted by bjghelp

What is the name of your state (only U.S. law)? Missouri

I am in a dilemna. I have a friend who has terrible credit - I do not know the whole story but I know it is really bad and she is legally seperated from her husband and he has had a car repossesed and before they seperated they were kicked out of 3 homes for non-payment of rent. She thought he was paying, he wasn't. Anyway, she has a loan payment on her car at 22%. I tried to co-sign for her for a new loan and even with my good credit, she was turned down. They were about to repossess her car for lack of payment when I started making payments for her about 5 months ago. but, this cannot go on. I don't know whether to tell her to let them repossess the car and just get an old car she can pay cash for or try to get a loan myself through some other means, pay her car off and have her slowly pay me back at a lower interest rate. I am trying to save her credit by not having a repossession take place but maybe her credit is so bad, it won't make any difference. I need advice.

There is no legal advice to offer you here, but here is some life advice ~ MYOB.

Why in the heck are you making this your problem. She doesn't pay her bills PERIOD. You are lucky that loan was turned down because otherwise you'd be back here in a few months asking how to get this loan out of your name because it is hurting your credit.

This person is a leech and will drain you of every penny you have. If that is what you want they go for it pal.

[Stevef]

Originally Posted by bjghelp

What is the name of your state (only U.S. law)? Missouri

I am in a dilemna. I have a friend who has terrible credit - I do not know the whole story but I know it is really bad and she is legally seperated from her husband and he has had a car repossesed and before they seperated they were kicked out of 3 homes for non-payment of rent. She thought he was paying, he wasn't. Anyway, she has a loan payment on her car at 22%. I tried to co-sign for her for a new loan and even with my good credit, she was turned down. They were about to repossess her car for lack of payment when I started making payments for her about 5 months ago. but, this cannot go on. I don't know whether to tell her to let them repossess the car and just get an old car she can pay cash for or try to get a loan myself through some other means, pay her car off and have her slowly pay me back at a lower interest rate. I am trying to save her credit by not having a repossession take place but maybe her credit is so bad, it won't make any difference. I need advice.

Your friend is not credit worthy. She has demonstrated that to you by not paying back the five car payments you already made.

You should consider anything you give to her as a gift. That way, when you never get it back, you won't be disappointed. If you over-extend yourself for her, you are risking serious damage to your own credit.

[Country Living]

I couldn't breathe when the OP said he tried to co-sign for her.... he should fall down on his knees and thank his lucky stars it fell through.

Get over the crush. Tell her she's on her own. Then run away.... run far away.... run fast..... or you will be sucked into the black hole in which she's living.

Oh, yes, there will be tears. She'll tell you that you're ruining her life, that she can't go on, <fill in all the drama crap here>. Don't even answer. This is NOT your problem to solve.

[Nicoleasm]

Originally Posted by bjghelp

What is the name of your state (only U.S. law)? Missouri

I am in a dilemna. I have a friend who has terrible credit - I do not know the whole story but I know it is really bad and she is legally seperated from her husband and he has had a car repossesed and before they seperated they were kicked out of 3 homes for non-payment of rent. She thought he was paying, he wasn't. Anyway, she has a loan payment on her car at 22%. I tried to co-sign for her for a new loan and even with my good credit, she was turned down. They were about to repossess her car for lack of payment when I started making payments for her about 5 months ago. but, this cannot go on. I don't know whether to tell her to let them repossess the car and just get an old car she can pay cash for or try to get a loan myself through some other means, pay her car off and have her slowly pay me back at a lower interest rate. I am trying to save her credit by not having a repossession take place but maybe her credit is so bad, it won't make any difference. I need advice.

Some Options:
1. File bankruptcy..if she hasn't already done that. She can look into doing a Chapter 13..I think with that one she might be able to re-negotiate her car loan terms..I would check out the laws for that in Missouri, or
2. If you do a Chapter 7, there's this thing called a redemption 777(it might be 722) its a bank that will negotiate the total amount of your loan, like if its 12,000 you currently owe, they'll be able to refinance for the vehicle's worth, which might be 5k or 6k..resulting in a lower payment
3.Or you can tell her to do a voluntary repossession and just give her the cash to buy an old, cheap car.

You're right, it can't go on with you making her payments, but that's nice of you to want to help.

[Antigone*of*Greece]

Originally Posted by Nicoleasm

Some Options:
1. File bankruptcy..if she hasn't already done that. She can look into doing a Chapter 13..I think with that one she might be able to re-negotiate her car loan terms..I would check out the laws for that in Missouri, or
2. If you do a Chapter 7, there's this thing called a redemption 777(it might be 722) its a bank that will negotiate the total amount of your loan, like if its 12,000 you currently owe, they'll be able to refinance for the vehicle's worth, which might be 5k or 6k..resulting in a lower payment
3.Or you can tell her to do a voluntary repossession and just give her the cash to buy an old, cheap car.

You're right, it can't go on with you making her payments, but that's nice of you to want to help.

OP,

Please be careful when listening to this advice. This poster should not be advising you to advise anybody with regards to a BK. There isn't anywhere near enough credible information to be able to make that determination.