Why is a car repossession so much worse than regular unsecured credit cards debt and charge-off?
Question by Shane Uehara: Why is a car repossession so much worse than regular unsecured credit cards debt and charge-off?
when the car is actually a secured loan.
what is the logic behind it that’s so much worse than regular debt unpaid?
if someone’s credit is already shot, say 600, how much damage can repo do?
Best answer:
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infinite crisis 247 posted: 27 Jan at 5:43 pm
it’s way worse because the debt amount is usually much more. could be in the 10s of thousands. also, a collection agency is not likely to charge off an amount this high. they will take you to court and get a judgement against you…resulting in possible liens, asset freeze, or wage garnishment. a repo could knock off a lot more points. don’t think that 600 is the basement. it could get much worse.