Hi Money Minder,
I’m 17 and in a tricky situation with my mom. She basically forced me to buy a car with my savings and her credit card, and now I have to pay $372 a month. I feel like I’m starting my adult life already in debt. What should I do when I turn 18 and the car is in my name? Should I sell it and take the hit, or keep it? Also, how will this affect my credit score? My mom is moving to Texas, and I’ll stay in California for school, so I can use my grandma’s car again.
Best,
Car Confusion Conundrum
Response from THE MONEY MINDER:
Hello There,
While I understand your frustration with this situation, it’s important to approach it with a level head and a clear plan. First of all, congratulations on having a part-time job and being financially responsible at a young age. The fact that you already have a car, even if it was under these circumstances, is a step ahead for your future independence.
When you turn 18 and the car is transferred to your name, you have a few options to consider. Selling the car and taking a loss might feel like a quick solution, but it’s essential to weigh the pros and cons. Selling it might help you get out of debt quicker, but it could also impact your credit score negatively.
One practical approach could be to keep the car, especially if you rely on transportation for school and work. This way, you can continue to build your credit by making consistent payments on time. If you’re concerned about the monthly finance payments, it might be worth looking into refinancing options or exploring ways to increase your income to cover the expenses comfortably.
Regarding your relationship with your mother and grandmother, it’s a challenging situation that you might need to navigate carefully. It’s essential to focus on your financial independence and well-being during this time. As you continue to grow and build your own life, remember that setting boundaries and making informed decisions will help you pave the way for a successful future.
All the best from THE MONEY MINDER in tackling this situation and managing your finances effectively. Remember, it’s all about facing challenges head-on and finding practical solutions that work for you.
