To redeem or not to redeem, that is the question

[Crawley]

Looking to file Pro Se next month. I have an older model vehicle that I like, but I'm upside down on. Bought at a buy here - pay here, who sold the note to a company that's now reporting good on my credit report. 24 months left, bad interest rate (21%). Owe about 9-10k. Am I better off going for the redemption, valued at ~5k or keeping the positive trade line on my credit report (1yr paid perfect)?

Also, if I do go the redemption route, when do I actually file the Motion to Redeem?

Thanks!

[justbroke]

The positive trade line should not be your motivating factor. I would redeem in this case. I would, as soon or before I filed, call 722 Redemption Funding (US Bank) and make arrangements to redeem. I'd also research how to file a Motion to Redeem and how valuation is done in my specific District. I did something similar, albeit my loan was with a traditional lender. I was able to shed almost $11K of negative equity by redeeming and later refinancing (after discharge).

I can't tell you what rate to expect from 722 Redemption Function, but it should be no worse than what you have now! Just don't refinance with a "NEW" term! Refinance with the same remaining term that you have left on the existing vehicle. The payment will be lower, and you will get it paid off rather than be in a new loan for 5 years.