CC+VW repo question
Date: Wed, 02/03/2010 - 18:36
I have $6K CC debt which is not past due yet. I'm leasing 2009 VW GTI with VW Credit. So my current situation is:
6 month ago I got laid off and been thinking since then about returning my car. My current income is really low: $1-$1.5K a month. My rent is $600, minimum CC payments on all cards (Citi, Chase, Amex blue) is $300, lease payment incl tax is $420, insurance $150 which comes out to $1470, so I'm out of budget.
If ill do volunteering repo I'll owe VW around $8-$10K+$6k CC debt. Total lets say $20k with worst scenario. Consolidation agencies charge 15%, but they not guarantee how many %'s they will settle down. So If they will settle just 30% seems like its not worth it. Should I make consolidation agency sign some kind of agreement stating that they will guarantee at least 40% debt reduction? There is some rumour on forums that you can settle your repo with VW for 40-60% plus if they will remove repo record from credit report, not quite sure if its possible but repo + no debt is not that bad either. Does anyone had any experience with repo? And may I ask consolidation agency to guarantee particular % of debt reduction before signing any agreements with them? Thanx
I doubt that any consolidation company would sign a contact of t
I doubt that any consolidation company would sign a contact of that nature. The most they can do is negotiate a reduction in debt amount with the creditor. But the final decision rests with the creditor. Hence, they wouldn't give you any guarantee.
Anyway, you can also try to 'do it yourself'
How much do you actually owe on the car? Settling with the auto lender after the car gets repossessed is possible. You need to negotiate it with the lender. Let them know that you're unemployed and unable to make payments. Private lenders can't garnish your payments if you're currently on unemployment income.
Hope I was of help. Let me know if I can clarify more.
Thnx for reply. When I talked to vw credit rep 6 month ago about
Thnx for reply. When I talked to vw credit rep 6 month ago about this situation, she told me that there are 2 options: 1. Return the car and pay all lease payments due wich is 12k, why would I return it then if I have 12k? :) 2. Im getting it returned to any dealership right after. They partner company inspect the car. Then they dump it on auction and send me invoice for amount I owe. They will set up installments without any apr which is good. i have no Idea if they willing to settle it for 40-50% + installements. Pay for delete is perfect but Im pretty sure that its not going to happen. Most likely they may take me to court.
If I will be taken to court with my current income ($1000-$1500) month. Im not on unemployement, im doing security part time - may they garnish my check? And if so whats a maximum % they may get from it?