Smart Idea?

[megiepoo]

I wrote a blog about a week ago about my vehicle. I didn't know if I should keep it, although I really need a car. So I talked to my lawyer & he suggested calling 722 redemption. If they redeemed my car it would only save me $14 a month. However I was approved for a car loan. I guess I just want to make the right decision. I was approved up to a $325 a month payment (mine is already $365) so I was shooting more for a $250 payment. I want some opinions. I'm young & I honestly don't know what I'm doing. Oh yeah I am upside down $7000 & I would like to purchase a $5000 car. My interest would be 23%.
And one part I don't understand...they had to approve me. I guess if a person is filing bankruptcy then why do they have to be approved? Does it go off of your credit? I guess it just doesn't make any sense to me.

[Dirk Squarejaw]

Yes, getting new credit means that they are going to check you credit and bankruptcy could affect it greatly. Please educate yourself on how credit works before you're back here in another 8 years.

This is only going to help you if you've discharged your car and have not redeemed or reaffirmed it. If you've discharged it, then this could help you out. Ditch the car thats $7k upside down and get something else with a lower payment around the $250-mark that you are looking for. That sounds reasonable to me. This will work best if you are going to keep the car long term and not keep flipping cars or you'll be right back in the same situation with a car thats upside down.

I guess if a person is filing bankruptcy then why do they have to be approved? Does it go off of your credit? I guess it just doesn't make any sense to me.