Posted on March 5, 2010 at 7:40 pm I can really use some guidance right away!! Here's my situation.Approx. four days ago, my vehicle was reposed. I was told by the people who took it that I had 15 days to work out an arraignment. If this is true, I am trying to do the right thing for myself, now and for my future.I was approx. three months behind on my car payments due to severe health problems of depression which I am still experiencing. I am concerned that if I am able to come up with the money that potentially I will fall behind again. It is possible that within a month or two I can also be well and begin to work and get back on my feet financially.There are still about three and a half years on the loan at a huge payment (at least huge for me) of 450. dollars a month so it appears I would be stuck with this loan for a long time to come.The loan is upside down in that the loan is for 16,000 dollars but the car is only worth 8,000 tops.I had filed bankruptcy four years ago and have had a repossessed vehicle in my debt history.I am concerned that I am demolishing my future by allowing this repossession to occur.Can you please help and tell me what are realistic options to handle this as successfully as possible. I want to roll up my sleeves and tackle this problem. However, I need the wisdom form experienced people to guide me. Please tell me what to do!!??

Posted on March 6, 2010 at 9:20 am My friend the good news is having your car repossessed is that it has now become an unsecured debt. Having missed three payments on your loan already created a dent on your credit, the best solution now that this loan has become an unsecured loan is to negotiate a debt settlement on the balance.

Posted on April 4, 2010 at 10:13 pm .I am concerned that I am demolishing my future by allowing this repossession to occur.Can you please help and tell me what are realistic options to handle this as successfully as possible.----- I agree, consider debt settlement, get rid of your debt, and worry about your credit later.

Posted on April 4, 2010 at 10:19 pm Right, the next questions to ask are - what is debt settlement all about? - how does it affect one's credit - and how to repair one's credit?

Posted on April 5, 2010 at 2:43 am Debt settlement is the negotiation of the consumers entire balance from the full amount down to more or less half of it - in 1 to 3 years. Debt settlement is not a government sponsored or sanctioned debt relief program. It is privately run. Debt relief is its own industry that having been relatively new - is still largely unregulated. That is not to say that it's not legitimate or effective. It's more of a rising or developing industry.

Posted on April 5, 2010 at 3:06 am Right, and if you're wondering how much it would cost you (fee) to settle your debt - that would depend on your total debt amount. The industry standard is 15% of your debt (spread over 18 months) or 20-25% of the settlement amount. There might be other fee structure, so don't forget to ask.

Posted on April 5, 2010 at 4:56 am How to make sense of 15% of your total debt amount? Debt settlement companiesaccept clients that have a high amount of debt, $10k and above, whose accountsare past due or almost - so 15% of $10k is $150. How much would the regular monthlypayment be on a $10 k debt? Around $800? If the consumer enrolls in a debt settlementprogram, his/her monthly payment would be significantly reduced (from 800 to 150). Reminderthough - the first few months of payment, once enrolled, might not be applied to the debtor be sent out to the creditors, because they would first be applied to the service fees.But that shouldn't alarm the consumer - as the chances of getting a settlement is high anyway -and the negotiator is already working on the reduction of the debt.