How to handle a car shortfall after finishing debt review
Finishing a multi-year debt program leaves people facing a major vehicle shortfall because the car is worth substantially less than the remaining loan balance. Selling the vehicle creates an immediate financial deficit, while keeping it prevents achieving overall financial stability once the program ends.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1continuing to make monthly debt review payments
- 2trying to understand debt review portals and settlement quotations independently
- 3asking community forums for advice on exit options and court packs
- 4Using a secured credit card to control limits
- 5Sticking strictly to debit cards and cash
- 6Calling the credit card company after approval to request a lower limit
- 7Putting the credit card in a container of water and freezing it to delay impulse spending
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“I’m posting anonymously because I’m feeling really overwhelmed by my financial situation and would appreciate some advice from people who have been through something similar.”source ↗
“My biggest problem now is my car, which is worth substantially less than what I owe on it. Selling it would leave me with a significant shortfall, but keeping it also makes it difficult to get myself financially stable.”source ↗
“What should I do once the debt program is complete this winter? Any advice is greatly appreciated!”source ↗
“I personally want my credit card limit to be no more than $1500. However, my friends are telling me that’s awfully low and I should much more than that. I personally don’t trust myself with a credit card with high limits (like $2000 or higher).”source ↗
Where this came up
People with this problem also raised
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- 4Should I drain my savings to pay off a car loan?
- 9Leaving Big Four accounting before one year
- 2Tax and financial implications of paying off a parent's debt