[spain805]

My question involves an auto loan or repossession in the State of: New York

I am thinking of voluntarily surrendering my car which we just can't afford anymore due to my husband losing his job. Now here's what I was thinking and I am not sure if this is true...

I know a car loan is considered to be 'secured' debt that you cant consolidate with other credit cards debts...But if we give it back and they sell it at auction, I know we will owe a set amount of money.

Is this amount now considered unsecured debt since they have nothing left to secure, and would we be able to consolidate it with other credit cards to have a set monthly amount to owe??

Let me know...

[OhMy]

My question involves an auto loan or repossession in the State of: New York

I am thinking of voluntarily surrendering my car which we just can't afford anymore due to my husband losing his job. Now here's what I was thinking and I am not sure if this is true...

I know a car loan is considered to be 'secured' debt that you cant consolidate with other credit cards debts...But if we give it back and they sell it at auction, I know we will owe a set amount of money.

Is this amount now considered unsecured debt since they have nothing left to secure, and would we be able to consolidate it with other credit cards to have a set monthly amount to owe??

Let me know...

If you default and surrender your car, you can expect your credit cards to either close your accounts or lower your credit lines to your outstanding balances.

This is known as "UNIVERSAL DEFAULT" if you default with any lender you are considered in default with all of your lenders.

Your credit cards will also raise your interest rates to the DEFAULT RATE and in some cases that can be as high at 39.99%.

When you surrender your car for a repo, they will sell the car off for usually much less then the amount of the loan, then sue you and take out a judgment against you for the deficiency.

Consolidate how? your credit score will be so low you will not be able to borrow a penny from anyone.

[spain805]

I was talking about debt consolidation...not taking out a loan. As for my credit cards, I already closed all of them...I was just talking about taking all of my debt and combining it into one payment that I make a month and didn't know if this amount that I will now owe to the car company could be combined into that..

[OhMy]

I was talking about debt consolidation...not taking out a loan. As for my credit cards, I already closed all of them...I was just talking about taking all of my debt and combining it into one payment that I make a month and didn't know if this amount that I will now owe to the car company could be combined into that..

Your title is "Can I Refinance the Outstanding Debt" the answer to that is NO.

If you want to try a "debt consolidation company" just be sure to find one that has a positive rating with the BBB. Many of them are total ripoffs, you would be better off negotiating with your lenders directly.

[aaron]

If you are eligible for enough credit to cover the balance, your best approach is to sell the car yourself and pay off the difference between the sale price and your loan balance. As was previously indicated, if you allow them to auction the car, they are likely to recover a very low sales price and you'll end up owing more money. (And then there's the previously mentioned affect on your credit.)

[OhMy]

I would just like to add;

Just because your credit cards are in CLOSED status if you still owe a balance on them and you have another credit account go into default, then they can still raise you to the default rates of up to over 39% even on these "closed" credit cards.