Product of the System

This may or may not be an option -depending upon who your car loan is through. However, in my case, the lender is willing to work with me -in spite of my current credit situation.

First, I’ll tell you the deal and then I’ll tell you why it’s not as bad as it sounds.

• They will accept partial payment -as long as more than $50
• They will charge 5% of the difference -paid versus owed- as a penalty
• The minimum penalty will be $50 per payment, if over 10 days past due
• Once the “hardship” is over, they will work with me on payments
• They will probably roll missed payment onto the end of my loan
• They may work with me on the penalty amounts

Ok. So, racking up all these penalties at a $50/month minimum doesn’t sound great, but here’s why it works -at least in my situation:

• I only have to come up with $50-$100/month to keep the car
• This allows me to keep driving my car legally while I cannot pay for it
• They will work with me for up to 6 months like this
• I should be on my feet again within 6 months
• I should have my reimbursement from insurance within 6 months
• As a last resort, I could make partial payments and then file bankruptcy

Hopefully it wouldn’t come to a bankruptcy, but with all the debt and creditors in my case, it only makes sense. I’ve been putting it off for years because it seemed like I could manage and improve my credit -in spite of the seemingly insurmountable barriers.

However, more and more keeps piling on from out of nowhere, it seems. So, it’s really looking like a bankruptcy is the way to go. Although, if I can salvage it without doing so, I will. In my case, however, I didn’t just spend unwisely causing my debt. In my case, I was wronged and falsely imprisoned and lost everything due to corruption in the government (see my bio). So, I don’t feel like I should be punished to carry this burden -even though I have been for four (4) years now.

Because my insurance is causing my current predicament by not covering the uninsured auto accident, I will charge any penalties for late payments to them. It’s only fair that the longer they delay; the more they should have to pay out. I have found that it’s always good to give people a reason to do the right thing.

Note: I know that many people have a weak stomach when it comes to making requests (or demands as some see it) like that. However, you need to stick to your guns and you just might get them to do the right thing -and do it quicker than otherwise. Besides, it really is true that “It never hurts to ask!”

I have a few notes about the insurance situation, but I’ll write about that here.

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