Money Matters
kelley198721
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Need advice urgently on a car payment situation (long)
Hi everyone. I don't post much but I'm a very frequent lurker and you ladies seem to give great advice. So I thought I'd post my problem here.
Here's the background. In February of this year, I started a part-time job. I was looking for full-time but I was desperate so I took it. In the meantime, I kept applying to full-time jobs. Well in April, my search came through and I was offered a full-time job with better pay and benefits.
However, I didn't think I would receive my first paycheck in time to make my car payment for May. So I asked my parents for help. They told me "We can't help you make the payment but we'll help you get a deferment." Apparently my parents had made deferments on their car loans before with success. But they were dealing with a different bank.
My car loan is financed through Santander Consumer USA. I should have done research on them before I bought the car but I was desperate. I needed a car badly and they were the only bank willing to give me the loan. That should have been a red flag for me.
Now that I've done research on Santander, they have horrible reviews. Which scare the living daylights out of me. I've read stories about cars being repossessed when they weren't even 30 days late on the payment. Another story that stuck out in my mind was one person thought they had paid off the loan entirely only to have Santander say "Nope, you still owe thousands of dollars in interest." This really scares me.
Anyway, I bought the car back in August 2013. Made my first payment on October 1st, 2013. I then changed the payment due date to the 6th of every month because I was nervous about the due date being so close to when I get paid. I also signed up for autopay so that I could avoid the $10 convenience fee of paying online.
Since then, they have drafted money out of my account on the 6th of every month with no problem. I have never been late on a payment.
Until now. Back in mid-April, I called them and asked for a deferment because I was worried about not getting my first paycheck in time to make the payment for May. They told me I had to call back on April 30th and ask for the deferment. Ok so I did that.
On April 30th, they said they had to wait to make a decision until the payment due date or after. Ironically enough, I got my first paycheck and realized that I did have the money to make the payment after all. But my parents advised me to try to get the deferment anyway because this would help me boost my savings. I wish now I hadn't listened to them but it is what it is.
So on May 6th, I called and they said the decision was still pending. They told me to call back today and they would definitely have a decision by then.
But last night, I was talking to my SO and we were both very frustrated and worried. With the encouragement of my SO, I decided I wanted to call off the deferment and just have the bank take my payment today via autopay.
So today I call. And guess what they say. They tell me that I CANNOT call off the deferment until they make a decision!
What the hell! I literally have the money to make the payment. I would gladly make the payment right now! All they have to do is take it! But they tell me I can't call off the deferment now until they make a decision?? They haven't even told me, "Yes, we'll grant you a deferment." All they have said is "The decision is still pending."
I wish now I had never gotten a loan from them. They have been so shady and they keep giving me the runaround every time I call.
So what should I do now? I'm currently contemplating making the payment online via their website and just paying that stupid convenience fee. But I'm nervous to do that. Because what if I make the payment online right now and on Monday, they say "Ok we will NOT grant the deferment so we'll go ahead and take that payment now."
Then I would be essentially making TWO payments for this month only and I can't afford that.
I don't even know what to do. I am at a loss. I wish I had never tried to do this deferment. I wish I hadn't listened to my parents' suggestion. But it's too late now. Anyway, what should I do? Make the payment right now online or wait and see what they say on Monday?
Meanwhile, my payment is three days late right now. I'm afraid of it being even later. What if they send a guy to repo my car? This bank is just so freaking shady that I don't trust them at all!
Help me, ladies. Help me figure out what to do
Here's the background. In February of this year, I started a part-time job. I was looking for full-time but I was desperate so I took it. In the meantime, I kept applying to full-time jobs. Well in April, my search came through and I was offered a full-time job with better pay and benefits.
However, I didn't think I would receive my first paycheck in time to make my car payment for May. So I asked my parents for help. They told me "We can't help you make the payment but we'll help you get a deferment." Apparently my parents had made deferments on their car loans before with success. But they were dealing with a different bank.
My car loan is financed through Santander Consumer USA. I should have done research on them before I bought the car but I was desperate. I needed a car badly and they were the only bank willing to give me the loan. That should have been a red flag for me.
Now that I've done research on Santander, they have horrible reviews. Which scare the living daylights out of me. I've read stories about cars being repossessed when they weren't even 30 days late on the payment. Another story that stuck out in my mind was one person thought they had paid off the loan entirely only to have Santander say "Nope, you still owe thousands of dollars in interest." This really scares me.
Anyway, I bought the car back in August 2013. Made my first payment on October 1st, 2013. I then changed the payment due date to the 6th of every month because I was nervous about the due date being so close to when I get paid. I also signed up for autopay so that I could avoid the $10 convenience fee of paying online.
Since then, they have drafted money out of my account on the 6th of every month with no problem. I have never been late on a payment.
Until now. Back in mid-April, I called them and asked for a deferment because I was worried about not getting my first paycheck in time to make the payment for May. They told me I had to call back on April 30th and ask for the deferment. Ok so I did that.
On April 30th, they said they had to wait to make a decision until the payment due date or after. Ironically enough, I got my first paycheck and realized that I did have the money to make the payment after all. But my parents advised me to try to get the deferment anyway because this would help me boost my savings. I wish now I hadn't listened to them but it is what it is.
So on May 6th, I called and they said the decision was still pending. They told me to call back today and they would definitely have a decision by then.
But last night, I was talking to my SO and we were both very frustrated and worried. With the encouragement of my SO, I decided I wanted to call off the deferment and just have the bank take my payment today via autopay.
So today I call. And guess what they say. They tell me that I CANNOT call off the deferment until they make a decision!
What the hell! I literally have the money to make the payment. I would gladly make the payment right now! All they have to do is take it! But they tell me I can't call off the deferment now until they make a decision?? They haven't even told me, "Yes, we'll grant you a deferment." All they have said is "The decision is still pending."
I wish now I had never gotten a loan from them. They have been so shady and they keep giving me the runaround every time I call.
So what should I do now? I'm currently contemplating making the payment online via their website and just paying that stupid convenience fee. But I'm nervous to do that. Because what if I make the payment online right now and on Monday, they say "Ok we will NOT grant the deferment so we'll go ahead and take that payment now."
Then I would be essentially making TWO payments for this month only and I can't afford that.
I don't even know what to do. I am at a loss. I wish I had never tried to do this deferment. I wish I hadn't listened to my parents' suggestion. But it's too late now. Anyway, what should I do? Make the payment right now online or wait and see what they say on Monday?
Meanwhile, my payment is three days late right now. I'm afraid of it being even later. What if they send a guy to repo my car? This bank is just so freaking shady that I don't trust them at all!
Help me, ladies. Help me figure out what to do
Re: Need advice urgently on a car payment situation (long)
Please do get rid of HBO, STARZ, and take a serious look at reducing/cutting cell phones, eating out, buying new clothes, entertainment, hair and make up products, salon treatments
Post your budget if you have one -- if you do not have a budget - start tracking ALL spending for the next few months and then make adjustments to lower your outflow.
There was a reason this company was the only one that would give you a loan - so you need to fix your financial habits and thinking about money. Read Dave Ramsey's Total Money Makeover (helpful for getting out of debt)and Smart Couples Finish Rich by David Bach (good for setting up finances with a partner that works for both people)
Basic rules - know that is coming in - know what is going out. What goes out needs to be less that what comes in, and if it isn't you need to either add more income or reduce what is going out. ALWAYS save something from each paycheck - even if it $5.. Plan for future expenses. STOP using credit cards and go to cash (debit).
Post your budget. It sounds like you need to do a serious adjustment of your finances if it's going to be this close to make your payment every month.
You need to sell your car and find something you can afford with cash, or look into refinancing w another bank.
A bit late reading this. If you are still out there, OP, I'm curious what happened. I really don't understand the whole "we're still trying to decide on your deferrment" over a week later. I got a deferrment once from my previous bank on an auto loan and I literally did it over the phone. I had to pay a $25 fee, but I wasn't given the runaround about it.
For the future, if you don't take the other PPs advice and do keep this car. I suggest you work hard on getting your credit scores/history way up. It does take time, there are not many shortcuts. But if you can at least get to a point where you could refi the car loan, it sounds like that would be best.
Also, look back at your contract. Nowadays, companies are required to make it very clear how much the car was purchased for, how much you will pay in interest over the total life of the loan, and how much you will ultimately pay for the car if you have the loan for the whole time.
Anyway, I took the advice and made the payment. I was only three days late with it so I did not incur any late fees. All is well now.
I am not having trouble making the payments anymore so I do not plan on selling my car. I owe about $9,000 left on it and next year, I plan on refinancing my car so hopefully the payments will be lower. Then I can begin making double payments and get rid of this loan ASAP.
Well, thanks for the advice ladies! It was very helpful as always