Car Repo

You will want to know that the balance is legit. Generally they would sell the vehicle at a public or private auction, and then apply proceeds from sale of vehicle to your balance. Any remaining balance you are responsible for. At the time they sold the vehicle, they should have given you an accounting of the sale and calculation of your remaining balance.

If they've sold your account, then you should DV the new owner and request proof of the balance owed. Ask them for a bid history (or auctioneer's receipt) and a bill of sale. If there was a warranty, CL/AH insurance or GAP coverage, you will want to see cancellation refunds on your account. If it was a precomputed (78ths) note, there should be a Finance Charge Rebate for early termination. Ask them for all of this and a detailed calculation of the balance owed.

If they can provide that, then you should consider paying them back sooner rather than later. If they are legit, eventually they will end up suing for the balance, and then you'll have attorney fees and court costs added as well.

The problem with paying them $2000 at once is that A) it's not enough to 'settle' the account, and B) it will only buy you a month or two until they start hounding you again for more money.

You might call and setup a payment plan of $100-150/month, then put your $2000 in a savings and just use it to make those monthly payments for the next year. In the meantime if you can save up some additional funds on your own, then you can eventually settle with them in a lump sum.

Using your tax refund to pay off debt is a good use of the money I think.