Overhaulin' - I got a car title loan in Dec. 07 and my car has now "blown up". Should I still pay on the loan?

I got a car title loan in Dec. 07 and my car has now "blown up". Should I still pay on the loan?

What would happen if I let the loan default? The loan was for 500.00 and I have to pay 610.00 back. It will cost me close to that in order to fix my car. The car isnt worth it to me.

Public Comments

That is too bad. If your insurance didn't cover such a loss, then I am afraid your contract to pay back the loan will still be enforced.
you will have crappy credit for only $500 ...everything in life from now on will cost you much more in interest.... the $500 is a cheap life experience.....if you already have crappy credit history, why worry about it now... the car couldn't have been worth much in the first place... for only $500 i am surprised it lasted three months
You can let them have it but they do not want it either. It will ruin your credit but if you pay it will help your credit. It will mater if you want to get any kind of loan later.
You will have a big negative impact on your credit. I will be on your report for 7 years. For $500 it just isn't worth it. Take the loss now because in the long run bad credit will cost you thousands instead of $500
If someone borrowed money from you and decided not to pay you back, would you be upset? Of course you would. Pay the loan.
Just because your Car is "blown up", it doesn't change your legal or moral obligation to paying your loan. You will severely damage your credit and if you need a loan again it's going to be real rough getting a loan or it's going to be an outrageous % rate they will give you. Pay now or pay even more later. This may feel like a difficult financial decision to make right now but paying the loan will pay off later. Good Credit is worth it.
pay it man cause when you want to get a new car your credit will be all jacked up
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