Options for Charge Off

[Kerry25]

Hello, I made the colossal mistake to sign for a car for someone and they have stopped making payments. For the sake of saving my credit I have made the past couple payments but cannot take on that expense anymore. I have recently found out that the car was taken to a mechanic but the mechanic was never paid. The mechanic placed a lien on the car. The lien company called the creditor to repossess the car but the creditor did not respond (so I'm told as I am now getting details from the lien company). The mechanic was able to get the car's title and now own the car. I spoke to a rep for the creditor who advised me that once I stop making payments they will simply report on my credit as charge Off/repossession. Does anyone have any recommendations on what I should do. I have thought about a settlement but for a 9500 loan, a settlement is something I can't really afford right now. Also, i have very good credit so I would hate to mess that up as well.

 

[Zigner]

1: US law only - you failed to give us the name of your state.

2: You aren't going to have "very good credit" once this washes out (unless, of course, you pay off the debt right away.)