🔺 r/personalfinanceupoopknife71·69 days ago
Girlfriend can no longer work, what’s the best way to lower my car loan?
Hello everyone! I am a bit jammed up right now. To give you a brief backstory, a year ago my girlfriend and I were expecting our first child together. We were living together splitting the bills/mortgage 50-50. Life was on easy mode. Midway through the pregnancy, we decided to buy a family car. Payments are 700 monthly and this was comfortable for us at the time. However; a few months later into the pregnancy , my girlfriend became high risk, and had to stop working all together. After the birth of our child (both mom and baby did great), she hasn’t returned to work due to ongoing (and unexpected) medical problems. This car payment is really doing a number on our budget. I’m 10k under water on the car (I owe 35k and it’s worth 25k) and have about 9k in credit card debt. I used up all my savings. With me working extra, we are in the green ($300) I have a 2nd car that’s completely paid off that I can sell for 15k. My question is: should I put that 15k towards my auto loan and refinance my loan for a lower payment? Or should I put the money towards the credit card debt and bank the rest in savings for a safety net? Somebody close to me suggested I use the money to pay down the auto lo…