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Interest rates for SECURED loan??? (Car as collateral)

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StartingOver10
Moderator Emerita

Re: Interest rates for SECURED loan??? (Car as collateral)

As pointed out in responses above, you will not get a loan without income.  Even with your family supporting you for the past two years, that would not be considered reliable income to pay your debts.

 

Plus you are looking to take the proceeds and start a business which is considered risky by lenders (any business without capital is considered risky). 

 

The natural question is this:  since you have been supported by your parents for the last X (at least 2) years, why don't you prepare a business plan and present it to your parents for them to invest in your new business? 

Message 11 of 15
Anonymous
Not applicable

Re: Interest rates for SECURED loan??? (Car as collateral)

I'm hoping they'll count that money as income, but I am afraid you are right and they wont. Am I correct in assuming a cosigned loan is even easier to get then a secured loan?

 

I didn't plan on telling the bank the money was for a business, though probably mentioning the business as a source of some income.

 

Basically I did do the business plan thing with my folks... That's how I talked them into investing. Unfortunetly they backed out me the first time about a year ago and also on helping me out so I could go to court and try to get a larger settlement from being hit by a drunk driver. I was able to negotiate it on my own and got reimbursed for the car but that money went to my folks to help pay for the car they got me (So I actually paid for roughly half of the car), then I was able to get another 6500 in pain/suffering, med bills etc...etc...  

 

So originally a year ago the money for the business was supposed to come and probably pretty closely coincide with the settlement money,  had they not backed out on me without warning... I basically would have been debt free and could have probably had the business up and running and probably getting some decent income.by now.

 

Them backing out also was basically them cutting me off period. So all the money that could have gone to paying off my smaller debt back then, and starting the business went to just supporing myself while going through this period of severe depression/anxiety, My parents don't understand what is going on, and can't imagine a grey area between a  person being able hold down a job while dealing with some issues, and being so screwed up you need to be in a mental institution...

 

So we had a bit of a falling out, though I did finally convince them to help me out with the business like they originally said they would: of course by the time they did my cost of living had increased due to the debt accumutlating by several hundred dollars a month, and the money just didn't go nearly as far in paying my debt and helping to get the business off the ground.... as it would have had I gotten it a year ago.

 

Also last year around the same time I found out a friend of mine had basically been going through some similar issues as myself, but was even worse off. They ended up homeless, developed a gambling addiction, and rekindled a drug habit they had kicked years ago. Since I understood what they were going through but was in a much better position then they were I felt like I needed to help. That cost me about 3000 dollars, so that added to my debt.

 

As it stands right now I'm trying patch things up a bit with the folks, and to negotiate with them to cosign for a loan; and if neccesary sign my car over to them so there isn't really any risk to them. 

 

If I can get a good chunk of this debt consolidated and free up my credit cards that should make steady progress with the business more realistic; which I think will go a long way towards helping me dig out of this depression. If I can go back out into the work force fairly confident it will only need to be full time for 6mo - 1 year that will help me hold it together. The ideal thing of course would be to get a job and then get loans and stuff, but when I go through these periods of depression I basically withdraw completely from the world and it manifest as severe apathy rather then crying myself to sleep or something like that. So basically I get paralyzed and it's difficult if not nearly impossible to do what I need to and get back on track, but with a little more tangible hope I think I can overcome that.

 

So it is kinda a chicken/egg situation... I need the job to get the money, but I need the money to clear some of the stress and general hopelessness away so I can get the job, and get back to doing the things I need to do for a better life. 

Message 12 of 15
Revelate
Moderator Emeritus

Re: Interest rates for SECURED loan??? (Car as collateral)

Not a counselor or anything such, but having been in analogous situations I would recommend simply go pickup a throwaway job.  Work it for a month and when you can demonstrate income (30 days worth of paystubs), then go get the loan funded, and then get on with your life.

 

30ish days to make a marked improvement in your life, everyone can do that and it's an incredibly short time horizon: you just have to go into places and ask for an application.  Minimum wage pretty much everywhere is just fine for what you need when we're talking small sized loans.

 

You may be surprised how that helps with some of your other issues as well, schedule and routine are absolutely good things, and even for a near isolationist such as myself, throwing yourself out there and re-finding out the majority of the world doesn't bite, helps too.  Future zombie apocalypse not withstanding Smiley Happy.




        
Message 13 of 15
Anonymous
Not applicable

Re: Interest rates for SECURED loan??? (Car as collateral)

I really feel for you and the struggles you've been going through. I know they're real, and it can be hard for other people to understand them -- and that just makes it more difficult for you. Here are what I believe your priorities should be right now, in order:

 

1. Get well. Clinical depression is a disease, and it sounds like that's what you're dealing with. If that's the case (and only a doctor can diagnose it), it is treatable. It often results from chemical imbalances that can be corrected with medication. Finding the right medication (or combination of medications) can be challenging, but with a good doctor there is hope, and that could completely change your life.

 

2. Fix the relationship with your parents. They bought you a car (or half a car). They've been fully supporting you finacially. And they've done it so that you can keep your head above water. And then you gave $3000 to a drug and gambling addict. I know you did it out of compassion for your friend, but I don't think you recognize what a betrayal that is to your parents (even if it was credit card debt and not their money). If I was your dad, I'd be heart-broken. I'd be torn between cutting you off completely for your own good, or resolving to take care of you for the rest of your life if that was necessary. I'd probably lean toward taking care of you, but I'd pay your bills directly, buy you groceries, get you a gas card, and never give you any cash, much less cosign a loan. I'm sure on some level you are grateful to them, but it doesn't come across that way in your posts. Be grateful for what they do for you, and stop pressing them for more or you're going to lose the two people you can't afford to lose.

 

3. Begin to reclaim your life in small ways. That means a simple job that you can handle. Maybe deliver pizzas. You have a reliable vehicle, and you only have to interact with people of a few minutes at a time several times per shift. Start taking responsibility for your own expenses and pay down that debt.

 

4. Slowly begin to develop your business idea, even if you don't make any money at it for now. Whatever it is . . . raise your profile, take on projects gratis, or consult in some way. But do it with baby steps with no plans to make it your vocation until you're done with 1 through 3.

 

I really hope you can take control of your life and that things get better.

Message 14 of 15
Anonymous
Not applicable

Re: Interest rates for SECURED loan??? (Car as collateral)

 

Thanks for all the advice, understanding, and kind words. It was almost a good day today, but...

 

Things still aren't going well with the folks. They didn't seem very receptive to cosigning even if I was willing to sign the car over to them to eliminate any risk on their part. Got the same kinda seemingly spiteful response I did when I first asked them about adding me as an AU, which took 6 months of fighting to convince them to do... Tried to talk about some stuff, but instead of a real and constructive conversation it was just more of them bashing me, and missing the points. My mom likes to play the blame/credit game; she has a bit of a martyr complex.... I can literally say something isn't their fault and they'll accuse me of blaming them for it, but they dang well want full credit for any help they give even if they use it to try and manipulate me, and are constantly issuing ultimatums and threats...Then of course they accuse me me of manipulating them, or emotionally blackmailing them when I just honestly talk about how I feel. 

 

 They don't get it, but they think they do, they can't imagine a grey area between being ok enough to hold down a job, or being so screwed up you need to be in a mental institution, and they aren't receptive to hearing anything that contradicts their theories, even when I'm admitting I'm in the wrong and trying to explain why that is, and why it is difficult to do what needs to be done about it given the circumstances. I haven't tried to hurt myself, or even threatened to, but what was just some moderate depression awhile back, and not having a job was appearantly enough in their eyes to warrant the serious suggestion that I have myself committed.

 

...Oh and while it's fine to go through the laundry list of ways in which I failed them some how, we aren't allowed to talk about how they constantly remind me of that, or how the difficulties with them are in part what caused all this and is helping to perpetuate it: because they cut a check.... which appearantly was supposed to buy my silence, and them a get out of jail free card for any time they may have been less then perfect. 

 

There was some progress made though...

I finally got them to basically straight up confirm that after the check they cut I don't really get to have a family until I have a job. That was something I said on several occasions that made them mad and they denied even after threatening to break off all contact if I accepted the money from them which I did because I would have no money for my CC bills thus no CC's for food, utilities, or any way to get cash to pay rent and CC bills..., but they finally copped to that in the last lil drama fest earlier today when they basically told me they didn't want anything to do with me till I had a job.... but I bet if we do talk again they will still be really mad that I suggested that I don't get to have a family, unless I have a job, and think that was terribly unfair of me to say... even though today marks at least the 2nd time they've basically threatened to disown me, or actually did kinda... at least temporarily, hell if I know... I've lost track.

 

Unless...

Your definition of family is "the people that can't have a civil conversation about important matters and just yell at you, and constantly remind you of how you've failed them, but occasionally give you money....seemingly out of guit, though they deny any and all responsibilty for what got you into this mess and for stuff that is making it harder then need be to get out of it... Oh and accuse you of just wanting their money, while getting PO'd when you mention that your other dad doesn't do crap for you financially but you still talk to him because him I can at least talk to about stuff without him loosing his poop, and yet they don't see that as evidence they may be wrong about me only being in it with them for the money"....???

 

At this point I've resigned myself that no more help will come from them, and even admitted that I wasn't really factoring in the car they helped me get in with the money they gave me for the business, and that I was kinda a jerk about that.  I'm mostly just about trying to have a constructive dialog about our issues, and maybe some normal chit chat, but it seems other then the blame/credit game my mother is so fond of, I think she's only talking to me now in the hopes of winning an argument.

 

She's a smart lady but by my mid teens she started winning a lot fewer arguments and started relying on throwing her hands in the air and shouting "I'm a horrible monther"  when things got rough as she stormed outta the room just as we got to something that really needed to be discussed... Now just seems more interested in one more chance to win an argument and making sure I know this is all my fault, and what victims they are; since admittedly they do have the moral high ground in some of this... rather then anything constructive happening.  

 

So that's a challenge to get past, and she's still fond of the horrible mother/shut down and run away tactic.

 

On the bright side if/when I do start working again, I'm a big enough person to let this go and them back in my life even though they just pretty much bailed on me again earlier today, and will probably take all the credit if I do manage to pull myself together and congratulate themselves on their tough love tactics, even though I just get to doin what I need to do when I can, regardless of what they say or do for the most part.... Oh and I found my car keys that were missing for at least a week, and got my new walmart and amazon card limits increased from about a 1000 each, up to 4000 each now, and also got approved for 3 other cards this month which will buy me a bit more time to get my self together even if I can't get the cosigned loan, or car as collateral loan.

 

So ya, it was a good day.... almost. Best one I've had in awhile...

 

Now here is random picture of my pet fox Echo as a reward for putting of with my sob story....

Reward Fox

 

Message 15 of 15
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