‘He is at rock bottom’: My boyfriend’s car loan is in default and they want to repossess it in 5 days. How can we save his car and his financial future?

Hey Money Minder-

So, my boyfriend is in a bit of a tight spot with his car loan (44k). He’s fallen behind by 2 months and is totally strapped for cash.

With his divorce draining his wallet through child support, rent, and maxed-out credit card for groceries, he’s left with practically nothing. His next paycheck won’t even cover basic expenses for himself and his kids.

He’s feeling pretty hopeless, and I’m not sure how to assist him.

I suggested he call the lender ASAP to explain his situation and try to negotiate a lower payment plan. He’s also thinking of selling his computer for some extra cash, but I’m not sure what else he can do.

He’s adamant about not taking more money from me (I’ve already pitched in around 500 bucks to help him out).

Any tips or ideas on how we can tackle this would be greatly appreciated.

Troubled Girlfriend

Response from THE MONEY MINDER:

Hello There,

Hi there,

I understand the difficult situation you and your boyfriend are currently facing with his car loan in default. It’s commendable that you are looking for ways to assist him during this challenging time. Your suggestion of contacting the lender to explain the financial hardship and requesting a lower payment plan is a solid starting point. It’s crucial for your boyfriend to proactively communicate with the lender and explore all possible options. Selling his computer to raise some funds is a practical step to take to alleviate the immediate financial strain.

In addition to speaking with the lender, it might be beneficial for your boyfriend to review his budget and expenses carefully. Identifying any discretionary spending that can be reduced or eliminated temporarily, such as dining out or entertainment expenses, could free up some funds to allocate towards the car loan payment. It may also be worthwhile for him to seek advice from a financial counselor or debt management professional who can provide guidance on managing his financial obligations effectively.

Lastly, it’s important for your boyfriend to prioritize his financial well-being and seek support where necessary. Refraining from taking on additional debt or relying solely on others for financial assistance is a significant step towards financial stability. Encouraging open communication and seeking practical solutions together can help navigate through this challenging period.

Take care and best of luck,
THE MONEY MINDER