So I have a $570 car payment every month. I live rent free with my uncle and all I have to pay is the electric bill. I want to get my own place as soon as possible but this car payment is really dragging me down.
My dad and I co-signed on the car in the summer of 2017 because he said it was a good deal (he's a car salesman so go figure) and that it would help me build credit. Well since then I had to take another job that pays a lot less, along with taking on a few extra bills that I didn't expect to have.
A few months ago I told him that I was having trouble making the payments and that I have had to dip into my savings on more than one occation and that kills me. I asked him if I could trade it in or sell it back and he said that I would end up owing just as much as I do now anyways. He told me that I should refinance my car with my SO because we both have better credit than he does. That way I would have about a hundred taken off the monthly payment.
We were about to do that about a week ago and dad calls me and says that he is going to file for bankrupsy soon and to take him off as co-owner asap so that it doesn't hurt my credit.
Explaining this who debacle to my mother (they're seperated) she asks "Why don't you just take your name off the car and leave your father's name on it. That way you can get rid of it and get a cheaper car". Dad says I can't do that without having the car paid off first.
The reason I've turned to r/personalfinance is because both of my parents aren't doing very well in life and since I don't know any better, every time they tell me I should do something, I usually believe them (they are very persuasive). So what should I do? Refinance the car and still pay around $400 a month for this car? Or should I try to get rid of it somehow?
Edit: I make about 20k a year (this will go up soon because I will start working full time after this semester) and my SO makes about 15k. The interest rate on the car right now is 12.69. And the principal balance on the car is $25,587.
Submitted February 26, 2018 at 01:54PM by Deku_Nutty http://ift.tt/2FzqhiW
