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What are my options if I cosigned on an ex-girlfriend's car loan and she is behind on payments?

I currently owe about $10,000 on my car which I have no problem paying for. I am a cosigner on my ex's car loan. She owes $11,000. We tried to refinance back when we were together a few months ago to get my name off but the loan was upside down. She is behind on payments and I have been receiving calls urging me to pay. I can’t afford two car payments. What are my options?

Debt
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January 2019

What a difficult lesson to learn. For others reading this, do not ever cosign a loan unless you are ready, willing and able to take it all on as your own.

This needs to become a priority. Why is she behind on payments? If she has any income at all, this needs to be the first use of those dollars, before anything else. If she has direct deposit by her employer, you could have her direct deposit the amount of the payment into your checking account so you can be sure the payment is made. Employers do not care whose account they deposit to as long as the employee gives them the bank routing and account numbers. Then maybe if the lender is getting payments, they will let the past due amounts carry for a while. If she needs to get a second job, then that's what she needs to do.

In the meantime, to protect your credit, maybe you need to get a second job and pay this until you can get the car from her and sell it. Use the proceeds to pay off the rest of the loan. She will still owe you for what you put into it yourself to get out from under.

As an alternative, if you can both get extra funds, either from second jobs or borrow from friends or relatives, pay just enough to get the loan down to what the car is worth and let her refinance it. However, her ability to refinance is diminshing every day that her credit score worsens due to this situation.

Sometimes desparate times call for desparate measures. This needs to be paid before either of you spend money on anything else but food, and that needs to be raman noodles and hamburger.

In short, act immediately to protect your own credit, get the car or the money from her, or both. It may be helpful to consult with a non-profit credit counseling service, but I wouldn't spend too much money on this because the lender is simply acting on the contract you signed with them. Your primary problem is with your ex who has not taken her responsibility to the lender or to you very seriously. I wish you well.

January 2019
January 2019
January 2019
January 2019