What to do with an expensive, upside-down car loan?
Hi, unfortunately, my wife had a car before we got married. She got the car a year or so before we met and now we still have the car. Her mother offered to pay for the car (my wife was still a student at the time). The crooks at the auto dealership completely took advantage of them by selling them a car with a completely marked up sticker price with a high interest rate. To be more specific, she bought a completely stock 2008 Chevy Cobalt in 2008, which at that time a new, completely stock Chevy Cobalt cost around $13,000. They however, sold her the car for a sticker price of $18,000 at an interest rate of 25%. Yes, 25%. 3 years into it (and 3 years left), the payoff amount is around $12,000. Her mother routinely falls behind on payments and will avoid my wife if she’s late. Every so often, my wife is forced to pay a payment of $500 to avoid repossession. My wife is the sole source of income right now, as I am a full time PhD student. Paying for the car wouldn’t be a big issue, but unf
